Analysts - AA to benefit most for oil drop, DL least

[WorldTraveler]

and yet DL is expecting a higher operating margin than AA for the 4th quarter despite hedging losses.

Suppose, just maybe, that DL's greater ability to generate revenue is the reason?

Wall Street has been fixated on the hedging issue without understanding the revenue situation.

quite simply, all airlines are not generating revenue to the same degree.

whatever fuel cost advantage AA has is clearly being offset by DL's higher revenue generation. DL is generating a 7% revenue premium to the US industry.

Feel free to tell us why AA's revenue generation is not on par with DL's.

 

[FrugalFlyerv2.0]

Uh oh - more positive outlook for AA.  Time for a diatribe.
 
American Is Rated Top 2015 Airline Pick by JPMorgan as Oil Prices Fall - TheStreet.com

 

and yet DL  ... ... ...

Suppose, just maybe, that DL's greater  ... ... ...

whatever fuel cost advantage AA has is clearly being offset by DL's higher revenue generation. DL is generating a 7% revenue premium to the US industry.

Feel free to tell us why AA's revenue generation is not on par with DL's

 

 

[commavia]

Deleted

 

[WorldTraveler]

just answer the question as to how DL can generate higher margins even with hedge losses and higher employee salaries

that is all that matters.

oh, and DL also has noted that the refinery will generate $70M in profits to DL's fuel costs despite hedge losses - which other hedged carriers will not have.

and DL will continue to hedge because fuel prices will go up at some point and at that point AA will pay 100% of the increase in fuel costs when that happens while DL and other carriers that hedge will not.

 

[FrugalFlyerv2.0]

just answer the question as to how DL can ...............

that is all that matters.

oh, and DL also has noted that .....................................

and DL will continue to hedge because .................................

 
Nice deflections
 

 

[AANOTOK]

just answer the question as to how DL can generate higher margins even with hedge losses and higher employee salaries

that is all that matters.

oh, and DL also has noted that the refinery will generate $70M in profits to DL's fuel costs despite hedge losses - which other hedged carriers will not have.

and DL will continue to hedge because fuel prices will go up at some point and at that point AA will pay 100% of the increase in fuel costs when that happens while DL and other carriers that hedge will not.

Amazing, in the AA forum, in this comment, WT mentions DL five times and AA once.
("DL can, DL also has, profits to DL, and DL will continue, while DL...AA will pay")

 

[WorldTraveler]

just answer the question:

if AA has such a cost advantage, why are other carriers who hedge generating higher operating margins?

 

[AA Tulsa Mechanic]

If Delta has so much money why do they pay half of their employees under $15 an hour?

 

[FWAAA]

Amazing, in the AA forum, in this comment, WT mentions DL five times and AA once.
("DL can, DL also has, profits to DL, and DL will continue, while DL...AA will pay")

Translation: Your employer airline sucks and my former employer airline can do no wrong and will dominate the world.

Reads like a five year old bragging about his father - how your deadbeat dad is such a loser and how his is SuperDad.

 

[Kev3188]

If Delta has so much money why do they pay half of their employees under $15 an hour?

Win.

 

[WorldTraveler]

If Delta has so much money why do they pay half of their employees under $15 an hour?

 except half of DL's employees in ANY workgroup don't make that little.

 

Translation: Your employer airline sucks and my former employer airline can do no wrong and will dominate the world.

Reads like a five year old bragging about his father - how your deadbeat dad is such a loser and how his is SuperDad.

except I didn't start a thread with a thread that DL would dominate an airport. Such a thread does exist on this forum.

Someone who started a thread on this forum must have DAD problems.

 

[FrugalFlyerv2.0]

Translation: Your employer airline sucks and my former employer airline can do no wrong and will dominate the world.

Reads like a five year old bragging about his father - how your deadbeat dad is such a loser and how his is SuperDad.

 

 except half of DL's employees in ANY workgroup don't make that little.

except I didn't start a thread with a thread that DL would dominate an airport. Such a thread does exist on this forum.

Someone who started a thread on this forum must have DAD problems.

 

 

[WorldTraveler]

you didn't answer the question about how an airline that doesn't have fuel hedges and should not have the burden of hedge losses has given pre-tax margin guidance that is no better and perhaps worse than carriers that do have them.

can you help us answer that question?

 

[MetalMover]

If Delta has so much money why do they pay half of their employees under $15 an hour?

That's a big part WHY they make money..On the backs of their employees.

 

[WorldTraveler]

except that DL's employees make far more than the industry average and have seen greater increases than those at any other airlines.

Your statement isn't even close to being accurate.

but perhaps you can show us some published statistics that support your contention.

plz provide a link to where AA, not WS analysts have provided margin analysts for 2015.