Originally Posted by Columbia (Post 1281823)

Delta Announces September Quarter Profit - Yahoo! Finance


Delta Announces September Quarter Profit
Press Release: Delta Air Lines*–*18 minutes ago
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ATLANTA, Oct. 24, 2012 /PRNewswire/ --*Delta Air Lines (DAL) today reported financial results for the September 2012 quarter.* Key points include:
Delta's net income, excluding special items1, for the September 2012 quarter was $768 million, or $0.90 per diluted share.*
Delta's September 2012 quarter GAAP net income was $1.0 billion, or $1.23 per diluted share, including mark-to-market gains on open fuel hedges and other special items.
Delta's unit revenues were up 3 percent for the quarter and the company has produced a unit revenue premium to the industry for eighteen consecutive months.
Results included $174 million in profit sharing expense, for a total of $309 million year to date, in recognition of Delta employees' efforts toward the company's financial targets.* In addition, Delta people have received $67 million in Shared Rewards in 2012 for hitting the company's operational and customer service targets.
Delta ended the September 2012 quarter with $5.1 billion in unrestricted liquidity and adjusted net debt of $11.9 billion.
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"Delta's strong September quarter results combined with industry-leading operations and customer service reflect an improved industry structure and our consistent investment in the business;* we will continue on this path as we progress into 2013," said Richard Anderson, Delta's chief executive officer.* "With a more stable financial foundation, we have moved our focus beyond short-term profit gains to positioning ourselves for long-term margin expansion, sustained profitability and shareholder returns.* I want to thank Delta employees worldwide for their dedication and determination as we continue the hard work of building a better airline."
Revenue Environment
Delta's operating revenue grew $107 million, or 1 percent, on 1.5 percent lower capacity in the September 2012 quarter compared to the September 2011 quarter.* Load factor for the quarter increased 0.3 points year over year to 86.4 percent.*
Passenger revenue increased 1 percent, or $124 million, compared to the prior year period.* Passenger unit revenue (PRASM) increased 3 percent, driven by a 3 percent improvement in yield.*
Cargo revenue decreased 5 percent, or $14 million, with lower cargo yields partially offset by higher volumes.
Other revenue decreased $3 million as lower third-party maintenance revenues were partially offset by higher codeshare revenue.
Comparisons of revenue-related statistics are as follows:




Increase (Decrease)




3Q12 versus 3Q11








Passenger Revenue
3Q12 ($M)

Change
YOY
** Unit
Revenue
Yield
Capacity

Domestic
$ * * 3,690

4%
3%
4%
1%

Atlantic
1,751

(2)%
3%
2%
(5)%

Pacific
1,108

5%
6%
3%
(1)%

Latin America
468

3%
-%
(3)%
3%

Total mainline
7,017

2%
3%
3%
(1)%

Regional
1,675

(2)%
6%
6%
(8)%

Consolidated
$ * * 8,692

1%
3%
3%
(2)%








"Our solid revenue performance reflects the benefits of capacity discipline, strong operational performance and the investments we have made in our products and service," said Ed Bastian, Delta's president. *"We expect our revenue performance to benefit from our continued capacity discipline and further corporate travel gains and we are forecasting our October unit revenues to increase 4 – 5% year over year."
Fuel
Excluding mark-to-market adjustments, Delta's average fuel price2 was $3.14 per gallon for the September quarter, which includes 3 cents per gallon in settled losses from its fuel hedging program.* On a GAAP basis, which includes $440 million of mark-to-market gains on out of period hedges, the company's average fuel price was $2.71 per gallon.*
During the September quarter, jet fuel production began at Delta's wholly-owned Trainer Refinery and the company expects the plant to be fully operational in the December quarter.* For the December quarter, Delta expects Trainer's production to generate a contribution of breakeven to $25 million.
Non-Fuel Cost Performance
Consolidated unit cost (CASM3), excluding fuel expense, profit sharing and special items, was 5.6 percent higher in the September 2012 quarter on a year-over-year basis, driven by the impact of capacity reductions, higher maintenance expense, wage increases and service investments.* GAAP consolidated CASM decreased 2 percent primarily due to mark-to-market gains on open fuel hedges.
"With consistent investment in the business, our non-fuel costs have grown in the past few quarters and we expect that trend to continue into the first half of next year," said Paul Jacobson, Delta's chief financial officer.* "However, we are in the process of implementing a $1 billion program of structural initiatives that we anticipate will generate significant savings in the second half of 2013, while maintaining the high quality product, network and operation we have built."
Cash Flow and Liquidity
As of September 30, 2012, Delta had $5.1 billion in unrestricted liquidity, including $3.2 billion in cash and short-term investments and $1.9 billion in undrawn revolving credit facilities.*
Operating cash flow during the September 2012 quarter was $545 million, driven by the company's profitability, which was offset by the normal seasonal decline in advance ticket sales.* Free cash flow for the September 2012 quarter was $120 million.
Capital expenditures during the quarter were $425 million, including $275 million for fleet, including advance payments for 737-900ERs, induction costs for MD-90s and interior modifications to Delta's international fleet.
During the September quarter, Delta paid $270 million in net debt maturities and capital lease obligations.* At September 30, the company's adjusted net debt was $11.9 billion, a reduction of $5 billion since the end of 2009.
Subsequent to the end of the quarter, Delta refinanced $1.7 billion in debt and undrawn revolving credit facilities secured by the company's Pacific routes and slots.* As a result of this transaction, the company has maintained its revolving credit capacity and lowered the interest rate.* Delta expects the transaction will generate more than $30 million in annual interest expense savings.
December 2012 Quarter Guidance
Delta's projections for the December 2012 quarter are below.

4Q 2012 Forecast


Average fuel price, including taxes and settled hedges
$ 3.15 - $3.20
Operating margin
4 - 6%
Capital expenditures
$450 - 550 million
Total liquidity at end of period
$ 5.2 billion



4Q 2012 Forecast
(compared to 4Q 2011)


Consolidated unit costs – excluding fuel expense and profit sharing
Up 5 - 7%
System capacity
Down 1 – 3%
**** Domestic
Down 1 – 3%
**** International
Down 2 – 4%
*
Special Items
Delta recorded special items totaling a $279 million gain in the September 2012 quarter, including:
a $440 million gain on mark-to-market adjustments on fuel hedges settling in future periods;
a $39 million gain associated with the exchange of slots at New York-LaGuardia and Washington-Reagan National;
a $12 million loss on extinguishment of debt;
a $66 million charge for severance and related costs; and
a $122 million charge for facilities, fleet and other, including charges resulting from the closure of Comair.
Delta recorded special items totaling a $216 million charge in the September 2011 quarter, primarily related to mark to market adjustments for open fuel hedges.
Other Matters
Included with this press release are Delta's unaudited Consolidated Statements of Operations for the three and nine months ended Sept. 30, 2012 and 2011; a statistical summary for those periods; selected balance sheet data as of Sept. 30, 2012 and Dec. 31, 2011; and a reconciliation of certain non-GAAP financial measures.
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Originally Posted by cni187 (Post 1281828)

"At the end of the quarter, Delta’s adjusted net debt was $11.9 billion, a reduction of $5 billion since the end of 2009"

Even my non-economic brain can understand this is a good thing. So now the Gov't needs to follow suit right?

Originally Posted by slowplay (Post 1281831)

I've used the HSA since it came out. While it's not as good as it used to be, imo it still provides a good out of pocket backstop that is lower than the other plans if you really had major expenses. I think Rx is also included in the deductible/coverage (not sure for next year), so that has been a big benefit for my family. Plus, if you don't use the money it rolls over, unlike an FSA.

The calculator showed about $2K in tax savings this year compared to $800 in the FSA. My HSA has grown to a nice little sum (will be withdrawing a bunch this year:() and I'm not figuring the long term tax advantage of that piece. What works for my family may not work for yours, but the HSA came out ahead by several hundred in my situation.

Originally Posted by RockyBoy (Post 1281839)

I'd love to go to the HSA, but I've been in the Gold HRA now since it came out and our account has over $3500 in it because we have been lucky the last few years. If I switch to the HSA, then I lose that account balance. It would be nice if Delta would let us roll that balance into an HSA account if you wanted to swtich over from the HRA plans.

Originally Posted by buzzpat (Post 1281677)

Not EXACTLY true. It must be your area. I've had Prime for 11 years. Never had a problem. In fact, it's better coverage, same if not better providers, and inexpensive (although it is going up with the current administration. No politics, just fact).

We have had military bases near by in the three places we've lived in those years and choose our own providers. Awesome coverage. E Scripts for meds is amazing as well. Refills shipped to your home and they're 100% covered. What's not to like?

Originally Posted by Columbia (Post 1281892)

HSAcenter - Health Savings Accounts - Health Care and Savings for You and Your Family

Able to contribute $6,250 per family with an additional 1k over 55. To get to this number, you have until April 15 of the fllowing year to stroke a check to contribute. Remember that it is still pre-tax so an out of pocket contribution will reduce your taxes. I've made 10% per year the past 5 years on my account balance as well as the bulk of it is in a mutual fund.

Originally Posted by Sink r8 (Post 1281920)

I suppose you can flip that around, \