Delta Shows Narrower Quarterly Net Loss

 
Old Oct 14, 03, 9:52 am
  #1  
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Delta Shows Narrower Quarterly Net Loss

Various Items for reference:

DAL CURRENT REPORT Form 8-K Dated: 10-14-03 HTML Format

Delta Shows Narrower Quarterly Net Loss

"Delta reported a narrower third-quarter net loss as stronger summer revenue, mainly driven by leisure travelers, helped temper the industry's historic downturn."

Delta Air Lines Reports Third Quarter 2003 Results

"Ends quarter with $2.9 billion in cash, of which $2.7 billion is unrestricted cash."

"3Q operating revenues increased 0.7 percent and passenger unit revenues increased 8.0 percent, compared to the September 2002 quarter. Delta has continued to outperform the industry in year-over-year unit revenue comparisons for each of the last 16 months through August 2003."


Delta Reports Narrower 3rd-Quarter Loss

"Atlanta-based Delta said it has reached an agreement with an unnamed third party to sell 11 Boeing 737-800 aircraft that had been scheduled for delivery to the airline in 2005. The transaction is expected to reduce the company's capital expenditures by $500 million."

"For the first nine months of the year, Delta lost $458 million, or $3.71 a share, compared to a loss of $920 million, or $7.46 a share, a year ago. Nine-month revenue was $9.905 billion compared to $9.997 billion in 2002."


Delta sees 4th-qtr loss $225-275 mln with items

So....if the YTD loss for 2003 is @ $700M, but DL pilots make roughly $800M more than AA pilots, then DL would have made $100M if the contract had been modified.

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[This message has been edited by UnofficialDLHelper (edited 10-14-2003).]
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Old Oct 14, 03, 11:27 am
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Sure looks like management os doing a good job tome.

And there's your answer as to how much the whole MQM thing has affected Delta as far as leisure travel.

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Old Oct 14, 03, 12:02 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Despite our progress in reducing costs, Delta has not yet achieved a competitive cost structure, a problem that is primarily related to pilot costs," Mullin said.

He said total pilot costs are 80% higher than rival AMR Corp. (NYSE:AMR - News)'s American Airlines. Delta continues to talk to pilots about cuts. He said executives will meet with new pilot-union leaders later this month.

Chief Financial Officer Burns said if Delta had the same pilot cost structure as American, Delta's third-quarter loss would have been $46 million, rather than the actual net loss of $164 million.</font>
http://biz.yahoo.com/djus/031014/1213000724_2.html

You gotta love it when the CFO of a public corporation presents what-if fantasy pro-formas at the time of an earnings release.

If only our costs weren't so dang high we wouldn't have lost as much money as we did.

Uhh, Yeah . . . But your costs were that high, and you lost the larger amount. You want some extra credit for identifying the primary difference between your cost structure and that of UAL, CO, AA and USAir??

If only we could attract more high fare pax like we did back in 1999-2000, we wouldn't have lost as much money in the third quarter.
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Old Oct 14, 03, 12:17 pm
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Revenue is basically flat, however...
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Old Oct 14, 03, 1:26 pm
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Here's an interesting SPIN:

From Associated Press: "Last week, Delta told its 14,000 flight attendants it was imposing new work rules that blend their base and overtime pay. The airline says the changes will allow workers to earn more and at the same time save the company $40 million a year through increased productivity."

Huh? You'll earn more, and we'll save $40 million paying it to you. ???????

(edited to credit AP)


[This message has been edited by doobierw (edited 10-14-2003).]
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Old Oct 14, 03, 1:46 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by doobierw:
Here's an interesting SPIN:

From Associated Press: "Last week, Delta told its 14,000 flight attendants it was imposing new work rules that blend their base and overtime pay. The airline says the changes will allow workers to earn more and at the same time save the company $40 million a year through increased productivity."

Huh? You'll earn more, and we'll save $40 million paying it to you. ???????
</font>


Sounds like Gordo may be helping write DL's material now. And people made fun of voodoo economics.
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Old Oct 14, 03, 1:54 pm
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Not to mention fuzzy math
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Old Oct 14, 03, 4:17 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by doobierw:
Here's an interesting SPIN:

From Associated Press: "Last week, Delta told its 14,000 flight attendants it was imposing new work rules that blend their base and overtime pay. The airline says the changes will allow workers to earn more and at the same time save the company $40 million a year through increased productivity."

Huh? You'll earn more, and we'll save $40 million paying it to you. ???????
</font>
I guess 'increased productivity' means they get to work a heck of a lot more hours for just a little bit more money. Get ready for crankier FAs.

Edited for proper grammer


[This message has been edited by sxf24 (edited 10-15-2003).]
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Old Oct 15, 03, 7:03 am
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Part of the newscast I heard was that DL will sell some planes. Does anyone know what planes are being sold?
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Old Oct 15, 03, 8:18 am
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737-800's are being sold. So far in the past year Leo has bought 1 billion in RJ's and supposed to spend another 1 billion next year. If you have no money, why are you giving bonuses, fat retirements and buying RJs??
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Old Oct 15, 03, 9:13 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by L-1011:
Part of the newscast I heard was that DL will sell some planes. Does anyone know what planes are being sold?</font>
I believe Delta is selling 11 new 737-800 production aircraft that have not yet been delivered. That buyer apparently only needed 11, and Delta had 8 more on the way after that, so they delayed delivery of those aircraft as well. 19 total I believe....
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Old Oct 15, 03, 9:24 am
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AJC business section said it was selling 11 Mainline jets and dererring 8. I'm rather confused also, but the article said mainline jets, which I assumed we already owned and were operating. Still have no idea
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Old Oct 15, 03, 9:38 am
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Delta is putting pressure, rightly so, on the pilots for contract concessions. Selling the airplanes reduces the opportunities for advancement for the mainline pilots.

At the same time, the Connection carriers are growing with the addition of new routes and the purchase of new airplanes.

The pilots are stalling and waiting for the economy to rebound in the hope that they can avoid concessions. This tactic by Delta makes it more difficult for the pilots to continue their effort to run out the clock.
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Old Oct 15, 03, 11:26 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by L-1011:
Does anyone know what planes are being sold?</font>
See the graphic below, which I hope helps illustrate the answer to your question, L-1011:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
  • 2005 — Boeing 737-800
    New Delivery Schedule as of October 13, 2003: 0*
    Planned Delivery Schedule as of June 30, 2003: 19
  • 2005 — Boeing 777-200
    New Delivery Schedule as of October 13, 2003: 2
    Planned Delivery Schedule as of June 30, 2003: 2
  • 2006 — Boeing 737-800
    New Delivery Schedule as of October 13, 2003: 19
    Planned Delivery Schedule as of June 30, 2003:19
  • 2006 — Boeing 777-200
    New Delivery Schedule as of October 13, 2003: 3
    Planned Delivery Schedule as of June 30, 2003: 3
  • 2007 — Boeing 737-800
    New Delivery Schedule as of October 13, 2003: 23
    Planned Delivery Schedule as of June 30, 2003: 23
  • 2008 — Boeing 737-800
    New Delivery Schedule as of October 13, 2003: 8
    Planned Delivery Schedule as of June 30, 2003: 0
*Reflects the planned sale of 11 Boeing 737-800 aircraft and deferral of eight B737-800 aircraft</font>
The following are quotes from the other thread launched by me, which will now die peacefully and on its own volition:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Spiff:
Article

October 14, 2003 10:40:00 AM ET

NEW YORK, Oct 14 (Reuters) - Delta Air Lines Inc. (DAL) expects to report a fourth-quarter GAAP loss of $225 million to $275 million, including items, Chief Financial Officer Michele Burns said on Tuesday.

Excluding items, the No. 3 U.S. airline expects to post a fourth-quarter loss.</font>
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Canarsie:
That explains why the stock of Delta Air Lines is down US$0.80 to US$13.90 per share as of this post...</font>
Delta Air Lines’ stock is currently trading at $US13.60 per share. Meanwhile, the stock of the parent company of American Airlines continues to rise and is at US$14.52 per share.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by PIONEER:
I wonder how many planes are being mothballed, and also how many more RJs are being acquired by the various commuter carriers.

I also wonder what other airline is buying the planes that Delta was going to receive in 2005. Southwest?

At the rate things are going, Delta may never need to buy another Boeing product again. They seem to be phasing in RJs faster than they need to retire the existing mainline planes as they reach the end of their useful life. Obviously that's an exaggeration, but the day may come when the only remaining 48 state mainline flights are to/from ATL/NYC/LAX and maybe a few other cities.
</font>
Note: I would personally like to thank the moderators of the Delta Air Lines forum for keeping my “unlocked FlyerTalk thread streak” alive, as silly and insignificant as I may seem to care about that.

[This message has been edited by Canarsie (edited 10-15-2003).]
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Old Oct 16, 03, 1:20 pm
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Both NW and CO announced net profits ($42million NW and $133million CO). Did defecting DL Medallions affect the bottom lines?
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