Originally Posted by
sailingfun
Just to clarify but I think you know this. delta predicts up to 7 billion in revenue by 2023. That is a increase of 3.6 billion from current revenue generated by the AMEX program. Those numbers however are not profit. There are large costs associated with the program. Using a typical 15% return the 3.6 billion should up Delta’s profit 540 million dollars a year. That’s a massive increase but does not sound as good as your 7 billion number. Stating they will be making 7 billion is flat out incorrect. Revenue is not profit and the revenue increase from today is 3.6 billion not 7.
The one thing I do know is you are very intelligent. You did not post this by mistake. It was posted intentionally and you knew it was wildly incorrect to claim it was 10 times the improvements we are asking for in the contract.
Sailing
“Joe DeNardi, an analyst with Stifel, long has argued frequent flyer programs are the most profitable piece of every airline, with profit margins approaching 50 percent. Yet few airlines break out detail on their programs, with many viewing them as secret.”
Skift
What say you now Sailing?
I am more optimistic than most. To me all the stars are aligned for the Delta pilots and management to work hand in hand to complete this contract.
The gains to be made far exceed the cost of our well deserved gains.
American, United and Southwest are in complete disarray.
Let’s hope management chooses wisely.