does this plane go to paris
Senior
"Delta Airlines Inc. said Thursday that first quarter revenue dropped as a stronger dollar hurt International demand and domestic booking fell short of it 's expectations."...jimntx said:
Delta Reports Financial and Operating Performance for February 2015
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WorldTraveler
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that is correct... analysts yesterday forecast that this would happen because some of them buy the CRS booking reports and know what is happening with the industry.
and this report highlights that March is still a month that is more dependent on foreign origin travel while the summer is more based on US originating passengers.
You will also notice that DL's traffic (RPMs) grew enough to offset yield weakness - as DL has done repeatedly - which means that weaker yields will still translate into a growth in revenue.
Other carriers are not growing traffic enough to offset yield weakness and so they will see revenue declines.
DL still has the fuel hedge losses that will pull on DL earnings but the chances are pretty high that DL's revenue growth will offset most of the revenue softness.
and once again we see that DL is shrinking its DCI system while shifting capacity to mainline operations.
and this report highlights that March is still a month that is more dependent on foreign origin travel while the summer is more based on US originating passengers.
You will also notice that DL's traffic (RPMs) grew enough to offset yield weakness - as DL has done repeatedly - which means that weaker yields will still translate into a growth in revenue.
Other carriers are not growing traffic enough to offset yield weakness and so they will see revenue declines.
DL still has the fuel hedge losses that will pull on DL earnings but the chances are pretty high that DL's revenue growth will offset most of the revenue softness.
and once again we see that DL is shrinking its DCI system while shifting capacity to mainline operations.
FrugalFlyerv2.0
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does this plane go to paris said:
I can't resist making a couple wise-ass comments- such as:
- could DL be facing a currency challenge
- too bad DL doesn't have a larger domestic network to leverage
- so much for flat RASM for the first quarter
WorldTraveler
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yes, DL is facing a currency issue - so is the entire industry that flies to/from the US - that is what a strong dollar does.
if you think that AA and UA won't be at least as much if not more affected by the strong dollar, then we probably will have to wait until earnings come out
and DL and UA DO NOT have $650 million of impaired revenue in Venezuela or any other country.
if you think that AA and UA won't be at least as much if not more affected by the strong dollar, then we probably will have to wait until earnings come out
and DL and UA DO NOT have $650 million of impaired revenue in Venezuela or any other country.
Never mind, I see why in this story from December.
http://www.delcotimes.com/business/20141212/delta-making-money-at-trainer-refinery-but-finds-challenges-getting-crude
Earlier this month, Delta Air Lines Chief Executive Officer Richard Anderson told investors he expects the Monroe Energy refinery to post a $75 million profit by the end of the fourth quarter, despite a $150 million hedge loss.
That loss was directly related to the plummeting crude oil prices. The refinery pays for the crude at a certain rate ahead of time and when the price declines, the refinery has to wait for the fulfillment of its current order before it can realize the lower savings.
http://www.delcotimes.com/business/20141212/delta-making-money-at-trainer-refinery-but-finds-challenges-getting-crude
Earlier this month, Delta Air Lines Chief Executive Officer Richard Anderson told investors he expects the Monroe Energy refinery to post a $75 million profit by the end of the fourth quarter, despite a $150 million hedge loss.
That loss was directly related to the plummeting crude oil prices. The refinery pays for the crude at a certain rate ahead of time and when the price declines, the refinery has to wait for the fulfillment of its current order before it can realize the lower savings.
WorldTraveler
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ALL airlines buy their fuel at some point in advance unless their crew members carry a credit card and pay for it with each fillup.
The amount in advance depends.
and as much as you refuse to admit it, the refinery and fuel hedges exist for different reasons.
The refinery is profitable right now because of the crack spread even though DL is losing money on hedges which are based on the cost of crude.
The opposite has been true in the past.
The amount in advance depends.
and as much as you refuse to admit it, the refinery and fuel hedges exist for different reasons.
The refinery is profitable right now because of the crack spread even though DL is losing money on hedges which are based on the cost of crude.
The opposite has been true in the past.
FrugalFlyerv2.0
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WorldTraveler said:
WorldTraveler
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You do realize that Amex does participate in DL's fuel purchasing program, don't you?
and since CF Frost is the most widely known Amex cardmember, I wouldn't try to use that card to buy even one quart of oil, let alone try to fill an airplane's tanks.
and since CF Frost is the most widely known Amex cardmember, I wouldn't try to use that card to buy even one quart of oil, let alone try to fill an airplane's tanks.
does this plane go to paris
Senior
From Barron's
"Delta has taken an agressive stance towards guidance of late and the result has been somewhat disappointing, with guidance consistently lowered. We believe expectations heading into 2Q15 have continuted to come down with PRASM expectations suffering the most. We hope management will adopt a more conservative approach towards guidance heading into 2Q15."...
Over promising and underdelivering?
"Delta has taken an agressive stance towards guidance of late and the result has been somewhat disappointing, with guidance consistently lowered. We believe expectations heading into 2Q15 have continuted to come down with PRASM expectations suffering the most. We hope management will adopt a more conservative approach towards guidance heading into 2Q15."...
Over promising and underdelivering?
robbedagain
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sorry paris this just cant be DL we all know it cant be bec of one particular poster 
WorldTraveler
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And yet AA and UA have publicly provided RASM guidance under DL's and they don't even provide monthly RASM in their traffic reports
Maybe just maybe the strong dollar will be just as much if not more of a drag for AA and UA
Maybe just maybe the strong dollar will be just as much if not more of a drag for AA and UA
WorldTraveler said:
So when we got off to a bad start in the first two months I was accused of not knowing there are 3 months in a quarter
If I can remind everyone from the earning call in January:
" Q: Then just a housekeeping, the first quarter is that PRASM that you expect to be flat or total RASM?
A: Paul A. Jacobson - EVP and Chief Financial Officer - That’s PRASM."
So let's recap - DL said PRASM would be flat for the quarter - Jan was down, Feb was down and March was flat. So guess what - DL is down for the quarter - see it's simple math - two negative numbers and one 0 for the quarter equals a negative number
So for all of you who were told you did not know what you were talking about or you didn't understand simple math or you didn't understand that a quarter = 3 months you have learned you were right and someone else was wrong
It does not matter that other airlines were accurate in their 1st quarter forecasts as reported on a previous post above - what you can learn from that is the other two airlines gave better guidance than DL
