DAL has best earnings upside revisions in industry

[WeAAsles]

What you also don't get is I DO NOT want Profit Sharing. I want AA to pay down its debt and shore up the foundation of the house I work in.

I'll get my rewards as an employee and shareholder thank you very much.

 

[WorldTraveler]

just because I quoted you doesn't mean everything I wrote is a response to you.

what I have said and which is absolutely true is that DL employees DO participate in the reduced operational cost of fuel. They do not have their profit sharing reduced because of DL's hedge losses or because of the cost of the refinery.

that is the way DL's profit sharing program is set up.

they enjoy the benefits of operational profits but do not pay for accounting losses or long-term investments in the company

AA employees get NO UPSIDE based on the improved performance of the company.

And that will become all the more apparent next Tuesday when AA very likely will report the best net profit in the industry - but will be getting pay raises that fall far short of DL's pay plus profit sharing totals.

DL's system couldn't be any more employee focused while AA's system couldn't be more executive and stockholder enriching focused.

 

[700UW]

The upside is a higher wage and job security than their DL counterparts, their upside is having a Collective Bargaining Agreement and have a better QOL as there are rules to follow, unlike DL.
 
Didnt hear of AA or US FAs having to sleep on planes during bad weather, unlike DL FAs who had too.

 

[WeAAsles]

We gain NO UPSIDE? You truly are a one dimensional thinking fool. Employees will be gaining upside in the fact that AA will be able to pay down debt more quickly, invest in it's products and service, and be able to attract more valued customers through those improvements. That will shore up the foundation for those employees futures when the next downturn comes. 

I guess you see little value in that? The reality that AA needs to spend the next few years paying down debt just as DL did after they emerged from BK, 7 years ago.

On the stock side I have read that not many investors are pleased that Delta offers out PS instead of rewarding them for investing in the airline and I can understand their dismay as a stock investor myself.

Personally speaking I have gained FAR more value from the original LCC shares I purchased that changed over to AAL shares then ANY DL FA or Ramper. 15% is chump change compared to the value I have received the last year. Thank you Doug Parker and Scott Kirby. I tried to get many others to follow my lead on that, some did most didn't. That's unfortunate that people don't know how to value a "TOTAL COMPENSATION PACKAGE". 

 

[WeAAsles]

The upside is a higher wage and job security than their DL counterparts, their upside is having a Collective Bargaining Agreement and have a better QOL as there are rules to follow, unlike DL.
 
Didnt hear of AA or US FAs having to sleep on planes during bad weather, unlike DL FAs who had too.

Precisely. The intangible benefits that people like WT can never talk about. My QOL is phenomenal. No sleeping on planes or ready reserve for me.

 

[FrugalFlyerv2.0]

the truth is that you and others are and have been dead wrong about the refinery.

DL specifically noted that the PROFITS which the refinery generated in the most recent quarter are directly because of the INCREASED crack spread which has resulted even with the increase in crude oil prices.

but your comment also raises the point that the cost of fuel IS an operational issue; DL's hedge losses and investment in the refinery are not

DL employees HAVE participated in DL's below average fuel costs because it has increased DL's operational profits.

DL employees HAVE NOT had their profit sharing reduced because of DL's investment in the refinery or because of their hedge losses.

thank you once again for pointing out the superiority of DL's employee focused model of compensation that makes sure that DL employees receive their profit sharing EVEN IF the company strategic plans take time to develop or require investment.

AA employees in contrast will enjoy NONE of AA's enormous profits in 2015 as fuel prices drop and AA participates fully in those price drops.

AA executives and those nasty shareholders will benefit handsomely, though.

 
Deny.  Deflect. Spin.
You're so predictable.
 

  

 

[WeAAsles]

Deny.  Deflect. Spin.
You're so predictable.
 

  

Guess I'm one of those nasty shareholders as well? What a conundrum for me. Employee and shareholder.

 

[diamondcutter]

just because I quoted you doesn't mean everything I wrote is a response to you.what I have said and which is absolutely true is that DL employees DO participate in the reduced operational cost of fuel. They do not have their profit sharing reduced because of DL's hedge losses or because of the cost of the refinery.that is the way DL's profit sharing program is set up.they enjoy the benefits of operational profits but do not pay for accounting losses or long-term investments in the companyAA employees get NO UPSIDE based on the improved performance of the company.And that will become all the more apparent next Tuesday when AA very likely will report the best net profit in the industry - but will be getting pay raises that fall far short of DL's pay plus profit sharing totals.DL's system couldn't be any more employee focused while AA's system couldn't be more executive and stockholder enriching focused.

You have yet to prove with facts that AA will fall short of DL's pay !!!!

 

[robbedagain]

come on WeAA   Don't ya know  that what DL does its perfect   its excellent   but what AA UA or any other airline does  IT JUST DOESNT MAKE SENSE!!!   Of course that's only in the eyes of one delusional FORMER AIRLINE MGMT CLOWN

 

[jimntx]

Don't forget that DL's revenue is quality revenue (whatever that means) compared to AA and UA who only pull in common, everyday revenue.  I thought that a dollar of revenue is a dollar of revenue, but evidently not according to the expert. 

 

[WorldTraveler]

Don't forget that DL's revenue is quality revenue (whatever that means) compared to AA and UA who only pull in common, everyday revenue. I thought that a dollar of revenue is a dollar of revenue, but evidently not according to the expert.

it means that DL gets 113% of the average fares that the rest of the industry receives on the domestic system and 107% on the int'l system.

apparently DL's so-called 2nd tier hubs are mighty profitable... along with DL's ability to get the same or better revenue even in competitive markets like NYC, CHI, and LAX
 

We gain NO UPSIDE? You truly are a one dimensional thinking fool. Employees will be gaining upside in the fact that AA will be able to pay down debt more quickly, invest in it's products and service, and be able to attract more valued customers through those improvements. That will shore up the foundation for those employees futures when the next downturn comes. 

I guess you see little value in that? The reality that AA needs to spend the next few years paying down debt just as DL did after they emerged from BK, 7 years ago.

On the stock side I have read that not many investors are pleased that Delta offers out PS instead of rewarding them for investing in the airline and I can understand their dismay as a stock investor myself.

Personally speaking I have gained FAR more value from the original LCC shares I purchased that changed over to AAL shares then ANY DL FA or Ramper. 15% is chump change compared to the value I have received the last year. Thank you Doug Parker and Scott Kirby. I tried to get many others to follow my lead on that, some did most didn't. That's unfortunate that people don't know how to value a "TOTAL COMPENSATION PACKAGE".

 
yeah, AA employees benefit from a stronger balance sheet... but a stronger balance sheet does nothing to improve your salary.

nothing.

and AA is buying new aircraft faster than any other US airline which means the reduction in that balance sheet isn't going to happen near as fast as you might think.


and DL investors are more than likely not happy that DL is paying as much to its employees in profit sharing. but that is Richard Anderson's problem to deal with.

It is Doug Parker's job to face AA employees and tell them why AA's program of DL plus 7% still leaves them underpaid relative to their peers at DL.

and as for those pesky investors, you can let us know which US airline has returned more to stockholders in the past year. WN has a very long track record over time but I'm pretty sure that DL has given them a run for the title over the past several years.

and you didn't miss that DL stock was in the top tier of stocks on the S&P 500.

silly me, though, AA isn't in the S&P 500.


---------------------

also looks like DL is also adding the 717 to at least part of the LAX-SFO schedule, exactly as I expected.

DL's growth at LAX continues, including by upgauging which is what I said would be their primary means of growth given gate limitations.

 

[700UW]

You truly dont grasp the concept.
 
AA's employees do, every item in a CBA has a cost associated to it.
 
You would think a FORMER numbers guy would understand that.

 

[WorldTraveler]

I'm not sure what you are arguing about.

Yes, every item in a CBA has a cost.

what was being discussed is that DL employees benefit from a stronger balance sheet, which reduces interest payments.

AA employees do not. A stronger balance sheet without profit sharing puts the company on better financial footing but no one realistically believed that AA was at risk or will be.

and DL's policy of buying used aircraft like the 717 allows them to expand their network such as in LAX at far lower costs.

 

[topDawg]

Yeah, not so certain about that. By what I've heard from people much closer to Glen than anyone here, you'd have to work really, really hard to find a major international route served by either AA or UA that isn't in network planning's 5 year plan.

I can think of plenty. 
MIA-basically anything
SFO-basically anything
ORD-basically anything.....
just saying.... 
 

 
Anderson specifically stated it is a DL operated station that will have 12 employees doing line maintenance without a hangar.
 

Where did he say its a Delta operated station? 
 
and I assume this now means Delta has a maintenance base in PVG just like NRT   

 

[topDawg]

just because I quoted you doesn't mean everything I wrote is a response to you.

what I have said and which is absolutely true is that DL employees DO participate in the reduced operational cost of fuel. They do not have their profit sharing reduced because of DL's hedge losses or because of the cost of the refinery.

that is the way DL's profit sharing program is set up.

they enjoy the benefits of operational profits but do not pay for accounting losses or long-term investments in the company

AA employees get NO UPSIDE based on the improved performance of the company.

And that will become all the more apparent next Tuesday when AA very likely will report the best net profit in the industry - but will be getting pay raises that fall far short of DL's pay plus profit sharing totals.

DL's system couldn't be any more employee focused while AA's system couldn't be more executive and stockholder enriching focused.

Okay, not far far from Delta's numbers. I did the math on Delta + 7% compared to Delta + profitsharing....
Its not that much money. For a AMT is ~5,000 bucks,
 
but I would sell my profit sharing for all of the fleet minus one type of HMVs coming in-house. 
 
 
but again, Thats because I look at the big picture, you look at the "trying to make Delta look better" picture.