Delta financials are out

[WorldTraveler]

I don't have all my notes in front of me but it appears:

- DL had an operating margin for the quarter behind NW and US but above the rest of the 6.

- DL had one of the lowest mainline CASMs.

- RASM showed major improvements.

- Cash is building very nicely.

- June monthly operating margin appears to be at least 10%.

- The huge restructuring charges are an indication of how dramatic DL's restructuring is.

I'll analyze the data and post more.... anyone else is welcome to post anything they see.

 

[Fly]

Sure looks impressive :blink: I can see why you're so impressed. :unsure:


Delta posts $2.2 bln net loss for second quarter
Wed Aug 9, 2006 4:42pm ET

Delta posts $2.2 bln net loss for second quarter
Delta Air seeks to outsource some work to IBM
UPDATE 1-US airlines raise fares by up to $10 each way
More Company News... Email This Article | Print This Article | Reprints [-] Text [+]
NEW YORK, Aug 9 (Reuters) - Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) on Wednesday reported a wider quarterly loss as it paid out more than $2 billion in bankruptcy related costs.

Atlanta-based Delta, which has been reorganizing operations under bankruptcy protection since last September, reported a quarterly net loss of $2.2 billion, compared with a net loss of $382 million in the same quarter a year ago.

Excluding reorganization costs, it reported income of $175 million for the quarter, compared to a loss of $304 million on the same basis in the year-ago quarter.




© Reuters 2006. All Rights Reserved.



ALTHOUGH......it does show a nice adjusted profit. So that's a nice change. Good job on that EMPLOYEES of Delta (excluding obnoxious passengers who cheer when pilots lose their pensions)


Delta posts $2.2 billion second-quarter loss, turns profit on adjusted basis
By HARRY R. WEBER
AP
ATLANTA (AP) - Delta Air Lines Inc., the third-largest U.S. carrier, reported Wednesday a wider second-quarter loss of $2.21 billion (euro1.72 billion) even as higher ticket prices and fuller planes drove up revenue.

But excluding huge reorganization items, the airline said it turned its first adjusted profit in six years.

For the three months ended June 30, Atlanta-based Delta said its net loss amounted to $11.18 (euro8.68) a share, compared with a loss of $388 million (euro301.27 million), or $2.64 (euro2.05) a share, in the same three-month period a year ago. The prior-year loss included $6 million (euro4.66 million) in dividends that accrued for preferred shareholders.

Excluding reorganization items, the airline said it earned $179 million (euro138.99 million) in the second quarter.

Revenue in the quarter rose 9.6 percent to $4.66 billion (euro3.62 billion) from $4.25 billion (euro3.3 billion) recorded the same period a year ago.

Delta also was expected Wednesday to file in bankruptcy court its monthly operating report for June.

For the first six months of the year, Delta said it lost $4.28 billion (euro3.32 billion), or $21.86 (euro16.97) a share, compared with a loss of $1.46 billion (euro1.13 billion), or $10.17 (euro7.90) a share, in the same period a year ago. Six-month revenue rose to $8.37 billion (euro6.5 billion), compared with $7.96 billion (euro6.18 billion) recorded in the same period a year ago.

Delta, which filed for bankruptcy protection last September, has now lost more than $16 billion (euro12.42 billion) since January 2001. In recent months, it has begun to turn things around thanks to higher revenues and lower labor costs, despite persistently high fuel prices. Delta expects to emerge from bankruptcy reorganization by the middle of 2007.




I can just hear his little fingers whizzing across the keyboard now. 😛

 

[donttouchthebeauty]

Sure looks impressive :blink: I can see why you're so impressed. :unsure:
Delta posts $2.2 bln net loss for second quarter
Wed Aug 9, 2006 4:42pm ET

Delta posts $2.2 bln net loss for second quarter
Delta Air seeks to outsource some work to IBM
UPDATE 1-US airlines raise fares by up to $10 each way
More Company News... Email This Article | Print This Article | Reprints [-] Text [+]
NEW YORK, Aug 9 (Reuters) - Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) on Wednesday reported a wider quarterly loss as it paid out more than $2 billion in bankruptcy related costs.

Atlanta-based Delta, which has been reorganizing operations under bankruptcy protection since last September, reported a quarterly net loss of $2.2 billion, compared with a net loss of $382 million in the same quarter a year ago.

Excluding reorganization costs, it reported income of $175 million for the quarter, compared to a loss of $304 million on the same basis in the year-ago quarter.
© Reuters 2006. All Rights Reserved.



ALTHOUGH......it does show a nice adjusted profit. So that's a nice change. Good job on that EMPLOYEES of Delta (excluding obnoxious passengers who cheer when pilots lose their pensions)
Delta posts $2.2 billion second-quarter loss, turns profit on adjusted basis
By HARRY R. WEBER
AP
ATLANTA (AP) - Delta Air Lines Inc., the third-largest U.S. carrier, reported Wednesday a wider second-quarter loss of $2.21 billion (euro1.72 billion) even as higher ticket prices and fuller planes drove up revenue.

But excluding huge reorganization items, the airline said it turned its first adjusted profit in six years.

For the three months ended June 30, Atlanta-based Delta said its net loss amounted to $11.18 (euro8.68) a share, compared with a loss of $388 million (euro301.27 million), or $2.64 (euro2.05) a share, in the same three-month period a year ago. The prior-year loss included $6 million (euro4.66 million) in dividends that accrued for preferred shareholders.

Excluding reorganization items, the airline said it earned $179 million (euro138.99 million) in the second quarter.

Revenue in the quarter rose 9.6 percent to $4.66 billion (euro3.62 billion) from $4.25 billion (euro3.3 billion) recorded the same period a year ago.

Delta also was expected Wednesday to file in bankruptcy court its monthly operating report for June.

For the first six months of the year, Delta said it lost $4.28 billion (euro3.32 billion), or $21.86 (euro16.97) a share, compared with a loss of $1.46 billion (euro1.13 billion), or $10.17 (euro7.90) a share, in the same period a year ago. Six-month revenue rose to $8.37 billion (euro6.5 billion), compared with $7.96 billion (euro6.18 billion) recorded in the same period a year ago.

Delta, which filed for bankruptcy protection last September, has now lost more than $16 billion (euro12.42 billion) since January 2001. In recent months, it has begun to turn things around thanks to higher revenues and lower labor costs, despite persistently high fuel prices. Delta expects to emerge from bankruptcy reorganization by the middle of 2007.
I can just hear his little fingers whizzing across the keyboard now. 😛

Looks like good ole DAL are sugar coating things to me - That picture doesnt look pretty at all. Gool luck ATLtraveler.

 

[Flufdriver]

...only lost 4.28 BILLION in the first six months...I can see why WT is so excited. But remember...WT says DAL is way ahead of all the other carriers that went through BK. I don't remember any of the other BK airlines losing over 2 BILLION in a quarter. WT, I need you to look at my personal porfolio...you can tell me how great I'm doing losing money!! Your one of a kind WT...we're just not sure what kind!

 

[luv2fly]

Looks like good ole DAL are sugar coating things to me - That picture doesnt look pretty at all. Gool luck ATLtraveler.

While I rarely agree with WT, it is noteable that 2.1 billion of the loss is attributed to the unsecured note promised to ALPA during the last negotiated settlement. That 2.1 billion will never be collected in full, and will most likely be settled for pennies on the dollar when DL stock is reissued upon exiting BK next year. If I rememeber correctly, UA offered a similar note to ALPA that ultimately paid around 20 cents on the dollar.

 

[WorldTraveler]

I'll repeat - if you want to deny DL is making money today because of their restructuring charges, then you have to acknowledge that they will have a massive profit a year from now when they emerge from bankruptcy. You can't have it both ways.

As critical as I was (and am) of United, I acknowledged when they had operational profits (small and infrequent as they were) during bankruptcy but I also didn't get carried away with the $20B profit they reported when they emerged from BK.

DL still reported an operating profit margin that was 5 times larger than UA even though UA spent over 3 years and bankruptcy and emerged six months ago. In fact, UA's operating margin was dead last. Your unwillingness to acknowledge DL's financial superiority over UA belies UA's CONTINUED inability to run an airline with even average profitability.

 

[Fly]

but the real question MUST be: Do you whack off to the thought that some airline (basically anything except private sucks) can destroy jobs? Do you cheer when airplanes crash too?

(such a fun guy :huh: )

Wait! Better! Will you promise to kill yourself if Delta goes Ch 7? We'll host the party!!!!!

 

[WorldTraveler]

You're a sick woman, Fly.

I take no delight in anyone's demise but I must admit I am enjoying proving you wrong.

UA wasted 3 years of bankruptcy only to report the worst financials in the industry and you have the nerve to bash anyone!

For years, UA saw themselves as invincible and yet they fell. 3 of the 4 airlines that have filed bankruptcy this decade managed to take the process seriously and turn themselves around dramatically. UA has just blown the best chance of turning around their airline the industry will likely be given since it is rare to see back to back years of strong profitability.

While I take no delight in it, UA's demise may come faster than even if I predicted. I suggest you get a little afraid about failing and go fix what's STILL wrong!

 

[artiefufkin1]

I had hoped they would have commented on June figures only. I was thinking mainline non-fuel CASM would have been around 6.5 but looking at the Quarterly number it was only 6.9.

 

[FWAAA]

WorldTraveler: Congrats on the 7.05 mainline CASM. That's impressive.

One thing jumped off the page at me when looking at the quarterly report, however, and that's the exclusion of $79 million of interest owed. $227 million was included but the financials say that contractual interest in the second quarter was $306 million.

The basis for excluding $79 million of interest owed is beyond my comprehension. Could you help us out? I mean, if you count all $306 million of interest, the mainline CASM jumps up a bit. Quite a bit, actually.

Is that interest excluded from the results because DL isn't going to pay it?

One other thing: For some reason, DL likes to hide the ball when it comes to discussing something everyone else mentions in their quarterly reports: Mainline Yield. DL underscores the consolidated yield, but that includes the very high yield that most regional jet routes command. You wouldn't have the mainline yield computed, would you?

Anyway - pretty good results.

 

[jbguppy]

I'll repeat - if you want to deny DL is making money today because of their restructuring charges, then you have to acknowledge that they will have a massive profit a year from now when they emerge from bankruptcy. You can't have it both ways.

As critical as I was (and am) of United, I acknowledged when they had operational profits (small and infrequent as they were) during bankruptcy but I also didn't get carried away with the $20B profit they reported when they emerged from BK.

DL still reported an operating profit margin that was 5 times larger than UA even though UA spent over 3 years and bankruptcy and emerged six months ago. In fact, UA's operating margin was dead last. Your unwillingness to acknowledge DL's financial superiority over UA belies UA's CONTINUED inability to run an airline with even average profitability.

Operating profit margin 5 times that of UA's??? Show me the numbers, cite specific sources. UA's operating profit in the 2nd quarter was about 260 million on 5.1 billion in revenue, DAL showed about 370 on 4.8 billion or so. Better numbers for DAL, but a cursory view of the releases show some charges at DAL that are not being taken due to restructuring.

In no way 5 times larger???? Your ruin your own credibility by spinning yarns about huge profit margins that don't exist.

JBG

 

[WorldTraveler]

JB,
see my note on the other thread. The 5X calculation is incorrect...

my apologies.


FWAAA,
I presume DL doesn't intend to pay the interest it has excluded which probably means it is unsecured debt. While I loathe stiffing someone, that is a part of the bankruptcy process. DL asked its unsecured creditors twice to restructure DL's debts before filing for BK but they chose not to... now they are getting nothing.

DL had previously said it had $4B in unsecured debt which amounted to several hundred million dollars per year in debt payments which will not be paid. That is a significant reduction in DL's expenses.

 

[artiefufkin1]

Just wanted to give you an idea of where Delta stands as of the last Quarter. Keep in mind none of these airlines are incurring income taxes as most LCCs would. I'll correct for that when I post their margins later.

CO 5.9% net profit margin excluding special charges.
AA 4.9%
DL 3.8%
UA 2.8%

 

[boxer]

Just wanted to give you an idea of where Delta stands as of the last Quarter. Keep in mind none of these airlines are incurring income taxes as most LCCs would. I'll correct for that when I post their margins later.

CO 5.9% net profit margin excluding special charges.
AA 4.9%
DL 3.8%
UA 2.8%

Which of the above is BK?

What is your point?

 

[artiefufkin1]

All pre tax margins.

LCC 10.1%
AAI 9.7%
LUV 9.4% less hedging
CO 5.9%
NW 5.4%
AA 4.9%
DL 3.8%
UA 2.8%
F9 2.3%