Delta, AA, Continental All Post Q3 Losses | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 09.19.14 ** HD iPad-Friendly -- Airborne 09.19.14 **
** Airborne 09.17.14 ** HD iPad-Friendly -- Airborne 09.17.14 **
** Airborne 09.15.14 ** HD iPad-Friendly -- Airborne 09.15.14 **

Fri, Oct 17, 2008

Delta, AA, Continental All Post Q3 Losses

Execs Pin Hopes On Low Oil Prices Hanging Around

Airline financial statements are like the old joke from the Tonight Show with Johnny Carson: "How bad are they?" Quarterly reports are starting to come out this week, and actually, so far... they're mixed.

Delta Airlines reported Thursday it lost $26 million in the third quarter, and attributed the loss mostly to fuel prices. In last year's third quarter, Delta earned $220 million.

AMR, the parent of American Airlines, lost $360 million... compared to earnings of $175 million for the same period in 2007. Continental Airlines -- which, in addition to the tough economy, also had Hurricane Ike to contend with -- posted a $236 million loss, compared to a Q3 2007 profit of $241 million.

But the look back at the third quarter is only half the story. These reports are also opportunities for corporate executives to look forward, and tell investors where they thing their companies, and the industry, are headed.

The New York Times reports executives at Delta expressed hope the recent steep drop in oil prices, combined with capacity reductions, may help airlines weather an economic downturn. In a conference call, CEO Richard Anderson told participants falling fuel prices work like a hedge, and could result in "a couple hundred million dollars" in fourth-quarter earnings.

"Fuel dropping like a rock is a big offset to the economy," Anderson noted.

American Airlines execs were less bullish... warning that fuel prices could rise again at any time, and that recent financial turmoil could hurt business bookings. CEO Gerard Arpey said current oil prices, "...are not really a bargain by historic standards, and volatility continues to be a concern. We can’t necessarily depend on oil, one way or another."

Continental CEO Larry Kellner took a middle-of-the-road approach, which bordered on the philosophical. "Fuel prices have declined significantly, and if they stay around their current levels we'll benefit greatly," he said, according to the Associated Press. "On the other hand, we know that demand for air travel will be adversely affected by a recession, and it remains to be seen how deep, wide and long the recession will be."

Those personal outlooks closely parallel projected domestic ticket sales for the fourth quarter. Delta predicts capacity cuts will result in higher load factors than a year ago. American and Continental both expect their planes to be less full on domestic routes.

FMI: www.continental.com, www.aa.com, www.delta.com

Advertisement

More News

Aero-News: Quote Of The Day (09.21.14)

"The RCAF took the initiative to remove these functional, perfectly good parts and use them effectively. It was a sound decision, helping to ensure the long-term viability of the a>[...]

Enhanced F-35 Logistics Systems Delivered To Flight Test Locations

Integrates Preventative Maintenance, Flight Scheduling, And Mission Planning The 'next evolution' of the F-35 Lightning II's information technology backbone called the Autonomic Lo>[...]

Airbus Forecasts Strong Demand For Air Travel In The Middle East

Delivers First A380 To Qatar Airways Saying Airplane Is 'Ideal' For The Region Airbus has delivered Qatar Airways' first A380, and has used the occasion to tout the airplane as pla>[...]

NBAA Names 2014 Humanitarian Award Recipients

International Jet Aviation, Make-A-Wish Foundation, To Be Honored In Orlando The NBAA is pleased to announce that International Jet Aviation Services of Centennial, CO and the Make>[...]

NASA Seeks America's 'Best And Brightest' For Research Fellowships

Applications Period Open For Space Technology Grants NASA is seeking applications from U.S. graduate students for the agency's Space Technology Research Fellowships. The research g>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC