DL's profit does not disappoint.

[WorldTraveler]

Absolutely. And probably the reason why the market is currently being kinder to AAL and UAL today. You don't have to go along with what the analysts think or suggest but you also shouldn't be flippant with them.

I'd just like to know why the S and P 500 has it all wrong to not have Delta at the top of their list for market capitalization? I would have to think in WT's mind that the market should be lending more money to Delta than Apple, Mobil, Microsoft and IBM?

Hopefully he can explain to us why they have it all wrong? Forget the other airlines. Delta should be up there with the really big boys right?

http://www.globaleconomicandinvestmentanalytics.com/images/stories/ArticleCharts/SP%20500100%20Largest%20Companies%20Ranked%20By%20Market%20Cap/100%20Largest%20Companies%20Ranked-Part1.pdf

you would like to think so but DL stock has gone down every time DL reports its financial results because DL goes first and analysts still have rosy-eyed expectations about what AA and UA will do that are shattered by real world realities when they finally do report.

Do you ask yourself why DL can manage to report its traffic by the end of the 2nd business day following the close of the previous month while AA and UA take more than 7 business days to do the same?

DL reports its financials first while other carriers including AA and UA come along behind because DL knows what is going on as the operation occurs so that they can report quickly without having to make up all kinds of stories.

when we find out that AA's CASM is growing faster than DL or UA while its RASM is at the bottom, investors will change their tune.

if there is one thing my time on this board has taught me it is that the vast majority of the world including many airline employees know very little of what makes their employer make money although a whole lot of people here try to argue incessantly with facts that are as obvious as their noses but they refuse to acknowledge

if airline employees argue and don't know, it is hardly any surprise that people in the analyst community try to act as if they are airline executives and yet fall flat on their faces when they ask stupid questions like were done on DL's investor call.

 

[WeAAsles]

you would like to think so but DL stock has gone down every time DL reports its financial results because DL goes first and analysts still have rosy-eyed expectations about what AA and UA will do that are shattered by real world realities when they finally do report.

Do you ask yourself why DL can manage to report its traffic by the end of the 2nd business day following the close of the previous month while AA and UA take more than 7 business days to do the same?

DL reports its financials first while other carriers including AA and UA come along behind because DL knows what is going on as the operation occurs so that they can report quickly without having to make up all kinds of stories.

when we find out that AA's CASM is growing faster than DL or UA while its RASM is at the bottom, investors will change their tune.

if there is one thing my time on this board has taught me it is that the vast majority of the world including many airline employees know very little of what makes their employer make money although a whole lot of people here try to argue incessantly with facts that are as obvious as their noses but they refuse to acknowledge

if airline employees argue and don't know, it is hardly any surprise that people in the analyst community try to act as if they are airline executives and yet fall flat on their faces when they ask stupid questions like were done on DL's investor call.

Thank you for setting us all straight at least on here. It's good to know that you are sacrificing Millions by remaining on this one little social media site to inform this handful of participants who can gain from your experience over these so called filthy rich professionals.

Bravo for being a martyr for the cause.

 

[WorldTraveler]

it is you who is doing the dying for a losing lost cause.

 

[WeAAsles]

it is you who is doing the dying for a losing lost cause.

That's the shortest sentence you ever wrote. Good job. Keep it up.

 

[robbedagain]

i think they did speak to him..  they told him to get lost  bec he is a total embarrassment to delta! 

 

[WorldTraveler]

That's the shortest sentence you ever wrote. Good job. Keep it up.

dumbing it down is exactly what some communicators have to do.

 

[jcw]

dumbing it down is exactly what some communicators have to do.

Another personal attack

 

[WorldTraveler]

now that all of the major US carriers have reported, it is worth noting a few major trends.

a quick review of earnings reports shows (subject to correction if an error is noted) that:

DL is now the largest US carrier based on both total operating revenues and passenger revenues.

DL's RASM growth was better than AA's but not as good as UA. DL added the most capacity to its network but showed RASM weakness to Asia and Latin America. UA had positive RASM growth in Latin America although AA's RASM fell an astonishing 11.7%, highlighting that troubles in major markets like Venezuela and Argentina have an enormous effect on the largest carrier there.

The domestic market is clearly the strongest performing; nearly all carriers showed strong domestic RASM growth except for AS which is unique in having negative domestic RASM.

All carriers had good non-fuel cost control.

DL's pre-tax/pre-specials operating margin was the best of the big 4.

DL paid out more profit sharing than any other airline; UA paid out $129M and WN paid out $100M compared to DL's $384M.

DL had the lowest fuel cost per gallon despite taking hedge losses.

 

[jcw]

They might have had the lowest cost per gallon however they fly gas guzzlers so they waste fuel

Second while you like to claim they have the highest revenue they have the worst performing operating income performance that means they are poorly managing growth since is driving down operating income - horrible management of capacity they are flying more at a loss

I did not realize DL taught financial analysis at FA school

Too bad the financial performance does not match you fantasy

Keep up the daily affirmations - bless your heart

 

[WorldTraveler]

AA's lower fuel burn per ASM is offset by its higher interest expense due to larger debt (what you get with newer aircraft).

AA has a higher mainline cost per ASM than DL.

DL is a more efficient airline at producing its product than AA or UA.

when you combine that with the fact that DL gets more revenue per ASM than any other US airline, it isn't hard for anyone who actually looks at the numbers to see why DL is generating the profits that they are.

 

[jcw]

Keep telling yourself that

Last I checked AA's operating income was 50% higher

If you add back the retirement one time for 747's and AA merger one times AA is still 22% higher

It must be killing you that all the focus on Asis by DL they are down 2.2%

Let's see DL fuel consumption was up 2% vs 1.4% at AA - aa outperformed DL

DL burned 12% more fuel in the quarter so a cost advantage in fueled burned away

Passenger yield up 2% at DL - up 3.7% at AA another AA winner

Cost per set up 12% at DL - up 0.8% at AA amazing how well AA is managing better than DL

 

[WeAAsles]

AA's lower fuel burn per ASM is offset by its higher interest expense due to larger debt (what you get with newer aircraft).

30% lower fuel costs with new aircraft that will factor in to paying that debt and business travelers will prefer riding in a new car rental over a clunker. Delta is 7 years removed from Bankruptcy and time will tell the true tale.

AA has a higher mainline cost per ASM than DL.

Delta is 7 years removed from Bankruptcy and time will tell the true tale.

DL is a more efficient airline at producing its product than AA or UA.

Delta is 7 years removed from Bankruptcy and time will tell the true tale.

 

[WorldTraveler]

time will indeed tell whether DL's strategy of spending less on aircraft and having higher fuel costs is offset by lower debt.

the industry is at a high right now. It is easy for airlines to pay down debt.

There is no assurance it will remain that way.

WN's success has been driven by a very strong balance sheet - far more like DL's model than AA or UA's.

The difference is as great as DL's commitment to profit sharing - shared with WN - than AA's which does not include it.

History is on the side of the DL/WN model than the AA/UA model.

time will indeed tell.

 

[WeAAsles]

time will indeed tell whether DL's strategy of spending less on aircraft and having higher fuel costs is offset by lower debt.

the industry is at a high right now. It is easy for airlines to pay down debt.

There is no assurance it will remain that way.

WN's success has been driven by a very strong balance sheet - far more like DL's model than AA or UA's.

The difference is as great as DL's commitment to profit sharing - shared with WN - than AA's which does not include it.

History is on the side of the DL/WN model than the AA/UA model.

time will indeed tell.

Wait a gosh darn minute here. Aren't you the one selling PROFIT SHARING on the pretext that the airlines are going to be making money for the rest of eternity!!!!!

Now since it might not suit your agenda well hey let's do a little 360 action huh?

 

[WorldTraveler]

no, I said that DL has derisked the business so that it can be profitable. It's no different from what WN has done.

AA has not done the same thing including by taking on enormous amounts of debt relative to DL.