Originally Posted by
captnate702
if that happens delta immediately enters bankruptcy. There’s no chance they could be profitable without the $7b Amex revenue they get each year (CC revenue is over 95% profit margins at airlines).
yiu think delta could survive with the same costs yet 7b less in revenue???
Easily. You're presumption is that Delta's massive domestic network, premium seats and International routes are all huge money losers somehow and that Delta only makes a bunch of money because AMEX just gifts them $7B a year for doing nothing.
Delta's costs would be much less if they didn't have to fly around $7B in revenue worth of people, bags, etc. At their current profit margin they'd save about $6.1B in costs and so they would only be down $900M in net profit. Still a multi-billion dollar profitable company.