Yeah, but this isn't $2B off the profits, right? It's that accounting funny money that's just "written off" and I just nod my head like I understand what just happened.

I does get counted against profits but is don't think it affects our profit sharing. When you mark something to market you are just updating the current value of the positions and they get counted against your balance sheet but you haven't actually realized the profit/loss yet.

After Enron and World com where they were hiding all their losses in shell companies, the Government started requiring mark-to-market accounting so all profits and losses were on the table and accounted for so a true value of a company could be assessed by potential investors. When they announce earnings there will be a profit or loss per share and then there will be a p&l per share excluding special items and one time charges. The second number usually removes MTM losses.

Our profit sharing is based on EBITDA profits (Earnings Before Interest payments, Taxes, and Depreciated Assets.) MTM fuel hedge losses are a depreciated asset.

I'm no accountant but that is my understanding.

American JCBA TA hourly rates exceed ours by 1/1/16

Group 2 19% 320/maddog/737

Group 3 23% 757/767

Group 4 17% widebody

Let the whining and spinning and "total compensation" nonsense begin.

The line pilots will NEVER accept less than AA rates. So the insiders will COMPLETELY disregard the contract survey and cut our profit sharing.

After all, what do the line pilots know?

The entire focus will shift to total compensation instead of the billions Delta is making and the billions we made in concessions.

No talk of restoring our bankruptcy concessions that are no longer needed.

Unfortunately unless oil prices shoot up in the next weeks, the mark to mark provision gets realized as I understand pretty much all of Delta's hedge book expires in 2016. Hopefully Delta's operational profits are boosted by low fuel prices more than the hedge losses that will need to be written off in 2016 if prices stay where they are.

you got is spent already don't ya!? ;) hoping there might be just a little left over if its higher than you thought? ;)

We single engine taxi and do all sorts of other stuff all year long to save a few million.

Management drops $2 billion gambling in the futures market.

Guess who will get the giant bonus check?

Yeah, but two billion dollars of the concessions just got lost by the hedge fund manager at the oil speculation roulette table so can't we just call it even?

If I was a betting man, I would bet that is being discussed right now.

Alfa,
What say you?

Serious question: has Delta EVER come out ahead at hedging?