04-28-2024Q&A Synopsis (not guaranteed to be perfect ... had to share attention with Thomas the Train and Elmo)
US Airways / American merger – Impact on Delta?
No comment, but consolidation is one of the things that allows the industry to generate its cost of capital going forward.
Effect of Refinery Buy?
Numbers based on forward looking prediction curves. Currently we are on a “pre-pay” system as a relic of bankruptcy. This will actually free up cash since since we will only hold the product while we are refining it. Through swaps, this will cover 80% of our domestic jet fuel requirements.
June unit revenue?
Up high single digits
Do you see less reliance on third party regional airlines?
Not less, but different reliance. We will be changing the mix. It may be a bit less, but still a big part of the contributor to Delta Air Lines.
Revenue?
Joint Venture partners are also pulling out 5% over the Atlantic. The revenue benefit far outweighs the increased cost of network rationalization. We are managing the shoulder periods much more aggressively and will continue to do so.
Tokyo Hub? How will Asia routes change?
$300 Million dollar revenue loss due to Tsunami. We continue to down gauge and rationalize the interport market. We will continue to selectively reduce.
New Aircraft?
Can't speak for other airlines. XXX Margin is based on a numerator and a denominator, we work on both. (non answer, IMO)
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