Delta Loss Widens

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Dec 5, 2003
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Press Release Source: Delta Air Lines


Delta Air Lines Reports September 2004 Quarter Results
Wednesday October 20, 7:35 am ET


ATLANTA, Oct. 20 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL - News) today reported results for the quarter ended Sept. 30, 2004, and other significant news. The key points are, Delta:
-- Reports a third quarter net loss of $646 million, or $5.16 loss per
share.

-- Excluding non-cash charges described below, reports a third quarter net
loss of $592 million, or $4.73 loss per share.

-- Ends quarter with $1.45 billion in unrestricted cash.

see the rest at:

http://biz.yahoo.com/prnews/041020/nyw122_1.html

These results are in line with Delta's guidance from last week (as would be expected) so no real news.

Couple notes:
1. DAL managed to increase revenue through producing and selling more seats in spite of average revenue deterioration. As I've pointed out before, keeping revenue from decreasing is vital in order to maintain a viable business; UA and US have not been able to do that over the past couple years - although I do think US' transformation plan is geared to do that. In spite of $50M in lost revenue due to hurricanes, revenue was increased by flying 10.4% more RPMs with only 1.6% more aircraft - a sign of increasing efficiency.
2. DAL's problem is clearly costs. Given fuel prices, the cost cuts announced will
just get Delta to breakeven which is clearly not acceptable.
3. The MD11 proceeds have already been deposited and bolstered Delta's cash past the $1.5B mark but if Q4 cash burn is similar to Q3, Delta will have a hard time keeping acceptable cash levels until the employee cost cuts kick in by Jan (assuming a pilot deal is reached which does appear more likely since reports are that talks are focused on reducing the length of the concessions rather than the substance of them). The debt restructuring has got to move out just about all debt payments and cash requirements for the next 9 months or more.
4. Delta has met its pension funding requirements but stated it intends to apply for reductions allowed under the law passed this summer - indications that the company does not intend to dump its pension obligations.

While some will continue to see Delta in a negative light, these reports indicate that Delta is on track to turn itself around as soon as it gets the cost cuts it is seeking. A careful analysis of results shows that optimism in Delta's future is not kool-aid drinking but is justified.
 
UnitedChicago said:
You just keep telling yourself that if it makes you feel better.
[post="192984"][/post]​
I wish everyone at Delta the best and I hope something is done about these fuel prices.
 
Georgia is all Republican....these Delta Boys will vote this "Numb Nutz" (W) in again. If it ain't work'n guys...change it!!!!! Or drink more "Kool Aid"! It's about to turn ugly!!
 
No Dog, I don't blame Bubba for everything, but I do think $55.00 dollars per barrel for crude is , as you would say...Insane!! Want more of the same...vote "Bubba"!! The national deficit is as big now as Delta's debt!! Have another "Kool Aid" please...in a tall glass with a lot of ice!! Maybe the government should re-look at regulation, atleast price regulation rather then looking for weapons of mass destruction!! We have the airlaine destructing right here in the good old USA that he claims to love!!!!
 
Flufdriver said:
No Dog, I don't blame Bubba for everything, but I do think $55.00 dollars per barrel for crude is , as you would say...Insane!! Want more of the same...vote "Bubba"!! The national deficit is as big now as Delta debt!! Have another "Kool Aid" please...in a tall glass with a lot of ice!! Maybe the government should re-look at regulation, atleast price regulation rather then looking for weapons of mass destruction!! We have the airlaine destructing right here in the good old USA that he claims to love!!!!
[post="193028"][/post]​


At the risk of turning away from the topic, just what would JFK2 do differently, Flufdriver? Would he roll back the regulations that prevent cheaper oil? Would he allow drilling in 1% of ANWR, like the President asked to do, only to be voted down by Kerry and the uber-libs? Would he roll back the regulations that have made building new domestic refineries cost-prohibitive? The liberals were the ones who have increased our dependance on foreign oil, not the president. The libs used the president's history in the oil business as an excuse to keep prices high, and now they try to blame the president because the prices have skyrocketed. Nice try, but no, the reality is much different.

Don't forget, as we've been forced by the dems to rely more on foreign oil, the Chinese have increased their demands dramatically as well. Clinton let them join the WTO, and allowed them to begin building products for the rest of the world. The energy to do that had to come from someplace. It's coming from the same place we buy oil from. Two countries buying the same product, both needing as much of it as possible to keep their economies going. Gee the price keeps going up, go figure.

Maybe today's announcement will get the pilots to wake up and see the ground coming up at them. It's ironic to me that this wouldn't be as much of an issue today if the company hadn't caved and opened the 10 year 7.5 era contract up. Losses wouldn't be as big, and the debt wouldn't be as friggin huge.
 
Oh brother...another Delta "Kool Aid" drinker........your right, everythings fine...just fine!!! I'm not saying anything about Kerry...it just ain't working. But I forgot, you probably work for Delta...everythings fine!!! Cash burn of 6 mil a day...alot of it out the tailpipe!! Over a billion dollar loss the last three or four years. Everythings fine. Cash on hand BELOW what the gurus say is needed to declare BK!

Anyway, if "Bubba" was so great, why after four years of his crap is it such a close race???? Doesn't say much for the president...! You would think he should have a huge lead by now.

It's about to get ugly! Vote "Bubba" and get what you deserve...we already see what to expect!! No thank you!
 
Flufdriver said:
Oh brother...another Delta "Kool Aid" drinker........your right, everythings fine...just fine!!! I'm not saying anything about Kerry...it just ain't working. But I forgot, you probably work for Delta...everythings fine!!! Cash burn of 6 mil a day...alot of it out the tailpipe!! Over a billion dollar loss the last three or four years. Everythings fine. Cash on hand BELOW what the gurus say is needed to declare BK!
Anyway, if "Bubba" was so great, why after four years of his crap is it such a close race???? Doesn't say much for the president...! You would think he should have a huge lead by now.
It's about to get ugly! Vote "Bubba" and get what you deserve...we already see what to expect!! No thank you!
[post="193061"][/post]​

7.5victim, did you notice how Flufdriver didn't address any of the excellent points you made? Typical Dem. Just keep coming out with crap about how Bush will reinstitute the draft, abolish social security, is responsible for the high price of oil (couldn't possibly be because of the factual items you cited, yeah right), yada yada yada. Meanwhile, if you vote for Kerry, everyone will have health care and a good job (a real job, not the non-jobs Laura Bush has had as a school teacher, librarian, housewife and mother :rolleyes: ). The crippled will walk again (hey, perhaps Al Gore can find the cure now that he's finished inventing the internet) and terrorism made into a nuisance (assuming Jacques Chirac and the U.N. give us the go ahead).
 
Ag...like I said, I "W" was doing such a great job after fours years, "Why is it such a close race"??? Typical "Rep"..."If I'm doing great...things are OK"!!! I don't have to answer the things commented on...the state of America speaks for it's self! Soon there won't be many airlines, we won't/can't afford gas for our cars and...I guess I can go out and apply with the many other millions looking for a job for one of those LOW wage jobs created!!! Your right...where doing great!! Just look at the deficit!!! LOL!!! You been listening to Rush and Shawn way to long.........have another drink of that "Kool Aid"!! After four years "Bubba" should have a huge lead in the polls if he was such a great leader....can't wait to hear your response, I'm sure you'll have one! Look forward to Nov 2.......
 
Flufdriver said:
Ag...like I said, I "W" was doing such a great job after fours years, "Why is it such a close race"??? Typical "Rep"..."If I'm doing great...things are OK"!!! I don't have to answer the things commented on...the state of America speaks for it's self! Soon there won't be many airlines, we won't/can't afford gas for our cars and...I guess I can go out and apply with the many other millions looking for a job for one of those LOW wage jobs created!!! Your right...where doing great!! Just look at the deficit!!! LOL!!! You been listening to Rush and Shawn way to long.........have another drink of that "Kool Aid"!! After four years "Bubba" should have a huge lead in the polls if he was such a great leader....can't wait to hear your response, I'm sure you'll have one! Look forward to Nov 2.......
[post="193319"][/post]​
You forgot to mention outsourcing of American jobs. Oh wait... The Heinz company has 49 of their factories in other countries. Geez, I thought you had us Fluf... ;)
 
Gee Vike...it's going on right now...in your own backyard. Didn't the all mighty DAL put res in India.......??? That's under your great leader "W"!!!! Talk about taking jobs....I called HP the other day....INDIA....I see George has a handle on it! Next time I'm at ALT...where do you guys buy that "Kool-Aid".,...Again....if "W" was doing such a great job after four years...why is the race so close if not tied. You guys keep avoiding that question!!!! If it AIN'T working....change it. Saw the AJC today...under your great leader "W", looks like BK is almost certain. Great.... more pay cuts and job losses under "W", yep. he's doing great. Well he a Dick are doing fine.

More "Kool-Aid" please, what does that stuff taste like anyway???? Chattiing with you Deltoids is like banging your head against the wall...Get the vaseline out buddy!!!!! See if "W" will help you out.

Can't wait until Nov 2............I love spending 2 dollars a gallon!!!!
 
Flufdriver said:
Gee Vike...it's going on right now...in your own backyard. Didn't the all mighty DAL put res in India.......??? That's under your great leader "W"!!!! Talk about taking jobs....I called HP the other day....INDIA....I see George has a handle on it! Next time I'm at ALT...where do you guys buy that "Kool-Aid".,...Again....if "W" was doing such a great job after four years...why is the race so close if not tied. You guys keep avoiding that question!!!! If it AIN'T working....change it. Saw the AJC today...under your great leader "W", looks like BK is almost certain. Great.... more pay cuts and job losses under "W", yep. he's doing great. Well he a Dick are doing fine.

More "Kool-Aid" please, what does that stuff taste like anyway???? Chattiing with you Deltoids is like banging your head against the wall...Get the vaseline out buddy!!!!! See if "W" will help you out.

Can't wait until Nov 2............I love spending 2 dollars a gallon!!!!
[post="193481"][/post]​
This has nothing to do with Kool Aid. Honestly, what would Kerry do different? It is a serious question.
 
Vike...I don't know...but it goes back to the old saying..."If it ain't broke don't fix it...I think it's broke. Look at the numbers...thousands losing the jobs and benefits cut, oil at it's highest price, airline industry destroying itself, companies in BK, personal BK at their highest. Our industry alone, we have thousands out of work and NEVER to come back. I don't know..for to many people the system is broke...real broke. I already lost $110,00 per year in pay...retirement gone and know hope of getting anything back...does Kerry have the answer. I don't know...do I...NO, if I did I wouldn't be here! If it's not working...change it. If you are happy with your situation and don't have any fears of that ever ending...your lucky and I also wouldn't want to change things. Even ALPA is wanting the change. Could it be worse...I don't know...but I think it's time for a manager change...was I better off four years ago....DAMN WELL BETTER BELIEVE I WAS>>>NOT EVEN CLOSE. If you are better or the same....things are about to change real big!! I hope you don't go through what I/We have but if you do...talk to me in a few and I"ll see if you still think things are going well. Sure would be nice to release some of the reserve fuel to the carriers to cushion the blow...prez doesn't even wink about doing something that would maybe help recover from this mess...Then why should he...he's doing well in the oil biz. Then again, isn't that what it is all about...the rich get richer!! Your right it is working. Us little guys are getting poorer by the minute.
I know you don't agree..and that's ok. Let's hope we all get through this no matter who is steering this thing!!

Enjoy..Fluf! Thanx for letting me ramble!
 
Flufdriver said:
Ag...like I said, I "W" was doing such a great job after fours years, "Why is it such a close race"???

For the obvious reason that Kerry starts with 40% of the population who are Dems and have a vitriolic hatred of Bush. Then you get another 6-7% who would normally not vote for Kerry but who get the crap scared out of them by the Dems. Folks depending on Social Security who believe Dem lies that Bush plans on abolishing it, draft age guys who believe Dem lies that Bush has a secret plan to reinstitute the draft, crippled people who believe Edwards' lies when he says if Kerry is elected, they'll walk again, etc. Blacks who believe that Bush must be the equivalent of Jefferson Davis, if they believe their own leaders like Jesse Jackson and Al Sharpton. Or just plain delususional idiots who don't realize it's totally illogical for middle-class folks to get huge tax cuts, the deficit to be greatly reduced or eliminated, and everyone to get great health insurance and great jobs. For you legacy airline employees (or furloughees), you think that Kerry is going to reinstitute airline regulation or somehow abolish all the LCC's? How is the cost of oil going to get reduced when the Dems won't even allow drilling for oil in Alaska in a patch of land the size of Dulles Airport (i.e. the total area of all proposed drilling sites equals that of Dulles Airport) or refuse to budge on environmental regulations which make it impossible to build new oil refineries? Will they somehow outlaw the purchase of oil by China or invade and take over the Saudi oil fields? You think tapping the strategic oil reserves would make a difference? It's been done before and would temporarily lower the gas price by pennies a gallon. But you guys can continue with your hatred of Bush and think he somehow stole the election. Forget the truth that many Florida voters just weren't smart enough to figure out how to use a punchcard and the Dems weren't able to throw out enough absentee ballots from the military voters who were overseas ensuring we still had a country which had free elections.
 

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