If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|
Thread Tools | Display Modes |
#1
|
|||
|
|||
Allegedly Delta Has $5 Billion Loss in 2004
www.ajc.com
business page cookie registration hassle, but it's a fine newspaper nevertheless (imho) Air Tran etal have been eating Delta's lunch, supper and breakfast Some idiotic-cheapos (yours truly, once) had been known to "drive from the Atlanta area to Birmingham" to $ave (a hundred or whatever) by going to the west/Seattle on Southwest (which doesn't go to Atlanta nor to Greenville, S.C.) |
#2
|
|||
|
|||
as Senator Wonderful Political B.S. Orator Dirksen said: "a billion here, a
billion there, and soon that amounts to real money" copyrighted by atlanta journal constitution 2005 www.ajc.com http://www.ajc.com/business/content/...5/20delta.html Delta losses continue Quarter's net red ink : $2.2B, thanks to special charges By RUSSELL GRANTHAM The Atlanta Journal-Constitution Published on: 01/20/05 A lot has changed since Delta Air Lines skirted bankruptcy last fall. But one thing hasn't: red ink. In its first financial update since winning pilot pay cuts and announcing other turnaround moves, Delta Thursday reported a fourth-quarter loss of about $2.2 billion, for a net loss for the year totaling $5.2 billion. EMAIL THIS PRINT THIS MOST POPULAR DELTA TODAY NYE: DAL Last: 5.37 Change: -0.58 Volume: 7,830,300 Day High: 5.75 Day Low: 5.29 Last Trade Time: 1/20/05 3:46:00 PM ComStock Inc. 20 min. delayed • More data, chart info Both the fourth quarter and annual loss numbers were inflated by huge non-cash charges related to restructuring moves. Such charges reflect the carrier's financial struggles, but do not mean the company is losing that much from daily operations. The charges were $1.4 billion in the fourth quarter and $2.9 billion for the full year. Excluding such charges, the fourth quarter loss was $780 million, slightly worse than expected. The full year loss was $2.3 billion when not including the special charges. Delta also said it ended the year with $2.1 billion in cash, $1.8 billion of it unrestricted. That marks a rebound from last fall when cash dipped below $1.5 billion, the level at which analysts say a bankruptcy filing becomes more likely. Delta added to its coffers by borrowing $811 million from GE Commercial Finance and American Express's travel arm. Higher fuel costs hammered Delta in the fourth quarter, as it paid an average of $1.42 per gallon of jet fuel, up 68 percent from a year earlier. That led to a nearly 7 percent rise in how much it costs Delta to fly one seat one mile, despite the company's cost-cutting efforts. Meanwhile, the amount of revenue the airline gets from each seat flown one mile dropped about 5 percent.. "These numbers show clearly the difficulties our airline will continue to face in 2005," CEO Gerald Grinstein said. "At the same time Delta made important progress toward our transformation goals.". Grinstein, in a memo to workers this week, said Delta passed "through the eye of the needle" in 2004 and can now focus on new turnaround strategies. "Though we still are not out of the woods," he said, management is making changes "to transform Delta into the right airline for the new era." As an example, he said, Delta "rocked the industry" with its recent fare overhaul, showing an ability to "take the offensive and begin shaping industry direction, rather than simply responding." Grinstein said Delta's ability to boost its service image may hinge on smooth execution of a massive schedule overhaul at the end of this month. Dubbed "Operation Clockwork," it includes boosting daily flights at the Atlanta hub to 1,051, from 970 now. Industrywide losses Analysts don't expect Delta's turnaround plan — most of which hasn't kicked in yet — to appreciably shrink its losses for months. The current consensus is that Delta will lose an additional $500 million or so through March, and more than $700 million this year. Delta isn't alone in enduring stubborn losses. (this long & sad article continues at www.ajc.com) |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Carnival Quarter & Full Year Earnings! | Ray Goldenberg | Cruises | 0 | December 16th, 2004 03:29 PM |
DELTA Ponders Chapter 11 | Jim | Air travel | 2 | May 18th, 2004 06:17 PM |
Delta Airlines Changing Uniforms | None | Air travel | 0 | February 10th, 2004 12:43 AM |
Delta Queen Steamboat Inducted! | Ray Goldenberg | Cruises | 0 | January 22nd, 2004 03:25 PM |
Queen names luxury ocean liner | Earl Evleth | Europe | 12 | January 11th, 2004 07:22 AM |