Bankruptcy Math: When Is 'Only' Losing $300 Million Considered A Good Thing? | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 05.18.15

Airborne 05.19.15

Airborne 05.20.15

Airborne 05.21.15

Airborne 05.22.15

Airborne Hi-Def On YouTube

Airborne 05.18.15

Airborne 05.19.15

Airborne 05.20.15

Airborne 05.21.15

Airborne 05.22.15

 

Sat, Mar 04, 2006

Bankruptcy Math: When Is 'Only' Losing $300 Million Considered A Good Thing?

Answer: When You Lost $314 Million One Year Ago

In the slimmest of signs the airline may be at the beginning of its recovery from Chapter 11 bankruptcy, for the first time in recent memory Delta Air Lines reported losing less money in January than during a comparable period one year ago.

"While Delta continued to post significant losses in January, the company is making progress in stabilizing our liquidity and implementing our business plan," Delta's financial chief, Ed Bastian, said in a statement to the Atlanta Journal-Constitution.

In its monthly financial statement released Friday, Delta reported a January loss of $300 million. That's down from the $314 million the carrier lost in January 2005. The airline also ended the month with $2.1 billion in unrestricted cash available, which is up slightly from December 2005.

If you remove $87 million in costs related to bankruptcy -- including the cost of renegotiating aircraft and facilities leases, and attorney fees -- Delta's loss would be a more-substantially-improved $213 million.

Perhaps most encouraging, however, is the success Delta has had recently in "hedging" fuel prices. This tactic -- made famous by Southwest Airlines -- allowed Delta to fix prices for jet fuel at an average of $1.75 per gallon.

That isn't all that great -- the average price for Jet-A in the Southeast region is, you guessed it, $1.75 per gallon -- but should fuel prices increase, Delta will have at least a portion of its fuel supply price-protected -- unlike last year, when high fuel prices hurried Delta's entry into Chapter 11.

Bastian said the airline's renewed ability to enter fuel hedging contracts, which are based on good credit, or cash reserves, "is another indication of the progress we are making in our ongoing efforts to strengthen our financial performance."

By its own estimate, Delta has also been able to reduce its unit costs, excluding fuel, by 5.3 percent compared to January 2005. If you include fuel costs, however, overall costs rose 2.7 percent.

Unit revenue, however was up almost 13 percent compared to a year ago.

FMI: www.delta.com

Advertisement

More News

Airborne 05.21.15: Unlawful Photography? REALLY?, VA Flt Benefits, Pilatus 5M

Also: Aerion Takes Orders, API Partner EAA, 'Fly Along' Case Resolved, BASE Jump Tragedy, Electromagnetic Catapult, Gulfstream G650ER, Piper M500 With the FAA still stuck in the mu>[...]

AD: Airbus Helicopters (Previously Eurocopter France) Helicopters

AD NUMBER: 2015-10-05 PRODUCT: Airbus Helicopters (previously Eurocopter France) Model AS365N3, EC155B, and EC155B1 helicopters with an external life raft in the footsteps with cer>[...]

ANN's Daily Aero-Linx (05.22.15)

MILAVIA MILAVIA, military aviation, is what you are going to find here! The site starts with modern combat aircraft, focusing on main fighters, ground attack aircraft and bombers t>[...]

ANN's Daily Aero-Term (05.22.15): Flap Deflection Angle

The angle between the deflected flap and the chord line.>[...]

Aero-News: Quote Of The Day (05.22.15)

“The restrictions that the town has adopted, by its own calculations, would prohibit a significant share of all airport operations.” Source: Excerpt from a complaint co>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC