Delta Expects Positive Cash Flow in 2021

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swamt

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Oct 23, 2010
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To be honest I just hope for an improvement over 2020. Still not expecting a full year profit for 2021 but I do think the passengers will pick up in summer and then back down as this administration will scare folks again to stay home for all the holidays. Maybe a more realistic goal would be for year 2022???
 
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swamt

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Time'll tell, but DL has managed to remove a huge % of costs out of the system, and is still commanding a yield premium compared to other carriers.

That's the truth. Delta has done fantastic, meeting or more accurately most likely beating SWA in cost cutting measures. Delta was at 100 million per day and brought that down to SWA's same 12 million per month, however, I assure you Delta was burning way more cash than SWA when all this started, by far way more. Also in the video interview below he also stated that Delta will NOT layoff or furlough any employees for rest of 2021 as Southwest said also. Great news to hear. Especially when United and American are already telling their employees to brace for furloughs coming April 1st.
I really enjoy listening to Ed's interviews, he is so positive on the outlook of the company and the industry. He does claim to be cash spend neutral by 2nd Q and is very positive of the uptick starting in spring.


https://www.yahoo.com/finance/video/containing-covid-19-most-important-214110896.html
 

CremaDiLimone

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Jun 8, 2016
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That's the truth. Delta has done fantastic, meeting or more accurately most likely beating SWA in cost cutting measures. Delta was at 100 million per day and brought that down to SWA's same 12 million per month, however, I assure you Delta was burning way more cash than SWA when all this started, by far way more. Also in the video interview below he also stated that Delta will NOT layoff or furlough any employees for rest of 2021 as Southwest said also. Great news to hear. Especially when United and American are already telling their employees to brace for furloughs coming April 1st.
I really enjoy listening to Ed's interviews, he is so positive on the outlook of the company and the industry. He does claim to be cash spend neutral by 2nd Q and is very positive of the uptick starting in spring.


https://www.yahoo.com/finance/video/containing-covid-19-most-important-214110896.html

when i listened to aa's earnings - aa made a big deal about their cash burn number. aa says they are including a daily number for debt principal and buy-outs..i'm guessing the others others are not?

As a reminder, our definition of cash burn includes $8 million per day of regular debt principal and cash severance payments.

i'm not sure because i didn't listen to the other earnings calls.
 

Kev3188

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Oct 5, 2003
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Right in the middle.
That's the truth. Delta has done fantastic, meeting or more accurately most likely beating SWA in cost cutting measures. Delta was at 100 million per day and brought that down to SWA's same 12 million per month, however, I assure you Delta was burning way more cash than SWA when all this started, by far way more. Also in the video interview below he also stated that Delta will NOT layoff or furlough any employees for rest of 2021 as Southwest said also. Great news to hear. Especially when United and American are already telling their employees to brace for furloughs coming April 1st.
I really enjoy listening to Ed's interviews, he is so positive on the outlook of the company and the industry. He does claim to be cash spend neutral by 2nd Q and is very positive of the uptick starting in spring.


https://www.yahoo.com/finance/video/containing-covid-19-most-important-214110896.html

He’s done a really good job of managing expectations, and keeping an even keel.
 
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swamt

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Oct 23, 2010
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when i listened to aa's earnings - aa made a big deal about their cash burn number. aa says they are including a daily number for debt principal and buy-outs..i'm guessing the others others are not?



i'm not sure because i didn't listen to the other earnings calls.

Southwest is including the severance and early out packages as they were mostly all at the end or near the end of 2020. Southwest has also added an Extended Leave to folks still at work full time. Now they are offering 1-3 months off at partial pay, (50%) I believe.
Going into 2021 Southwest is expecting a slight uptick in monthly cash burn as they take on more Maxx's being delivered, more retirements of older a/c and some more additions to flights and new cities added in 2021 1Q & 2Q. If I'm not mistaken they are expecting to go from 12- 15-16 million per month in 1Q 2021.
 
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swamt

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No way in 2021. Virus still running strong and economy is in the dumps.
Delta now reporting it's first profit with help from taxpayers assistance, but hey, all the airlines received that assistance so it's fare game for all.
Delta reports profit and AA reports positive cash flow or rather break even...


 

eolesen

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Jul 23, 2003
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Yeah, the devil is in the details. They made a $652M profit *after* getting $1.5B in payroll assistance...

Without the government bailouts, DL lost $881M for the quarter.
 
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swamt

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Like I said, ALL the majors have taken in the assistance from the gov. the bottom line is, it's a profit.
And American would not break even or positive cash flow if they didn't as well. With or without assistance, most of us were not expecting a possible profit so early on in 2021.
Not sure my airline will do as well as Delta as we had too many glitches with the computer systems in 3 different large areas all about the same time period. Again, too much dependence on electronics, so when a crash happens, they need to look at more and better manual backup systems kind of how the Air Traffic Control Towers do it with their manual back up systems
 

eolesen

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Doesn't matter to me if every airline took government money, I don't consider bailouts as a profit.