Yes... Dad's income in the right seat of a 747-200 in 1978 was about $300,000.

What cost $95,000 = $298,859.21 in 2007 inflation corrected dollars. No wonder we had airplanes, boats and corvettes growing up while I'm agonizing over the purchase of a Ford Ranger as a 767 FO.

Makes me look at my 401K in a whole new light.

 

They WONT get them from me! There are too many contracts opening up for negotiations and WE NEED them all to get raises! Keep raising the bar fellas!!!!

 

That's just ironic there.

I agree with you, but still.

 

i thought thats if they sell the hedges? The loss is a loss in value not in cash when talking about hedges, right? unless they sell for a loss of course

 

A commodity hedge is a contract to provide a good for a specified price. If your contract is for more than the market price and you are contracted to buy at a higher than market price the difference between market and what you are forced to pay is a "loss."

In practical terms, Airlines hedge in heating oil futures. But, we don't burn heating oil. The contracts have to be resolved and they are forced to sell their positions at a loss.

Newspapers report hedging results like the airlines are market speculators hoping to make a buck, but that is not the case. The real point of hedging is not to game the market, but rather to lock in a stable price so you can plan your business going forward.

 

Understood but did we sell at a loss or are we reporting a loss in value of the hedges?

 

Darn, I'll have to actually read the report to answer that question. My guess is that we resolved those positions and actually have a cash loss on the contracts.

I liked the FI comment that we thought we lost 1.4Bn, but we found it hidden under some papers in a desk drawer.

 

Not to be disrespectful, but that's what every pilot at my previous company said and guess what? It passed by an overwhelming majority. I am sure that pay cuts after 9/11 were never going to pass and guess what? Pilots are easily scared into to giving their pay away and management knows it.

I am not saying that pay cuts are even something on the table, especially at Delta. Before I decided to get out of this business Delta was my dream job and I wish you all the best.
My previous comment was more a statement about the today's management vs labor relations. Any time there is financial trouble looming pilots are the ones barring it's weight and I think that there is no change in sight. I really hope that you guys prove me wrong and IF there is any pay cut talk it won't pass like it did every other time since deregulation.

 

I hate when companies say this, well we would have made money. Guess what, you didn't, you lost 1.4 billion dollars, deal with it.
Thats like me saying, well I would have made 100,000 last year if my pay rate was higher....

 

I think DAL is dealing with it. They are just illustrating how out of control fuel prices were last year. And that not the same as saying you would have made 100,000 if you were only paid more. DAL had the money coming in and had to spend in on expensive fuel - did you have 100,000 of income last year?