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Old 06-13-2013 | 07:57 PM
  #132645  
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Vikz09
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Joined: Feb 2007
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From: M88 B
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I have a question for the faithful contract readers. Listening to Ed's guidance today that raises the second quarter outlook. I am wondering if 2.5 billion pre-tax profit is attainable? Obviously, we know that at 2.5 billion it triggers profit sharing increase to 20% up from 10% (contract give away).

I believe earlier this year the company was aiming for a 2 billion profit and we have exceeded expectations on 1st quater and appear to be ready for a record 2nd quater (paying .35 cents less per gallon than last year, Ed's words from today's deutch bank meeting) I seem to remember from years past that flight ops mentioned that each 1 penny increase in fuel adds 40 million to our annual costs.

That been said do you ever see Delta posting a pre-tax profit north of the 2.5 billion number that triggers the 20% for profit sharing? What are some ways they can finagle or massage that number to keep us from doubling up this year year on profit sharing? I assume management wanted that reduction from 15% to 10% knowing that was a huge savings... However left the top rate At 20% because they never intended to allow a 2.5 billion profit. Can they pay cash for these new air craft to chisel the pre-tax. What accounting protections do we have in our language from prohibiting management from getting close to that trigger of 20% and all of the sudden make 200 million disappear with new tugs, trucks or any other capital expenditure.