Delta and United Drag Down Airline Sector

[jimntx]

http://www.marketwatch.com/story/delta-united-drag-down-airline-sector-2014-07-02
 
How is this possible?  Delta?  United, sure, but Delta?  The airline that is above everyone else in everything including revenue per Mountain Dew Sold.  (RMDS)
 
Commentary from UBS analysts here:  http://blogs.barrons.com/stockstowatchtoday/2014/07/03/what-deltas-disappointment-means-for-american-airlines-united-continental/?mod=yahoobarrons&ru=yahoo

 

[WorldTraveler]

you're a day, Jim.

very short summary: DL released its monthly results yesterday, the first US carrier to do so.

analysts see DL's results as a bellwether for the US industry, esp. since DL's comments mirror what LH said a couple weeks ago.

 

[Glenn Quagmire]

http://www.marketwatch.com/story/delta-united-drag-down-airline-sector-2014-07-02
 
How is this possible?  Delta?  United, sure, but Delta?  The airline that is above everyone else in everything including revenue per Mountain Dew Sold.  (RMDS)
 
Commentary from UBS analysts here:  http://blogs.barrons.com/stockstowatchtoday/2014/07/03/what-deltas-disappointment-means-for-american-airlines-united-continental/?mod=yahoobarrons&ru=yahoo

DL's results were "meh", or underperforming of what was expected.

Those merger synergies have played out and other carriers will be capitalizing at the expense of a few widgets.

 

[WorldTraveler]

DL OUTPERFORMED the industry for years esp. relative to AA which threw lots of capacity into the market depressing their RASM performance.

Before you proclaim how great AA is doing, you might also consider where its absolute RASM ranks.

DL's absolute consolidated RASM is still the highest among US carriers at 14.24.

AA's is the lowest at 13.78 and that is for the 1st quarter of 2014 so it includes US' shorter haul operations compared to AA.

And DL's RASM is not sitting still either. It is still growing.

DL's RASM premium to the industry isn't due to merger synergies; they are due to strategies to grow revenue. The LGA slot deal and the SEA hub were done well after the merger was completed.

Further, we have yet to see the result of competition at DCA and N. Texas as a result of the slot divestiture and the fall of Wright.

AA is still in the honeymoon period of its merger and we have yet to see them face most of the real challenges that are part of mergers.

Finally, add in that AA has $750M in revenues tied up in revenue that it may not see... that is almost 2% of AA's annual revenues... not a small number.

At some point they will have to write it down and restate revenue accordingly.

AA is doing well. I am not doubting that.

there is no evidence that AA's success is coming at DL's expense.

if anyone, it is UA that is leaking revenue to both AA and DL.

 

[Kev3188]

One airline to rule them all...

 

[700UW]

DL is the Genghis Khan or Alexander the Great of the Airline business, they rule the world!
 
 
NOT

 

[WorldTraveler]

One airline to rule them all...

no one said anything about anyone ruling any thing.


It must be terrible to live in a world where you can't acknowledge that your employer generates the highest revenue per seat mile among large US carriers.

If you could read financial reports, you would know it is true.... but I'm guessing you aren't really interested in knowing any truth that shows that your employer actually does anything well.

 

[Kev3188]

no one said anything about anyone ruling any thing.


It must be terrible to live in a world where you can't acknowledge that your employer generates the highest revenue per seat mile among large US carriers.

It's terrible to come to I site I enjoy and having to wade through the same hagiographies from you day in/day out.

As for revenue generation, who do you think makes that happen, the actual employee, or the retiree?
 

If you could read financial reports, you would know it is true.... but I'm guessing you aren't really interested.

Of course not. I'm just a ramper, right? That makes me barely literate, let alone a fan of metrics! What could I possibly know about any of that? Besides, those numbers are scary & hard to grasp... 🙄

 

[WorldTraveler]

if you could read financial reports or had any interest in knowing the truth, you would have at least bothered to confirm what I said.

it's all public information

again, the simple fact is that DL has the highest absolute passenger RASM among any large US carrier.

you are free to mock it, throw stones at the messenger, or anything else you want to do, but it is the truth.

 

[Kev3188]

...And once again the larger point sails right over your head...

 

[WorldTraveler]

if you don't like the response you got, then you might take a step back and look at what you posted.

YOU turned a business discussion into a pi78ing match with your snarky remark.

But it's always someone else's fault, right?

 

One airline to rule them all...

furthermore, the whole notion of what happened yesterday is lost if you or Q bothered to look at the past week.

If you did, you would see that DL's stock performance was the LEAST NEGATIVELY IMPACTED compared to AA and UA>

In fact, AAL performed the WORST of the big 4 US carriers this week.

but that wouldn't fit your narrative so we will just ignore it, ok?

http://finance.yahoo.com/echarts?s=DAL+Interactive#symbol=DAL;range=5d

 

[Kev3188]

Oh please, It wasn't a discussion (it never really is), it was a lecture...

P.S. Way to be derivative!

 

[WorldTraveler]

only because you are completely incapable of engaging in a discussion in which someone else who you don't want to believe is right or if the truth is contrary to your narrative.

so let's recap.

DL's absolute passenger RASM is the highest among large US carriers.

DL stock was least affected by the negative news of the week.

anything else?

 

[Kev3188]

anything else?

Yes.

WT continues his push for "board domination" at the expense of letting threads breathe...

 

[700UW]

Kinda of reminds me of the Old Saturday Night Live skits, DELTA DELTA DELTA!