Will leaner Delta resume it's attack on US Airways

[gso-crew]

Delta Air Lines Swings to Profit of $1.77 Billion After It Emerges From Bankruptcy Protection

ATLANTA (AP) -- Delta Air Lines Inc., the nation's third-largest carrier, cited a 5.5 percent gain in sales as it reported Wednesday that it swung to a profit in the second quarter, which saw it emerge from bankruptcy after shaving billions of dollars in costs.

In bankruptcy, Delta shed billions in costs and restructured the carrier's operations. It also survived a hostile takeover bid by Tempe, Ariz.-based US Airways Group Inc.

After exiting bankruptcy, Delta unveiled plans for a new paint job for its planes, featuring the company's three-dimensional red logo flying across a blue background on the tail of aircraft.

Besides finding a new CEO, Delta's board also must decide whether to sell or spin off regional feeder carrier Comair. The airline has not provided a specific timetable for that decision.

 

[IMisstheAladdinTrays]

Delta Air Lines Swings to Profit of $1.77 Billion After It Emerges From Bankruptcy Protection

ATLANTA (AP) -- Delta Air Lines Inc., the nation's third-largest carrier, cited a 5.5 percent gain in sales as it reported Wednesday that it swung to a profit in the second quarter, which saw it emerge from bankruptcy after shaving billions of dollars in costs.

In bankruptcy, Delta shed billions in costs and restructured the carrier's operations. It also survived a hostile takeover bid by Tempe, Ariz.-based US Airways Group Inc.

After exiting bankruptcy, Delta unveiled plans for a new paint job for its planes, featuring the company's three-dimensional red logo flying across a blue background on the tail of aircraft.

Besides finding a new CEO, Delta's board also must decide whether to sell or spin off regional feeder carrier Comair. The airline has not provided a specific timetable for that decision.

Billion?

 

[BoeingBoy]

Billion?

Yes, with a B. Normal when exiting BK since all the debt, contracts, etc, that were shed show up as one-time gains.

Jim

 

[delta777]

Minus all the accounting gains, the net profit was $274 million, not bad at all.

 

[longing4piedmont]

Resume????

If you and Dave thought SW was coming to kill you, you haven't seen anything yet. Lots of pissed off people who work on Virgina Ave........and the only one to blame is DoUgIe.

Minus all the accounting gains, the net profit was $274 million, not bad at all.

Operating profit was a very nice $490 million and that included the charge for $79 million in profit sharing. Given the load factors I'm seeing and fares they are getting, the 3rd quarter stands to equally good.

"Delta's consolidated passenger unit revenue (PRASM) was 11.78 cents, an increase of 5.6 percent in the June 2007 quarter compared to the same period in 2006"....."Excluding expenses from profit sharing and bankruptcy-related professional fees, mainline non-fuel CASM was 6.93 cents, a decline of 0.6 percent." Humm, looks like they may have a management team that actually knows how to RUN and airline.

I wonder where the US numbers will come in at.

 

[legacy-to-LCC]

Operating profit was a very nice $490 million and that included the charge for $79 million in profit sharing. Given the load factors I'm seeing and fares they are getting, the 3rd quarter stands to equally good.

not to mention all of our premium flyers who have commuted their premium business to delta because of DoUgIe's inability to run a reliable and quality airline.

 

[longing4piedmont]

not to mention all of our premium flyers who have commuted their premium business to delta because of DoUgIe's inability to run a reliable and quality airline.

lol.... I know that I have personnaly helped about 10 folks who average around $30,000 a year make the move.

 

[FWAAA]

Yes, with a B. Normal when exiting BK since all the debt, contracts, etc, that were shed show up as one-time gains.

Jim

Exactly. I seem to remember UAL reporting a bankruptcy-exit paper "profit" of over $20 Billion when it emerged from Ch 11.

 

[BoeingBoy]

I don't remember the number but it was definitely large. US also reported well over a Billion profit when it emerged from BK1, but since so much had been cut already there wasn't that big a paper gain coming out of BK2.

Jim

 

[luvthe9]

LCC numbers come out the 26th I think around noon or 1pm.

 

[DLFlyer31]

Resume????

If you and Dave thought SW was coming to kill you, you haven't seen anything yet. Lots of pissed off people who work on Virgina Ave........and the only one to blame is DoUgIe.

I actually don't think DL will do that much to US. First, DL's loadfactors are already so high, they don't have a lot of room to steal most of US's customers. Second, DL continues to cut domestic capacity...this actually benefits US as US is primarily a domestic carrier. Third, DL is actually trimming back in some smaller US markets. DL will be leaving ERI and BGM soon. Also, DL's experiment to siphon traffic from PHL via ILG hasn't worked and ILG is being axed.

US has plenty of problems, but DL really isn't a big one.

 

[delta777]

I actually don't think DL will do that much to US. First, DL's loadfactors are already so high, they don't have a lot of room to steal most of US's customers. Second, DL continues to cut domestic capacity...this actually benefits US as US is primarily a domestic carrier. Third, DL is actually trimming back in some smaller US markets. DL will be leaving ERI and BGM soon. Also, DL's experiment to siphon traffic from PHL via ILG hasn't worked and ILG is being axed.

US has plenty of problems, but DL really isn't a big one.

I couldn't agree more, DLFlyer31. As was stated, DAL has and continues to pull down domestic market capacity. There's simply too much competition slugging it out over too few dollars. As for us "resuming our attack" on LCC, i think that by and large, the venom that DAL employees spewed towards LCC during the hostile takeover attempt ws aimed squarely at Doogie.

 

[Be Careful What You Wish For.]

Lots of pissed off people who work on Virgina Ave.

Better folks then DAL have tried before. Come to think of it when DAL was healthy they gave it a go. DAL might want to keep on their toes. They were caught flat footed once before.

 

[delta777]

Better folks then DAL have tried before. Come to think of it when DAL was healthy they gave it a go. DAL might want to keep on their toes. They were caught flat footed once before.

Good point. However, this time the enemy isn't outside forces, rather they appear to be the inept management in Tempe.

 

[28yrsnojob]

u should move out of every city under 10000 enplanements
they are only losing profits