Old 05-01-2020, 07:37 AM
  #2  
AUP09
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Joined APC: Mar 2020
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Originally Posted by DALFA View Post
Most recent communications from execs say that we're burning thru $50 million per day. They also say our operating costs are down more than 50%.



So how are we losing $50 million per day if our operating costs alone are less than half what they were before?



In 2Q19 Delta reported operating costs of $10.3 billion. If our costs are done more than half then that means our costs are $5 billion (or less) for the quarter.



Now throw in the revenue from charters, cargo, AmEx, and the passengers that are flying (they said 25% load factor in the most recent townhall).



$50 million loss per day x 90 days in a quarter = $4.5 billion loss



Is it me or does the math just not add up?
Because revenue is down +90%.


Simple numbers for easy math

Annual revenue = $45B ($123M per day)
Annual cost = $40B ($110M per day)

(123*10%) - (110*53%) = $46M loss per day

Additionally, 60% of the reduced cost (110*53%*60%) is wages and benefits.

Last edited by AUP09; 05-01-2020 at 07:47 AM.
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