|
 |
Apr-26-2011Delta vows to recapture full cost of jet fuel(topic overview)
CONTENTS:
Selected Sources
Find out more on this subject
The Atlanta-based airline, which operates a hub at Memphis International Airport ]] , reported revenue of $7.7 billion, up 13 percent from first quarter 2010. Delta lost $318 million in the quarter, 24 percent more than its $256 million loss in the year-ago quarter. Its loss per share reached 38 cents compared to a loss of 31 cents in first quarter 2010. Delta (NYSE: DAL) announced in March that it was slashing its daily flight count from Memphis by 25 percent, focusing the cuts on regional routes. "Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel's impact on our earnings." [1] Reflecting higher volume and yield, the airline's cargo revenue climbed 42 percent in the first quarter to $250 million. Other revenue was up 6 percent, primarily due to higher SkyMiles revenue and revenues from ancillary products and services. Commenting on the results, Richard Anderson, Delta's Chief Executive Officer, stated, "Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel's impact on our earnings." During the quarter, delta hedged 41 percent of its fuel consumption for an average fuel price of $2.89 per gallon. [2]
Despite achieving a 13% increase in operating revenues to $7,747 million, Delta Air Lines has posted a loss of $318 million in the first quarter of 2011. Delta said that fuel price increases in the order of 30% had increased its cost base by $610 million. Excluding Special items, its net loss was $128 million more than that recorded for January-March 2010. [3] ATLANTA (AP) ''' Delta Air Lines Inc. said Tuesday that raising fares should allow it to make up for the higher fuel prices that drove a $318 million loss in the first quarter. [4]
RED INK: Delta Air Lines Inc. lost $318 million during the first quarter as its fuel bill rose sharply. [5] In an ominous sign for summer travelers, Delta Air Lines told investors today it lost $318 million in the first quarter and will help its bottom line by cutting capacity and raising ticket prices. [6]
Higher fuel prices weighed on Delta Air Lines and U.S. Airways in the first quarter, with both carriers posting a wider loss. [7] ATLANTA (Reuters) - Soaring jet fuel costs pounded Delta Air Lines ( DAL.N ) and U.S. Airways Group ( LCC.N ) in the first quarter, leading both to post losses, but rising fares eased the blow, and Delta said it aims to recapture the full cost of fuel on every flight. [8]
The losses today by Delta and U.S. Airways Group Inc. (LCC) meant that Southwest Airlines Co. (LUV) was alone among the five largest U.S. carriers in posting a first-quarter profit. Delta ceded its No. 1 ranking in the world by traffic in October with the merger of United and Continental airlines. Delta plans to retire an additional 10 of its least- efficient aircraft over the next 18 months, for a total of 130 planes eliminated, including its DC9-50 jets that are about 35 years old on average, about 60 of its 50-seat regional jets and some Saab turboprops. The carrier has also trimmed its capital spending budget for the year by $300 million, to $1.2 billion, and it plans to reduce capacity by 4 percentage points in the second half of the year by cutting flights in markets where fares aren'''t covering fuel costs. [9] Delta's fuel bill rose 29 percent, or $483 million, compared to a year earlier. Those higher ticket prices boosted revenue 13 percent, to $7.75 billion. Airlines have raised fares seven times this year as their fuel bills have increased. They're walking a line between covering their higher costs and scaring away price-sensitive customers. [4] Alukos added that if major airlines raise fares too aggressively, low-cost carriers like Southwest Airlines ( LUV.N ) will win a greater share of budget travelers and "undercut the legacy carriers on pricing." Atlanta-based Delta said its first-quarter net loss was $318 million, or 38 cents a share, beating the average analyst forecast of a loss of 50 cents a share, according to Thomson Reuters I/B/E/S. Revenue rose 13 percent to $7.75 billion. [8] WHAT'S EXPECTED: Analysts surveyed by FactSet are expecting Delta to report a loss of 50 cents per share on revenue of $7.61 billion. [10] Over the last 52 weeks the stock has ranged from a low of $8.91 to a high of $14.54. DAL reported earnings this morning, posting a fiscal-Q1 loss of $318 million, or 38 cents per share, on revenue of $7.75 billion. [11]
Analysts surveyed by FactSet expected a loss of 50 cents a share and revenue of $7.61 billion. Other factors in the loss included winter storms that hurt revenue by $90 million, and the March 11 earthquake and tsunami in Japan, which hurt first-quarter revenue by $35 million. [4]
In the same quarter a year earlier, the carrier lost $256 million, or 31 cents a share. "Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel's impact on our earnings," said CEO Richard Anderson in a prepared statement Tuesday. [12] Reduced planned capital expenditures by $300 million to $1.2 billion for 2011. "Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel's impact on our earnings," said Richard Anderson, Delta's chief executive officer. "These actions would not be possible without the dedication and determination of Delta people worldwide, who are working every day to build the best airline in the world for our shareholders, our employees and our customers." [13] '''We believe our aggressive fare actions, combined with a four point capacity reduction for the back half of the year, will allow us to recover the higher costs of fuel in our ticket prices.''' '''Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel'''s impact on our earnings,''' said Richard Anderson, Delta'''s chief executive officer. '''These actions would not be possible without the dedication and determination of Delta people worldwide, who are working every day to build the best airline in the world for our shareholders, our employees and our customers.''' [14]
In doing so, the company expects system capacity for the post-Labor Day period to be down about 3% from the year-earlier period. '''Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel'''s impact on our earnings,''' Delta CEO Richard Anderson said in a statement. Despite its cautious approach, Delta said it expects to book double-digit unit revenue growth for the June quarter. Ed Bastian, Delta'''s president, said the company believes its aggressive fare actions coupled with its capacity reductions will help Delta recover the higher fuel costs in its ticket prices. [15] Delta and other U.S. carriers raised ticket prices six times last quarter to mitigate a 41 percent jump in jet-fuel prices from a year earlier. Delta is retiring some of its oldest and least-efficient planes and cutting capacity after the peak summer travel season to further lower costs. '''Fuel is the biggest challenge facing this industry, and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure,''' Chief Executive Officer Richard Anderson said in the statement. [9] To counteract the effects of the increase in aviation fuel Delta is increasing fares in the U.S. and fuel surcharges internationally and cutting back capacity by more than was previously planned. "Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel's impact on our earnings," said Richard Anderson, Delta's chief executive officer. [3]
"We must fully recapture our costs on every flight every day to maintain and improve our earnings performance," Delta Chief Executive Richard Anderson said on an earnings conference call. "Where we cannot get the necessary revenue increases to offset the increased cost of operating the flights, we will remove capacity, particularly in our post Labor Day schedule," he said. Airlines have steadily boosted fares this year as more than $100-a-barrel oil threatens to wipe out the industry's recovery from the economic downturn. [8] The airline's operating expense rose 16 percent to $7.84 billion due to higher fuel costs, maintenance volumes, employee wage increases, and capacity and revenue related expenses. [2] Its costs also rose due to higher maintenance volumes, employee wage increases and the impact of severe winter weather. It had $29 million in mark-to-market gains for fuel hedges settling in future periods, a $7 million charge associated with the announced retirement of Delta's DC9-50 fleet and a $20 million loss on extinguishment of debt. [1] At March 31, 2011, Delta's adjusted net debt was $14.5 billion, a $500 million reduction from Dec. 31, 2010. "Delta's cost performance this quarter reflects not only the effects from higher maintenance volumes and employee wage increases, but also the impact of severe weather. [13]
Driven by the $610 million impact of 30% higher fuel prices, Delta's net loss was $128 million worse than the March 2010 quarter, excluding special items, the company added. [16] On an adjusted basis, net loss widened to $320 million from $192 million in the same quarter of 2010, reflecting the $610 million negative impact from 30 percent higher fuel prices. [2]
The company attributed the quarterly loss to a 30% rise in fuel prices, which amounted to an impact of $610 million. [15]
Fuel prices were 30%, or $610 million higher, than in the same quarter a year earlier. [12] On a GAAP basis, which includes special items, consolidated CASM increased 10% and non-operating expense decreased $17 million for the March 2011 quarter versus the prior year period. Delta hedged 41% of its fuel consumption for the March 2011 quarter for an average fuel price(3) of $2.89 per gallon. [13] Delta's net loss for the March 2011 quarter was $318 million, or $0.38 per diluted share, which includes $2 million of special items. [13] In the latest quarter, Delta posted a loss of $318 million, or 38 cents a share, compared with a prior-year loss of $256 million, or 31 cents a share. [7] The Atlanta-based airline posted a net loss of $318 million, or 38 cents a share, compared with a loss of $256 million, or 31 cents a share, in the same quarter last year, ahead of average analyst estimates polled by Thomson Reuters of a 50-cent loss. [15] The net loss was $318 million, or 38 cents a share, including a gain related to fuel hedges. That compares with the 50-cent average loss estimate of 13 analysts surveyed by Bloomberg. [9]
The Atlanta-based airline, Port Columbus International Airport's second-busiest carrier, said its net loss totaled $318 million, or 38 cents a share. [17]
First-quarter net loss was $318 million or $0.38 per share compared with $256 million or $0.31 per share last year. [2] U.S. Airways posted a loss, excluding special items, of $110 million, or 68 cents per share. [8]
On average, 14 analysts polled by Thomson Reuters expected loss per share of $0.50 for the quarter. [16]
WHAT TO DO? Raise fares. Delta says it's aiming to recover "the full cost of fuel on every flight, every day." It's also looking to cut costs. WHAT ABOUT HEDGING? That helps, but it's not a cure-all. Delta has hedged almost half of its second-quarter fuel. It still expects to pay $3.26 per gallon, up almost 13 percent from $2.89 during the first quarter. [5] Besides higher fares, Delta is making plans to cut the amount of flying it does in the second half of the year by 4 percentage points. It said reductions would be focused in markets where fare increases have not kept up with rising fuel costs. It increased flying capacity 5 percent during the first quarter, and capacity will rise as much as 4 percent during the second quarter, compared with the same periods last year. [4]
Delta reported higher traffic during the first three months of 2011, helped by stronger international results, as demand for air travel continues to rebound from the recession. The company last month said it had abandoned plans to boost capacity this year, instead expecting to cut it by 2% from 2010 levels as it absorbs rising fuel costs and the Japan crisis weighs on results. [7]
Fuel costs were up 30% for the quarter. Capacity -- the number of seats available to travelers -- will be slashed 4% by fall, Delta President Ed Bastian said in a prepared release.He told investors Delta anticipated double-digit revenue growth for the March-June quarter based on "aggressive fare actions" and reduced capacity. [6] Hundreds of millions of dollars in additional fuel costs pushed Delta (NYSE:DAL) to a loss in the first quarter. [17] Delta Air Lines, Inc.' s ( NASDAQ:DAL ) loss widened in the first quarter, as the company's results were dragged down by higher costs. [14] Delta Air Lines Inc. (DAL), the world'''s second-largest carrier, posted a smaller first-quarter loss than analysts estimated as higher fares helped blunt rising fuel costs. [9]
Hurt by higher fuel prices that more than offset improved sales, Delta Air Lines ( DAL ) revealed a widened first-quarter loss, forcing it to slash capacity by 3% for the post-summer season. [15]
ATLANTA ( TheStreet ) -- Delta ( DAL ) said higher fuel prices resulted in a first-quarter loss, but improved pricing will compensate for the higher costs in the current quarter. [12]
Delta competitor United Continental Holdings Inc. reported a loss of $213 million on Thursday, as fuel spending rose by $560 million. American Airlines reported a loss of $436 million as its fuel bill rose by $366 million for the quarter. [10] Delta and other airlines also had tough weather during the quarter. As one of the two biggest U.S. airlines flying to Japan, its bottom line will be hurt by the dropoff in traffic there. Eleven days after the March 11 earthquake and tsunami, Delta said its full-year profit would be reduced by as much as $400 million because of a drop in demand for flights to Japan. [10] Debt payments in the March 2011 quarter were $460 million. In February, Delta completed the $100 million 2010-1B EETC and the $135 million 2010-2B EETC. As part of these transactions, Delta received $192 million in net proceeds during the quarter. [13] Total operating revenue for the March 2011 quarter was $7.7 billion, an increase of $899 million, or 13%, compared to the same period last year. [13] In the March 2011 quarter, operating expense increased $1.1 billion year over year due to higher fuel expense, maintenance volumes, employee wage increases, and capacity- and revenue-related expenses. [13]
Delta ended the March 2011 quarter with $5.5 billion in unrestricted liquidity, which includes $1.6 billion in undrawn revolving credit lines. [13]
Analysts are looking for EPS of (50c) on revenue of $7.61B. The consensus range is (60c)-(40c) for EPS, and $7.35B-$7.75B for revenue, according to First Call. On its Q4 earnings report, Delta missed adjusted EPS, and narrowly beat revenue estimates. Investors will be looking for the company to beat on both the top and bottom line this quarter. [18] Including hedges, Delta paid $2.89 per gallon in the first quarter. Even with 49 percent of its second-quarter fuel hedged, it still expects to pay $3.26 per gallon. It has hedged 40 percent of its fuel for the third-quarter and 20 percent for the fourth quarter. [4]
Operating expenses were also $3 billion, up 12.8 percent, due primarily to a $272 million jump in fuel costs. [8] Delta has already said it will reduce Japan flying by 15 percent to 20 percent through May. WHY IT MATTERS: Travelers and investors are both wondering the same thing: How high will fares go? Investors want fares to keep rising to cover higher fuel costs. They argue that other businesses charge enough to cover their expenses, and airlines should be no different. [10] In addition to hefty fuel costs, Delta (NYSE:DAL) said expenses rose on higher maintenance volumes, employee wage increases and the impact of severe winter weather. [17] On the cost side, cost per available seat mile excluding fuel rose by 2.8%, with 1.4 points of the increase attributed to the impact of severe winter weather and the disruption in Japan operations. -- Written by Ted Reed in Charlotte. [12] Consolidated unit cost (CASM) excluding fuel and special items(2), increased 2.8% in the March 2011 quarter on a year-over-year basis, with 1.4 points of that increase attributable to the impact of severe winter weather and events in Japan during the quarter. [13]
These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the impact of significant funding obligations with respect to defined benefit pension plans; the impact of posting collateral in connection with our fuel hedge contracts; the impact that our indebtedness may have on our financial and operating activities and our ability to incur additional debt; the restrictions that financial covenants in our financing agreements will have on our financial and business operations; labor issues; the integration of the Delta and Northwest workforces; interruptions or disruptions in service at one of our hub airports; our increasing dependence on technology in our operations; our ability to retain management and key employees; the ability of our credit card processors to take significant holdbacks in certain circumstances; the possible effects of accidents involving our aircraft; the effects of weather, natural disasters and seasonality on our business; the effects of terrorist attacks; and competitive conditions in the airline industry. [13] Airlines can hedge against higher fuel costs by making financial bets that benefit when oil prices rise. That helps, but it's not a cure-all. [4]
The airline's goal is to raise fares enough to cover "the full cost of fuel on every flight, every day," according to a memo to employees from Chief Financial Officer Hank Halter. [4]
"We believe our aggressive fare actions, combined with a four-point capacity reduction for the back half of the year, will allow us to recover the higher costs of fuel in our ticket prices." [12] In an effort to tackle ever-growing increases in oil costs, the jet operator said it is rolling out several initiatives, including raising domestic fares and international fare subcharges. Delta also plans on slashing its capacity for the second-half of 2011, targeting those areas where revenue improvements have not been able to keep up with higher prices. [15]
Delta said passenger revenue was impacted by $90 million and $35 million by severe winter weather and events in Japan, respectively. [7] Delta said first-quarter revenue was also negatively impacted by $90 million due to severe winter weather and by $35 million due to reduced Japan travel. [12]
Cancellations during severe winter weather reduced revenue by $90 million, while the plunge in demand for travel to Japan lowered revenue by $35 million. [9]
Revenue rose 2 percent to $6.85 billion. It went on to earn a full-year 2010 profit of $593 million, and analysts are still predicting a full-year 2011 profit, too. [10] Revenue rose 13 percent to $7.75 billion, the Atlanta-based company said today in a statement. [9]
Passenger revenue was up 13 percent for the quarter to $6.58 billion, driven by a 12 percent increase in yield on higher traffic. [2] Passenger revenue increased 13%, or $769 million, compared to the prior year period driven by a 12% increase in yield on 1% higher traffic. [13] Consolidated passenger revenue on Atlantic routes rose by 15% to $998 million. [3]
During the quarter, passenger revenue per available seat mile rose by 7% on higher pricing and a 5% capacity increase. [12] Passenger Revenue per Available Seat Mile or PRASM rose 7 percent on capacity growth. [2]
The company projected "double-digit growth" in passenger revenue per available seat mile in the current quarter. [8]
Passenger revenue grew 13%, while passenger revenue per available seat mile, an important revenue gauge for airlines, increased 7.3%. Other revenue climbed 6% due to higher revenue from its frequent flier program and other services. [7] Companywide, passenger revenue per available seat mile, a key performance metric for airlines, climbed 8.7%. [7]
Traffic in terms of revenue passenger miles were 42.93 billion, up 1 percent from 42.37 billion in the first quarter of 2010. [2] Netflix ( NFLX ) shares dropped 4.9% to $239.39 as investors reacted to the firm's lower-than-expected outlook. During the quarter, Netflix earned $60.2 million, or $1.11 a share on revenue of $719 million. [19] Wall Street was calling for a profit of $1.03 a share on revenue of $703.6 million. [19] Wall Street Analysts consensus calls for a loss of $-0.5 a share on $7.61 billion revenue. [20] Analysts polled by Thomson Reuters expected a loss of 50 cents on revenue of $7.61 billion. [7]
Revenue for the three months ended March 31 was $7.7 billion, up 13% from $6.8 billion a year ago, beating the Street'''s view of $7.61 billion. [15]
Fares and fees brought in $6.6 billion for the quarter, up 13% from the same quarter of 2010. That is despite Delta having only 805 aircraft in its fleet compared to 966 a year ago and load factors -- how full the planes are flying -- just 76.4% compared to 79.5% last year, the report said. [6] Delta generated $452 million in free cash flow for the quarter and its adjusted net debt at quarter end was $14.5 billion. [13] As part of the new facility, Delta obtained a new $1.225 billion revolving credit facility, which increased the company's total revolving credit facilities by $200 million. [13] The remaining $43 million will be held in escrow until additional aircraft are refinanced later in 2011. In April 2011, Delta completed the $293 million 2011-1A EETC. These proceeds will be held in escrow until the maturity of Delta's 2001-1 EETC later in 2011. In April 2011, Delta refinanced its $2.5 billion corporate credit facility entered into by Delta in 2007. [13]
Delta plans capacity reductions of 3% when implementation is completed following the Labor Day holiday, and has reduced planned 2011 capital expense by $300 million to $1.2 billion. [12]
Countless other devices are now used for gaming, after all, ranging from iPhones to iPads, TVs to tablets. There are massively multiplayer games like with 12 million players on the PC. Zynga's Facebook franchise FarmVille is such a hit that investors have pegged the company at nearly $10 billion. [21] During the March 2011 quarter, operating cash flow was $788 million, driven by strong advance ticket sales, and free cash flow was $452 million. Capital expenditures during the quarter were $340 million, which included $274 million for investments in aircraft, parts and modifications, as the company continued the previously announced investment in its fleet, including winglets, flat-bed seats and enhanced in-seat entertainment. [13] Income tax benefit for the March 2011 quarter includes $71 million of alternative minimum tax (AMT) credits. [13]
ATLANTA, April 26, 2011 /PRNewswire/ -- Delta Air Lines (NYSE: DAL ) today reported financial results for the March 2011 quarter. [13] Delta Air Lines (NYSE:DAL) has decided to resume its flights from Iowa to Atlanta in August. Delta Air Lines (NYSE:DAL), the second largest U.S. carrier, has announced that it has decided to resume its non-stop flights from Iowa Airport to Atlanta in mid-August, which were stopped after the company merged with Northwest Airlines in August 2009. Delta Air Lines (NYSE:DAL) will use its Canadair regional jet with 50 seats for daily service from Cedar Rapids to Atlanta. [22] New York, April 25th (TradersHuddle.com) - Shares of Delta Air Lines, Inc. ( NYSE:DAL ) are trading higher by +1.33% ahead of its quarterly earnings release. Delta, the largest airline in the world is expected to release its quarterly results on April 26 th. [20] Delta Air Lines (NYSE:DAL) shares were at 9 at the end of the last day's trading. [22]
Delta Air Lines, Inc. operates as an airline, providing scheduled air transportation for passengers and cargo throughout the United States and around the world. [14] Delta Air Lines Inc., the nation's second-biggest airline, is scheduled to report first-quarter results before the markets open on Tuesday. [10] Delta Air Lines ( DAL ) is expected to report Q1 earnings on Tuesday, April 26 before the market open with a conference call scheduled for 10:00 am ET. [18]
A passenger waits for his flight near a Delta Air Lines logo at Detriot Airport November 20, 2010. [8] Delta Air Lines, Inc. ( NYSE:DAL ) provides scheduled air transportation for passengers, freight, and mail over a network of routes throughout the United States and internationally. [20]
Delta Air Lines (NYSE:DAL) will also start a seasonal flight to Memphis on June 19 which will be shifted to a daily flight to Atlanta. [22]
Delta is investing more than $2 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. [13] As of March 31, 2011, Delta had $5.5 billion in unrestricted liquidity, including $1.6 billion in undrawn revolving credit facilities. [13] The refinancing also included a $1.375 billion term loan. As a result of this transaction, Delta's 2012 debt maturities have been reduced to $1.9 billion. [13]
"Despite the significant pressures from fuel prices, we continue to make progress on our debt reduction goals and have now achieved $2.5 billion of our $7 billion planned reduction." [13] During the March quarter, Delta detailed its plan to adjust its business in response to rising fuel prices. Reduced its capacity plans for the second half of 2011, which resulted in a four point reduction in planned capacity. [13] Delta presents consolidated and Mainline CASM excluding fuel expense and related taxes because management believes the volatility in fuel prices impacts the comparability of year-over-year financial performance. [13]
The non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Delta is unable to reconcile certain forward-looking projections to GAAP, including projected consolidated non-fuel cost per available seat mile (CASM), as the nature or amount of special items cannot be estimated at this time. Delta excludes special items because management believes the exclusion of these items is helpful to investors to evaluate the company's recurring operational performance. Delta presents free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash. [13] We are redoubling our efforts across the company to improve our cost performance with productivity from capital investments, accelerated aircraft retirements and fixed cost reductions from the business," said Hank Halter, Delta's chief financial officer. [13]
Delta President Ed Bastian said "aggressive fare actions" should allow it to cover the higher cost of fuel. [4] Morningstar equity analyst Basili Alukos said Delta's goal of recovering the full cost of fuel on each flight may not be practical. "(It's) very aggressive, if you ask me," he said. [8]
The company is targeting reductions in markets where revenue improvements have not kept pace with rising fuel costs. [13] Confidence among U.S. consumers increased more than forecast in April, signaling the improving labor market is helping Americans weather rising fuel costs. [23] U.S. Airways, which operates a mostly domestic network, should see the most direct impact from the rising cost of jet fuel as it has no hedges in place. [7]
Convicted rapist Kenneth Pike of Auburn, N.Y., has reportedly turned down a lifesaving heart transplant that would have cost New York taxpayers up to $800,000. Pike's sister, Sharon Cardinal of Auburn, said Pike changed his mind about the transplant after news reports sparked controversy about inmates receiving big-ticket health services arguably at the expense of others, according to The Associated Press. [24] The shares rose 54 cents, or 6 percent, to $9.54 at 9:56 a.m. in New York Stock Exchange composite trading. [9] Including items, the carrier said it lost $318 million, or 38 cents a share. [12] Results: Loss widened to $318 million (38 cents/diluted share) from $256 million. That's a change of 24.2% YoY. [14]
The high estimate calls for loss of $-0.4 a share and the low estimate is calling for a loss of $-0.6 a share, a year ago for the quarter the company reported $-0.23 a share. [20] The company reported a profit of $19 million in the fourth quarter of the last fiscal year, a profit of $363 million in the third quarter of the last fiscal year and $467 million in the second of the last fiscal year. [14]
Hits to the company's bottom line were partially offset by $29 million in mark-to-market gains for fuel hedges settling in future periods. [17]
Southwest Airlines Co. reported a small profit. U.S. Airways Group Inc. said its first-quarter net loss more than doubled to $114 million. [4] O ther, net revenue increased 6%, or $56 million, primarily due to higher SkyMiles revenue and revenues from ancillary products and services. [13] Cargo revenue increased 42%, or $74 million, due to higher volume and yield. [13]
JP Morgan analyst Jamie Baker thinks there's more room for fares to rise. He noted that industry revenue rose more than 30 percent in March vs. February, even with the dropoff in Japan travel. [10] Top line grew from last year and managed to beat analysts' forecast as passenger and cargo revenue rose year-over-year. [2] The biggest increase came in the third quarter of the last fiscal year, when revenue rose 18.2% from the year earlier quarter. [14] Over the last five quarters, revenue has increased 13% on average year over year. [14]
Airlines have not been sitting still. They have raised fares seven times this year alone, so their overall revenue is rising. They can also be choosier about the flying they do, and reduce unprofitable routes, or put growth plans on hold if the demand to support them isn't there. [10] Quoting Management: '''Based on the strength we are seeing in the revenue environment, we currently expect double-digit unit revenue growth for the June quarter,''' said Ed Bastian, Delta'''s president. [14]
The loss for the quarter that ended March 31 worked out to 38 cents per share. [4] Excluding charges in the latest quarter and a prior-year gain on the sale of investments in auction-rate securities, the loss widened to 68 cents a share from 55 cents. [7]
The loss was wider than a year earlier but not as bad as analysts' average forecast of 72 cents a share. [8] The company foresees second-quarter earnings coming in behind Wall Street's estimates, calling for a profit of 93 cents to $1.15 a share, while analysts predicted $1.19 a share. Yahoo! ( YHOO ) said Monday it acquired mobile software maker IntoNow, which aims to make it easier for friends to chat about television shows they're watching. [19]
NEW YORK ( TheStreet ) -- Oracle ( ORCL ) shares dropped 0.5% in pre-market trading Tuesday after its chief financial officer, Jeff Epstein, resigned and was replaced by the company's co-president, Safra Catz. This marks Catz' second run at CFO; she held the position for nearly three years starting in late 2005. [19]
The company said Monday that it was hard at work on a new Nintendo system. It won't be available until 2012 -- but the company has already dropped the price of its machine by $30 to just $170. At the E3 tradeshow in California this June, Nintendo says it will demonstrate the new system, and what it will feature is anybody's guess. Speculation has revolved around high-definition video -- a necessity these days -- as well as features to fend off the rise of the iPhone, such as a controller with a touch screen. It may even include built-in cameras to match some of the gesture and face recognition features of Microsoft's Kinect (features the Wii paved the way for, of course). [21] The Standard & Poor'''s 500 Index rose 0.4 percent to 1,340.8 at 10:17 a.m. in New York. Treasury securities rose, sending the yield on the benchmark 10-year note down to 3.34 percent from 3.37 percent late yesterday. Another report today showed residential real estate prices dropped in February by the most in more than a year, a sign the housing market is struggling to stabilize. [23] More than 7 million Americans age 6 and older participated in yoga or Tai Chi classes last year, reports the Sporting Goods Manufacturers Association (SGMA), a 16 percent increase over 1999, and a 30 percent jump over 1998 figures. [25]
For years game console makers have wanted to become more than just play things. They wanted to become the centerpiece of the home entertainment system, with streaming movies via Netflix and links to Facebook, , Pandora and on-demand music and video. Many have discovered just how difficult it can be maintain these services; Sony's entire gaming and entertainment network has been out of service for 5 days and counting. Creating games for these powerful consoles can cost millions, while creating a game for the iPhone can cost as little as a few thousand dollars. [21]
Delta's particularly aggressive stance signals new determination to keep passing that cost on to customers through fare hikes and other means. [8] Industry analysts were impressed by Delta's tone, but expressed doubt about whether passengers will tolerate higher fares. "You're not seeing them in a state of panic like they were, say, in 2008 because so far demand has been so strong they've been able to pass through most of these additional costs," said Ray Neidl, senior aerospace specialist with Maxim Group. "But at some point, you'll get consumer push-back for ticket price increases," he added. [8]
By exploring a possible candidacy, Barbour hoped to gain some traction by attacking the White House on economic issues. "What I learned as governor of Mississippi is that winning the future doesn't start in Washington, D.C.," he told the Chicago Chamber of Commerce in March, a reference to a White House initiative. "It won't be accomplished through government boondoggles like taxpayer-subsidized high-speed rail or other pet projects. It can't be achieved by having government take control of our automakers, financial sector, health care system and energy industry." His efforts did not seem to generate a lot of excitement. When Republicans were asked their choice for a nominee in a CNN/Opinion Research Corp. poll taken April 9-10, Barbour received less than one half of 1 percent. He did win one straw poll in Charleston County, South Carolina, but didn't do well in some others. While he thought he might find some strength with the conservative base in Iowa and South Carolina, his lobbying career and some of his firm's previous clients were considered a hindrance by some political experts. He would deflect questions regarding that by saying his lobbying background would help him be a better advocate since that's what presidents do for a living. As he tested the waters, he touted his executive experience and his record as governor -- passing a major tort reform bill, overhauling the Medicaid system and luring businesses to the state. "We didn't raise taxes," he told the U.S. Chamber of Commerce. [26] Delta excludes non-cash mark-to-market (MTM) adjustments related to fuel hedges settling in future periods in order to evaluate the company's financial results related to operations in the period shown. [13]
Non-operating expense excluding special items decreased $27 million due to benefits from Delta's debt reduction initiatives. [13] The current-year quarter results included a gain of $2 million from special items while the prior-year period included a charge of $64 million from special items. [2]
The Android numbers fell by two percent and three percent, respectively, from first quarter. [27] Capacity in terms of available seat miles rose 5 percent to 56.22 billion from 53.30 billion in the previous year. [2] Ford reported $2.6 billion in net income, its largest first-quarter profit in 13 years, helped by an expanded portfolio of fuel-efficient vehicles. [7]
The average price of regular fuel climbed to $3.87 a gallon yesterday, the highest level since August 2008, according to AAA, the nation'''s biggest motoring organization. [23] RealMoney Silver: Get Doug Kass's exclusive trading diary + 4 of TheStreet's top premium services including Action Alerts PLUS and RealMoney -- all on one streamlined page. Stocks Under $10: Break into the market with small- and mid-cap stocks. all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. [19]
Delta's stock gained 8 percent in morning trade on the New York Stock Exchange. [8] A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. [13]
SOURCES
1. Delta Q1 loss widens on rising fuel costs | Memphis Business Journal
2. Delta Air Lines Posts Wider Q1 Loss On Fuel Costs - Update
3. Delta Air Lines Q1 Financial Results | Public Sector Travel
4. The Associated Press: Delta Air Lines 1Q loss grows to $318 million
5. Summary Box: Delta Air Lines - ABC News
6. Delta Air Lines to raise ticket prices after $318 million 1Q loss | Detroit Free Press | freep.com
7. Delta, US Airways Extend Losses - WSJ.com
8. Delta vows to recapture full cost of jet fuel | Reuters
9. Delta Air Reports Smaller Loss Than Estimated on Higher Fares - Bloomberg
10. Earnings Preview: Delta Air Lines - BusinessWeek
11. Delta Air Lines (DAL) NewsBite - DAL Q1 Loss Not As Bad As Expected
12. Delta Loses $318 Million on Higher Fuel - TheStreet
13. Delta Air Lines Announces First Quarter Results -- ATLANTA, April 26, 2011 /PRNewswire/ --
14. Delta Air Lines Earnings: Stock is Flying the Clear Blue Skies (NASDAQ:DAL, NYSE:AMR, NYSE:LUV, NYSE:UAL, NASDAQ:JBLU, NYSE:LCC, NYSE:ALK, NYSE:AAI) | Wall St. Cheat Sheet
15. Delta 1Q Results Slammed by Rising Oil Prices - FoxBusiness.com
16. Delta Air Lines Q1 Loss Widens - Quick Facts
17. Delta 1Q loss widens on rising fuel costs | Business First
18. Earnings Preview: Delta Air Lines - Seeking Alpha
19. Oracle's New CFO; Sony Talks Tablets - TheStreet
20. Delta Ahead of Earnings | Earnings- TradersHuddle.com
21. Can Nintendo Wii and Game Consoles Reinvent Themselves? - FoxNews.com
22. Delta Air Lines (NYSE:DAL) Resuming Flights
23. Consumer Confidence in U.S. Rose More Than Forecast in April - Bloomberg
24. Convicted Rapist Kenneth Pike Turns Down Organ Transplant - ABC News
25. JAMA Study: Tai Chi Benefits Health of Heart Failure Patients - ABC News
26. Barbour tested presidential waters but 'wasn't quite there' - CNN.com
27. How much is fragmentation hurting Android? | Software News - Betanews
GENERATE A MULTI-SOURCE SUMMARY ON ANY SUBJECT IN SECONDS! - Use a bunch of the powerful iResearch Reporter tools from Power Text Solutions.
Try out this innovative free service today! |
|  |
|
