Delta Narrows Jan. Loss to $109 Million

[FA Mikey]

Air carrier Delta Air Lines Inc. said Friday its January loss narrowed to $109 million from $300 million a year ago, a decline of 64 percent.

The company also said it is on course to emerge from Chapter 11 bankruptcy in the spring.

Before certain reorganization credits, the company lost $115 million for the month. As of Jan. 31, Delta had $3.6 billion of cash, cash equivalents and short-term investments, of which $2.6 billion was unrestricted.

 

[PhxMama]

Can someone explain what this really means? I dont have a clue. Should we be happy for Delta because they are losing less? Or we still feel bad that they are losing 109 million in one month? With all the costs involved in restructuring, is this good or bad? Again, Im not sure what this means in laymans terms. Help. Mama

 

[NYCDelta]

Can someone explain what this really means? I dont have a clue. Should we be happy for Delta because they are losing less? Or we still feel bad that they are losing 109 million in one month? With all the costs involved in restructuring, is this good or bad? Again, Im not sure what this means in laymans terms. Help. Mama

It means there is still work to do. As I've said before, if we were out of BK and still posting losses-I'd be more concerned. There are still major leases that have not yet been renegotiated. I also believe our BK would have taken much longer, i.e. UAL, but management wants to hurry and get out before someone else approaches the creditors and tries to buy us.
Lastly, I think we need to improve revenues. You can only cut so much. The old adage "you need to spend money to make money" is true.

 

[FWAAA]

The only airlines that report their financials monthly are those in Ch 11; everyone else reports quarterly.

For all we know, all airlines - even Southwest lost money in January - but will make it up in Feb and March.

Bottom line: I don't pay attention to monthly operating results of the bankrupt; I only care about annual profits or losses (as even profitable airlines sometimes lose money or have crappy profits on a quarterly basis).

 

[Itestwell]

The only airlines that report their financials monthly are those in Ch 11; everyone else reports quarterly.

For all we know, all airlines - even Southwest lost money in January - but will make it up in Feb and March.

Bottom line: I don't pay attention to monthly operating results of the bankrupt; I only care about annual profits or losses (as even profitable airlines sometimes lose money or have crappy profits on a quarterly basis).

So we are to assume that most of this loss was due to BK related items, right?

 

[NYCDelta]

So we are to assume that most of this loss was due to BK related items, right?

Not necessarily. Most of this loss was probably related to January being the softest month of the year for airline travel. I know the storms in the northeast didn't help jetBlue any, either. I would imagine that hurt us as well, given our JFK hub is a mess on good weather days. At any rate, I'll be glad to be out of BK. At least then you only have to listen to financial gains (or disappointments) 4 times a year.

 

[FWAAA]

So we are to assume that most of this loss was due to BK related items, right?

No, not at all. In fact, for January, DL actually lost more money, $115 million, and bankruptcy items (credits this time) trimmed the net loss to $109 million. So bankruptcy items made the loss appear slightly smaller, not larger, as has often been the case during DL's Ch 11 stint.

As NYCDelta said, the fact that it's January may have had everything to do with it. Soft revenue, winter storms, etc.

 

[Itestwell]

No, not at all. In fact, for January, DL actually lost more money, $115 million, and bankruptcy items (credits this time) trimmed the net loss to $109 million. So bankruptcy items made the loss appear slightly smaller, not larger, as has often been the case during DL's Ch 11 stint.

As NYCDelta said, the fact that it's January may have had everything to do with it. Soft revenue, winter storms, etc.

So it is probably safe to assume that US, B6, AA, etc all lost similar amounts due to storms and soft revenue?

 

[PhxMama]

Thanks for all responses. Do we need to sit tight until the end of the first quarter to see Deltas real financial situation? Or first quarter out of BK? Any real date that you think would be out long term enough to see Deltas real future prospects? Thanx again!

 

[WNrforlife]

Thanks for all responses. Do we need to sit tight until the end of the first quarter to see Deltas real financial situation? Or first quarter out of BK? Any real date that you think would be out long term enough to see Deltas real future prospects? Thanx again!

PHXMama - Doogie called, and needs a ride home from the bar. This last lawsuit fromt he Pilot's union has him a little on edge.

 

[NYCDelta]

So it is probably safe to assume that US, B6, AA, etc all lost similar amounts due to storms and soft revenue?

I think jetBlue put their loss at $30 million due to the storm fiacso.

Thanks for all responses. Do we need to sit tight until the end of the first quarter to see Deltas real financial situation? Or first quarter out of BK? Any real date that you think would be out long term enough to see Deltas real future prospects? Thanx again!

I would think a full year outside of BK would paint a pretty accurate picture, but I'm not a financial expert. If you file BK, restructure, and then still lose money-I think there might be a problem.
It doesn't sound like management is too worried, they announced another F/A recall today (300, for a total of 1,500 this year) and also announced that Delta agents will be taking over the ground handling for ASA in Atlanta (that's gonna cost 'em).

 

[PhxMama]

PHXMama - Doogie called, and needs a ride home from the bar. This last lawsuit fromt he Pilot's union has him a little on edge.

I really thought the Delta merger was a done deal. Obviously, I was waaaay wrong!! Coming from the HP side of the US merger, we still have alot work to do here so its probably more of a relief than anything else for most of us that it didnt happen. I believe it would have been a good thing but it didnt happen and having said that many of us are curious as to what Delta's future holds. How will Deltas future impact the rest of the industry? First, what shape will Delta be in after coming out of bankrupcy? Aside from that, I belive Doug's wife will be picking him up from the bar. On second thought, Im sure he's "grounded" for awhile. Regards to all, Mama

 

[Freighterguynow]

the company lost $115 million for the month.

$3.7 million a DAY in the red?

Thank goodness that merger tanked.