Delta records another very strong quarter

[WorldTraveler]

again, as the largest carrier, AA SHOULD post the highest earnings.

I have never said otherwise. Nor have I seen anyone else.

 

[Kev3188]

Thanks, Robbed!

Like I said on another thread, I'm just happy the discussion has turned to who will report the largest proift, instead of who is bleeding the most red ink...

 

[robbedagain]

anytime kev..  same here bro

 

[WorldTraveler]

Thanks, Robbed!

Like I said on another thread, I'm just happy the discussion has turned to who will report the largest proift, instead of who is bleeding the most red ink...

you are absolutely right, Kev.

profits are the oil that runs the free market economy.

The industry has suffered thru way too many losses.

It is great to see the industry profitable.

 

[WorldTraveler]

the transcript of DL's earnings call is available here
http://seekingalpha.com/article/2334145-delta-air-lines-dal-ceo-richard-anderson-on-q2-2014-results-earnings-call-transcript?part=single

highlights beyond what has been mentioned include DL's lowest cost of capital per aircraft, a statistic that says that the industry average fuel price for the quarter is $3.08 with DL 15 cents lower, a 13% RASM premium to the industry on the domestic system, DL recorded profits from the Virgin Atlantic ownership stake, SEA domestic RASM increased despite the new flights, and more

 

[eolesen]

because if you understood the corporate world, you would understand the psychology behind who goes when in the earnings cycle.

I'm sure DL enjoys having all the attention focused on them for a day, but before you wax poetic, you might want to consider that when a company releases their earnings is tied to when the audit committee of the respective Boards meet.

IIRC, the boards for AAL and LUV meet on the fourth Wednesday of the month, and they definitely have traditionally announced earnings on the fourth Thursday of the month following the close of the quarter.

And yes, all of the other relevant airlines (ALK, AAL, LUV, UAL) that get discussed on the boards are releasing their earnings on the 24th.

 

[WorldTraveler]

and any company can set its schedule when it wants. And the audit committees can only meet when, wait, there is something to audit. (canned laughter)


If you have been awake for any period of time, you will recall that since emerging from BK and completing the merger, DL has lead the industry in reporting.

DL is almost ALWAYS the first carrier to report traffic, including with the RASM and fuel information that becomes the benchmark that analysts use for the industry.

NO OTHER CARRIER EVEN BOTHERS TO REPORT BOTH FUEL AND RASM guidance on a monthly basis, and DL does it by the end of the 2nd full business day after the close of the month.

DL's comments in its traffic report have frequently been used to set the stage about RASM performance for the rest of the industry; DL's most recent comments about overcapacity and the World Cup elicited remarks from several analysts that they had not published specific to US carriers before.

Yes, today should be a banner day. Multiple airlines will report.

A couple key items to look for:

RASM growth - and where - domestic system should be strong for everyone

where there is weakness and who is adding capacity there (hint, hint - focus on AA TPAC results)

Cost growth - DL reported flat CASM growth; AA is expected to be the highest despite just coming out of BK.

Overall total CASM - AA's CASM lead among legacies could be replaced by a more cost conscience competitor

Fuel cost advantage - DL has already said it will beat the industry by as much as 15 cents per gallon.

Labor cost growth

Cash generation and debt levels

...

that should do for starters.

let me know by the end of the day how each carrier ranks on those areas and we'll see if DL wasn't quite comfortable with reporting first.

 

[eolesen]

Whatever, WT. You're obviously the expert, with your doctorate and all.

 

[WorldTraveler]

a doctorate has nothing to do with this board.

and it only was brought up by someone who wanted to poke at form in citations instead of deal with the issue that DL has repeatedly demonstrated the ability to move into highly competitive industry markets and get premium revenue.

It has happened in NYC - most recent DOT data shows that DL has picked up passengers in the transcon markets that AA decided they no longer want.

DL is growing its revenues and average fares to/from LHR.

DL is growing in SEA.

Even in LAX, DL is growing faster than any of the largest US airlines and DL for the most recent quarter came within a couple percent of AA's total revenue; if it weren't for the US acquisition, DL would bypass AA at LAX this year based on capacity that is currently being flown.

Stick to the facts and the topic.

This is your day to revel in what the new AA is doing.... they should post healthy profits after a trip thru BK, the reduced employee expenses, and by eliminating a competitor.

 

[eolesen]

Nah, not my day to celebrate. I contributed to their revenues, not their earnings.

While you're busy redefining history, do make it clear that someone else did indeed poke fun at your inability to cite someone else's work, but it was you that brought your multiple advanced degrees into the discussion. If you don't want people to comment on something, don't say it.

 

[WorldTraveler]

none of which changes that DL had an outstanding quarter and other carriers did as well.

Of note, AA is doing much of the same things to shore up its attractiveness as a an investment that DL has done - stock repurchases, dividends, debt repayments.

there is a reason why DL went first also highlights that, as I expected, AA lost its position as the lowest CASM carrier of the big 3 excluding fuel and AA paid 12 cents/gallon MORE for jet fuel.

 

[FWAAA]

there is a reason why DL went first also highlights that, as I expected, AA lost its position as the lowest CASM carrier of the big 3 excluding fuel and AA paid 12 cents/gallon MORE for jet fuel.

There you go, making things up again (as usual).
 
Delta paid $2.93/gal on a consolidated basis while AA paid $3.03/gal on a consolidated basis.   
 
On a mainline-only basis, your 12 cents is correct, but since DL and AA have to buy all the fuel used by their regionals, might as well factor in the regional purchases as well.
 
Strong advantage for DL this quarter, paying 10 cents less than AA and 15 cents less than UA.   

 

[WorldTraveler]

DL indeed paid 2.90 on a mainline basis and that is the number I used. Perhaps the higher regional number is because DL doesn't buy all fuel for all of its regional operators. Some regional carriers do use the fuel purchase agreements of the major carrier.

but even 10 cents per gallon is nothing to sneeze at.

DL also posted a higher operating margin than either AA or UA - but I'll let you double check my math on that.

You can also check my reading skills, but it appears that DL is the 2nd largest airline and UA is now number 3 based on revenues both for this quarter and the year to date.

Also appears that DL generated higher cargo revenues than either AA or UA for the 1st six months.

 

[BABABOOY]

With several years of record profits, the rank in file are realizing and getting agitated that our pay 
should also be industry leading.  Should be interesting. 

 

[WorldTraveler]

not sure what airline you want to compare to, but DL has raised salaries faster than any other airline and has the richest profit sharing.

the real goal is WN salaries but you might notice that they are stuck in negotiations and the only "pay raises" they are getting are thru profit sharing.

six weeks worth of pay in the form of profit sharing is pretty rich.