Originally Posted by
slowplay
While this is great news for us in the industry, there are a couple of points to consider.
1. Revenue during the summer of 2009 was down more than 23% compared to the summer of 2008. Revenue would have to increase 30% to return to "normal" levels. 25% is good news and is a long way back toward normal..
PLease keep this kind of thought process around while you are bolstering up the arguments as to why we need pay increases in 2015. Same story, different characters.
Originally Posted by
slowplay
2. Oil prices during the summer of 2009 averaged about $67 bbl. This summer they're projected around $90 bbl. On the good side, the fuel hedges that killed us last year are no longer around.
Delta was forecasting a very small profit prior to the recent traffic recovery. If oil prices stay reasonable and there are no external events (yeah, right), then we have a good chance of making some more coin this year. Nothing to write home about, but still far better than a loss. Earnings season begins next week. I'm real interested to see how Delta's doing on CASM after SOC, and how we stack up on operating margin. I expect that we'll see some differentiation from our full service network peers.
According to RA at the LCP meeting, we are about 50% hedged, but I do not remember the period. When I get my notes, I will let you know what he said for sure.