mikea72580

Paul Jacobson-

​​​​​​- Revenue in June Quarter down 10 Billion
- Delta is able to cut costs by 50% in June Quarter. 5 Billion

Rough math- We usually make 2 Billion in profit in June Quarter. So, 3 Billion dollar loss in June Quarter

- We will emerge as a much smaller airline. Will have the chance to grow again over time to reach previous levels.


Opinion: It sounds like there will be no V shaped recovery for airlines. Probably a 3-4 year recovery period. Probably 5 years till we are a lean machine again. I think early retirement offers are pretty much guaranteed now. In rough math, we will lose 12-15 Billion a year with our current cost structure. That is not sustainable. No job will be back filled and very little chance they won’t have to reduce staffing levels. I feel really bad for this management team, they have worked for the past 10 years to build an unbelievable machine, the likes that have never been seen before in air travel. Our business was a juggernaut, with enormous advantages over our competitors. They worked so hard to create this beautiful thing and I think they really became enamored with it. It became their life’s work and it was better than they ever imagined. And like a Jenga game, a piece was pulled from the bottom and the entire structure collapsed. This is a massive gut punch and they have to be stunned as they look at their pile of ash. Will Delta be able to re-establish dominance, who knows? But the power and efficiency of the enterprise they ran may never be matched.

They were leading 7-1 at the bottom of the 9th inning, with the trophies being brought to the field. And now they find themselves back in the first inning 0-0, with aching shoulders and dirty uniforms.

I can’t help but feel someone is going to pick up the bat and decide that we’re winning this double header, whatever it takes. I think we return to profitability in 2022 with a balance sheet similar to 2004, and we start to buildout the most profitable airline in the world again.