-- As a result of rising fuel cost, Delta Airlines plans to reduce domestic capacity by 13% in the second half, more than the 10% it had previously announced, the airline said Wednesday in a filing with the Securities and Exchange Commission. "Delta will continue to monitor the economic and fuel environment and make additional adjustments as necessary," said the carrier. However, Delta still expects a profitable second quarter, excluding items, and its outlook on quarterly performance remains in line with previous guidance. At the same time, its liquidity remains strong due to solid operating cash flow and it sees unrestricted liquidity totaling $3.2 billion at the end of the year, down $600 million from end of 2007. It also expects to get regulatory approval for its proposed merger with Northwest Airlines
brokenwrench
Senior
DAL Mech
Advanced
Now..now fella's,...no need to get "fiesty"
Seriously, Since I can Definitely "Dish it out", so to,.........I can TAKE it !!
I have a track record of INSTANTLY issuing Public admission's of being wrong(When I am wrong) !
DL's ever present confidence, make we wonder if they have a HUGE stash of Hedged Jet-A that no one knows about, including the good folks on Wall street.
I'm STILL puzzled how INCREASING ones daily fuel bill, by perhaps 50-60-75%(via NW) is a prudent move, since the positive effects of such a move, won't be realized for numerous years to come.
(Wall streets words, NOT mine) !
As always, TIME will TELL.
Seriously, Since I can Definitely "Dish it out", so to,.........I can TAKE it !!
I have a track record of INSTANTLY issuing Public admission's of being wrong(When I am wrong) !
DL's ever present confidence, make we wonder if they have a HUGE stash of Hedged Jet-A that no one knows about, including the good folks on Wall street.
I'm STILL puzzled how INCREASING ones daily fuel bill, by perhaps 50-60-75%(via NW) is a prudent move, since the positive effects of such a move, won't be realized for numerous years to come.
(Wall streets words, NOT mine) !
As always, TIME will TELL.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I do NOT think they do, but trying.."desperately" to INCREASE their fuel consumption(via NW) in this "poisonous fuel cost climate".......does give me pause.
Please explain. Am I missing somthing? How is Delta cutting 13% and NW around 10% of their
flights plus grounding many A/C "Desperately" INCREASING their fuel consumption?
Delta's hedging position currently stands at:
Q2 2008: 49% at $2.76
Q3 2008: 46% at $2.88
Q4 2008: 40% at $3.30
2009: 22% at $3.45
2010: 5% at $3.05.
QA4Jet-A
Veteran
If I may, and not trying to butt in, or create flames.... my guess is, NHBB considers the potential merger a 'desperate' move. Capacity cuts have already been increased by Delta since March and I would not be surprised if they cut more. The way I see it, IMHO, most carriers will end up slashing close to 20% before the year ends or well into 2009. Notice they seem to do it gradually, so as to not 'tip ones hand' and give another an edge.... either that or the Bean Counters are spending way to much time at Starbucks and not watching the store. In any case, we are all in for a wild ride and I wish the best for all of us in this crazy time. No matter the livery of our planes or the name we fly under, we are still in the same boat.
Mabe I am not understanding your point, but NW is now buying fuel and seperately DAL is buying fuel. Once the merger is completed (and if) then there will be one airline purchasing the same amount of fuel (minus what capacity they both cut pre merger) . I still am not getting what gives you pause? Please explani.
- Thread Starter
- #12
You should admit you are wrong. Delta is merging with NWA but will get rid of all unprofitable routes so they will not completely take on NWA fuel expenses. Your percentages are just added to Deltas. You need to change your way of thinking mathmatically. Percentages are not just added but added and then divided by a lot of corporate stuff. It is a very complex procedure. Time will tell!
I do NOT think they do, but trying.."desperately" to INCREASE their fuel consumption(via NW) in this "poisonous fuel cost climate".......does give me pause.
