Delta posts profit but workforce cuts...
06-27-2011, 06:18 AM
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Delta posts profit but workforce cuts...
Delta air sees quarterly profit, workforce cuts - MarketWatch
By Christopher Hinton
NEW YORK (MarketWatch) -- Delta Air Lines DAL +1.96% said Monday it expects to have a "solidly profitable" second quarter as higher revenues have largely offset a jump in fuel prices. Passenger revenue per available seat mile is forecast to climb 10% in the current period, the Atlanta-based airline said. Fuel during the period was up by 91 cents from a year ago to $3.23 a gallon, though that's expected to decline in the third quarter to $3.03 a gallon. To tame its non-fuel costs and bring them down to 2010 levels, Delta said it plans to reduce its post-Labor Day seat capacity by 4% by retiring older aircraft it will no longer have to service and reduce its workforce. Delta expects to end the second quarter with $5.6 billion in unrestricted liquidity
By Christopher Hinton
NEW YORK (MarketWatch) -- Delta Air Lines DAL +1.96% said Monday it expects to have a "solidly profitable" second quarter as higher revenues have largely offset a jump in fuel prices. Passenger revenue per available seat mile is forecast to climb 10% in the current period, the Atlanta-based airline said. Fuel during the period was up by 91 cents from a year ago to $3.23 a gallon, though that's expected to decline in the third quarter to $3.03 a gallon. To tame its non-fuel costs and bring them down to 2010 levels, Delta said it plans to reduce its post-Labor Day seat capacity by 4% by retiring older aircraft it will no longer have to service and reduce its workforce. Delta expects to end the second quarter with $5.6 billion in unrestricted liquidity
06-27-2011, 06:57 AM
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The financial data being reported specifically mentioned the 55,000 Delta employees who qualify for early retirement.
Delta has been smart about reducing expensive workers from the top rather than furloughing from the bottom.
Delta has been smart about reducing expensive workers from the top rather than furloughing from the bottom.
06-27-2011, 06:59 AM
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That's correct TD. It's partially SF340's, CRJ100/200's and DC9's. Those are the older aircraft that are being retired.
WRT the workforce, an early out program was offered to all workers(although it was not originally intended for pilots) and to the companies suprise more pilots then expected have submitted their papers to retire early.
WRT the workforce, an early out program was offered to all workers(although it was not originally intended for pilots) and to the companies suprise more pilots then expected have submitted their papers to retire early.
06-27-2011, 07:47 AM
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Originally Posted by Fishfreighter
I suspect there are a lot of guys who are just sick of the whole game. TSA, etc.
Time to go.
Time to go.
Originally Posted by KC10 FATboy
In the latest message from Steve Dickson, he said that the response to the retirement plan was higher than anticipated. It appears the older pilots are starting to hang it up.
06-27-2011, 07:57 AM
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Why is Delta getting out of the turboprop market? Especially with fuel higher than it was a couple years ago, you'd think they'd be looking at more, newer, turboprops for regional feed in lieu of older 50 seat RJs.
06-27-2011, 08:34 AM
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Originally Posted by BoilerUP
Why is Delta getting out of the turboprop market? Especially with fuel higher than it was a couple years ago, you'd think they'd be looking at more, newer, turboprops for regional feed in lieu of older 50 seat RJs.
For what it's worth....I had a Mesaba jumpseater say they are actually renewing some of the leases on the SF340s and they are rethinking parking the SF340s.
06-27-2011, 09:09 AM
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Originally Posted by flyguy1
For what it's worth....I had a Mesaba jumpseater say they are actually renewing some of the leases on the SF340s and they are rethinking parking the SF340s.
Anything is possible but apparently the outstations received letters that all the Saabs would cease operations into their stations by December 31st. Obviously this is a rumor, on the other hand Travelnet still shows Saabs going to certain cities into May of next year.
Last edited by Lone Palm; 06-27-2011 at 09:21 AM.
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