Airline Pilot Central Forums - Any "Latest & Greatest" about Delta?

Airline Pilot Central Forums (https://www.airlinepilotforums.com/)

- Delta (https://www.airlinepilotforums.com/delta/)

- - Any "Latest & Greatest" about Delta? (https://www.airlinepilotforums.com/delta/36912-any-latest-greatest-about-delta.html)

Here's some latest but not so greatest, what is up with the 0500 7ER short call?

Quote:

Originally Posted by satchip (Post 635206)

Here's some latest but not so greatest, what is up with the 0500 7ER short call?

I don't know, but I think it beats the 0300 DC9 short call. ;) :D

I've got one more Latest and definitely Greatest! A friend of mine at The Big D has made lanyards that say "SCOPE". If anyone is interested pm me.

ps mods, I am trying not to get commercial here by not posting the info in the open. If the above still crosses the line, sorry in advance. I've got no stake in this.

Quote:

Originally Posted by newKnow (Post 635113)

If I had a nickel for every time I had to ride the jumpseat this year....I'd have a lot of nickels. :confused:

So THAT'S why airplanes seem to use so much nose up trim these days. :eek:

Ouch...
.....

Quote:

The worsening outlook for near-term revenue and “extremely weak business travel demand” has prompted a key ratings agency to further downgrade Delta Air Lines Inc.’s credit rating.

Fitch Ratings said Thursday it was downgrading Delta’s issuer default rating from B to B-. It’s outlook also was listed as negative, meaning further downgrades are possible.

Its credit rating is still higher than many of its legacy competitors including United Airlines, American Airlines and U.S. Airways.

Atlanta-based Delta (NYSE: DAL) and carriers worldwide have been rocked by the global recession, which has chilled passenger demand. Fuel prices have also risen in recent months, though they remain half the records set last summer.

“Despite large 2009 cost savings driven by the sharp decline in jet fuel prices from last summer's peak, Fitch expects DAL to report another year of substantially negative free cash flow in 2009 as the airline struggles to adjust capacity to a diminished level of demand,” the ratings agency said.

Delta announced earlier this month that passenger revenues had dropped 20 percent in the first four months of 2009 compared to the same period in 2008. Falling revenues would overtake more than $6 billion in total benefits Delta expected this year from lower year-over-year fuel prices, benefits from the merger with Northwest Airlines and capacity reductions.

In response the carrier plans to cut system capacity by 10 percent starting in September and trim international capacity an additional 5 percent from what it announced in March, for a 15 percent total reduction in international capacity.

Fitch noted the world’s largest carrier has more than $5 billion in unrestricted liquidity, which “provides DAL with a bigger margin of safety than most of its legacy carrier competitors, (but) the steady erosion of cash balances since last fall threatens DAL's ability to comfortably meet heavy fixed obligations without improved access to capital.”

Fitch credited Delta for its integration with Northwest, but said “many of the projected revenue synergies offered by the creation of a truly global route network are being offset by the collapse of premium business travel demand and intense fare competition across the entire industry.”

Delta has said it hopes to eventually achieve $2 billion in annual merger synergies.

Delta acknowledged earlier this week that the effects of the H1N1 virus will cost the carrier $250 million, and that softness because of swine flu fears remains.

Fitch considers Delta’s ability to maintain at least $4 billion in liquidity critical as it faces debt maturities in 2010 totaling $2.9 billion, though the carrier will likely seek refinancing.

Quote:

Originally Posted by tsquare (Post 635223)

So THAT'S why airplanes seem to use so much nose up trim these days. :eek:

Yes. Me and my bag of nickels.

some positive info

UPDATE: US Airlines Raise Fares As Travel Picture Stabilizes

CHICAGO (Dow Jones)--Two major U.S. airlines Wednesday night raised fares across parts of their domestic networks, the second hike in as many weeks amid signs that the travel market is stabilizing.

American Airlines, a unit of AMR Corp. (AMR), and UAL Corp.'s (UAUA) United Airlines added $10 and $20 to roundtrip fares, on top of a similar industry-wide increase two weeks ago.

The increases came as the International Air Transport Association said Thursday that passenger demand in May fell 9.2% from the previous year, down from a 3.1% decline in April but better than the 11.1% year-over-year drop in March.

Results reflect not only the global recession but fears this spring over the spread of the A/H1N1 influenza virus. In Mexico, the country hardest hit by the flu, carriers saw air traffic fall by about 40% in May.

While U.S. airlines responded quickly by cutting seat capacity to match falling demand, they've joined world airlines in reporting sharp revenue declines. "We may have hit bottom, but we are a long way from recovery," said Giovanni Bisignani, head of IATA, the airlines' world trade group. "After a 20% fall in international passenger revenue in the first quarter, we estimate the drop accelerated to as much as 30% in May. This crisis is the worst we have ever seen."

Already weak from the global financial downturn, air traffic has taken a sharp hit from fears that the virus was spreading from Mexico to the rest of the world.

Delta Air Lines Inc. (DAL), the world's largest airline, said this week that worries over the virus, also known as swine flu, would cut second-quarter revenue by $250 million, as the airline slashed service to Mexico, Latin America and Asia. Delta said it expects to restore some of that capacity during the remainder of 2009.

Fitch Ratings on Thursday downgraded Delta's debt rating to B- from B, with a negative outlook, due to "continued erosion of the airline's near-term cash flow generation potential, that has resulted from extremely weak business travel demand and large year-over-year declines in passenger revenue." Analyst Bill Warlick wrote in a report that, despite "intense revenue pressure" Delta has better liquidity and maintains cost advantages over rivals UAL, AMR and US Airways Group (LCC), which Fitch rates at CCC. Northwest Airlines, a wholly owned subsidiary of Delta, also was cut to B- from B. Fitch now expects major U.S. airlines with exposure to international business travel to see 2009 passenger revenue fall in a range of 10% to 15%, compared with the previous year.

American and Continental Airlines Inc. (CAL) have said they continue to cut seat capacity to keep pace with weak passenger demand, as both business and leisure travelers curtail their plans.

Those who have bought tickets this year have gotten some good deals. Airlines repeatedly cut fares this spring, even as their costs, especially for fuel, have been rising. But "the pace of domestic airfare sales has dried up recently," said Rick Seaney, who tracks U.S. air fares on the farecompare.com Web site.

I have been cautioning consumers for the past month that they procrastinate on purchasing airline tickets at their own risk - two airfare hikes in the past few weeks is the strongest signal I have seen that the bottom is either here or near," Seaney said."

Quote:

Originally Posted by satchip (Post 635206)

Here's some latest but not so greatest, what is up with the 0500 7ER short call?

Got to cover that domestic flying you have in the bid package.

Bar;
I would have to agree with Fitch. It is going to make buying airplanes fun. Especially the ones that we have no financing on.