Originally Posted by
Trip7
https://seekingalpha.com/news/384433...y_to_clipboard
Looks like operational difficulties are not affecting the Delta financial machine much. 2019 Revenue fully restored although CASM up 22% mainly due to fuel prices. Still expecting margins in the top end of guidance of 13-14% even with a 2% capacity cut. Color me surprised. Pretty good numbers considering the enterprise went thru hell over the past two years with bankruptcy on the table without Govt help.
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CASM-ex is up 20-22%. Pretty hard for that to be mostly fuel costs when it excludes fuel costs.
The reason for that is because fixed costs have to be spread across fewer ASMs now that we’re only flying 83% ASMs compared to 2019. It also tells me that everyone else is getting paid. Time to pay the pilots.
The fact that revenue is ~100% on 83% capacity tells me that PRASM is ~120% compared to 2019. $100 mil socked away for profit sharing on the quarter and expected margins in the 13%-14% range is also positive.
Like I’ve been saying the last couple of weeks, if we had capacity recovered even close to United or AA levels, CASM would be significantly lower and we could easily be seeing margins of 16%+ and capturing incredible earnings with the demand pressure as strong as it is.
The leadership team dropped the ball at just about every step of this recovery and I’m hugely disappointed with where this company is at.