Airline Pilot Central Forums

July 11, 2019
19-15
Delta Announces 2Q Earnings;
Negotiating Environment on Track with Pilot-Driven Goals
This morning, Delta Air Lines released its second quarter 2019 results, and they are outstanding! The efforts of more than 80,000 employees worldwide together make Delta the distinctively customer-focused company that we are. Our collective contributions achieved a record accomplishment that is exceptional: the best June quarter results ever recorded in the history of our company with an adjusted pre-tax income of $2 billion. Put into context, that record is better than 85 out of 90 years of Delta’s history of full year results.
Highlights include:
• Adjusted earnings per share were $2.35, beating the analysts estimates by $0.09 a share reflecting a 32% increase from the second quarter of 2018.
• Total adjusted revenue for the quarter grew nearly $1 billion to a new quarterly record of $12.5 billion.
• Free cash flow for the quarter totaled $1.8 billion. Delta has now generated $2.5 billion in free cash flow
in the first two quarters of 2019. For perspective, Delta has already exceeded the amount of free cash
flow that was generated in all of 2018.
• Delta raised full year cash flow guidance to $4 billion and expects to return $3 billion of that to
shareholders, a $500 million increase over the earlier announced plan for the year.
• They raised the dividend by 15% to $0.40/share.
• Since 2013 Delta has returned $14 billion to shareholders.
These results emphasize how we, the employees of Delta, have transformed our Company into a formidable financial engine that delivers record revenue and consistently churns out substantial free cash flow. Delta is diversified with many revenue streams, and now collects 52% of its revenue from premium products and non- ticket sources. The loyalty, premium products and Maintenance, Repair and Overhaul (MRO) business have become major components of the billions of free cash flow that will be generated this year. CEO Ed Bastian stated on April 10, 2019, that, “Our long-term agreements give us better visibility and even more confidence in the sustainability of this level of cash generation. Importantly, they are decoupled from airfares and provide stability in any economic environment.”
Ed further stated that, “Reliability and our culture of service underpin the strength of our brand and allow us to build lasting customer relationships.” When addressing the many ways Delta people have worked to create our strong position he said, “These advantages combined with a great brand powered by the very best professionals in the business, provide the engine to drive long-term value for our owners.”
We agree with our CEO. It is the people of Delta who have executed the business plan and delivered the reliability, margins and customer care that have made Delta the brand it is today. With increasing international net promoter scores and international margins, Delta employees, and specifically Deltas pilots, have shown that we can deliver a leading international product that adds value to the Delta brand. Our desire to see management honor our PWA’s scope language and make commitments to equitable growth for Delta people in our Joint Venture agreements would further leverage the professionals that deliver the Delta brand every day.

Delta’s earnings put the bankruptcy era concessions into perspective. Whether you were here during bankruptcy or joined Delta after we emerged, some 15 years later, the Delta pilots continue to loyally labor under various concessions that we granted under duress to save our company.
We are now three months into Section 6 negotiations, and our focus is clear, and PILOT DRIVEN:
• Restore retirement value that allows Delta pilots to retire with more financial stability.
• End industry lagging bankruptcy era vacation value and accrual.
• Protect all pilots’ Quality of Life from overreaching company efficiency initiatives and insulting sick
verification.
• Achieve industry-leading deadhead provisions.
• Return to industry-leading health care benefits for our current and retired pilots.
Since the Airline Deregulation Act of 1978, we - the stakeholders of Delta Air Lines - have never seen a revenue and profit environment as full of promise as the one unfolding before us today. Gone is the era where pilots inquired about improvements to our contract, and were met with the question, “What are you willing to give up for that?” Enough has been given. We are not willing to negotiate away our scope protections. We are not willing to negotiate away our quality of life provisions. We are not willing to negotiate away profit sharing for industry standard pay raises. Your feedback is clear: Delta pilots are willing to negotiate an industry leading contract that reflects past sacrifices and current industry dominance.
#DeltaCanAffordIt

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