Power Breakfast: Delta expects ’solidly profitable’ quarter, immigration, Philips Arena, rail, oil, IMF

Delta Air Lines expects to make a profit in the second quarter, even amid continuing high fuel prices that have prompted flight and workforce cuts, AJC writer Kelly Yamanouchi reports.

The Atlanta-based airline said in a regulatory filing Monday it expects a “solidly profitable” April-June quarter, adding that higher revenue has “largely offset” a more than $1 billion increase in fuel expense year over year, Yamanouchi writes.

Airlines have raised fares to cover high oil costs, and Delta said unit revenue — the amount from each passenger — is up 10 percent for the second quarter compared to the prior-year period, Yamanouchi reports.

Delta expects its operating margin to be 6.5 percent to 7 percent for the quarter, Yamanouchi writes.

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- Henry Unger, The Biz Beat

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5 comments Add your comment


June 28th, 2011
6:55 am

let the delta bashing begin

OK, James... Let's go!

June 28th, 2011
8:05 am

Just heard on Clark Howard yesterday afternoon that Delta scored the lowest scores ever recorded in a (can’t recall the name) customer satisfaction survey….

Could it have to do with their high pricing? Their dismal on-time record? Their old planes? Their recent forced elimination of billions of frequent flyer points for non-usage (only to recant the policy after those points were taken away)?

Their baggage fees (unless you pay for an Amex card)? Their complete lack of respect for families and obscene catering of business clients (who are reimbursed for their expenses and therefore do not care about paying the highest fees in the industry)?

Just spit-balling here….


June 28th, 2011
3:49 pm

That rail plan is one of the smartest things I have seen here yet. Do you realize how many people would take a Marta train from Holcomb Bridge if they were smart?? I would much rather pay 5 bucks a day and be in the city in 1/2 an hour than sit on 400 every single day wasting gas, wasting my time and beating up my car. If you really want to get smart about it…build the Marta train all the way up to Old Milton Parkway. Marta should be patterned around Metro in DC. I used to get on the Shady Grove Red Line stop and be in downtown DC in 45 minutes….if I drove it would take me almost an hour and a 1/2. http://www.wmata.com/rail/maps/map.cfm I would read the paper, check emails, not have to worry about getting into an accident, wasting money on gas, etc, etc… The expansion of Marta is a huge deal if Atlanta is ever going to get to the next level in becoming a world city.

Chief Wiggum

June 28th, 2011
5:49 pm

The “bashing” of Delta in the second comment has a lot to it. Sort of like how AT&T, in the wireless market, treats individuals like crap, and aims for business users…that is what we now see from Delta. Does it have to do with the takeover of Northwest? While Delta bought them, it feels the other way around, Anderson is a former Northwest CEO, he doesn’t seem to be personable like Gerald Grinstein (was that the name?) was. It feels like Delta has learned the “Northwest Way”, instead of the other way around.

Running MARTA to Holcomb Bridge seems like a logical no-brainer. It would reduce the traffic on GA-400. I used to work downtown, and got really tired of having to drive to the North Springs station. At that point, I might as well stay in the car, the worst traffic is almost over (save for the 400/85 merge). Also agree that long-term, running it to Windward is wise.

Light rail across 285 on the top end may make sense, too. I have not seen any numbers to support or shoot it down, but I know that those that plan it will try to over-price it, and scare folks away. I honestly think that innovation is dead among planners. They have ideas about what is “sexy”, and pay no attention to budgets.


June 28th, 2011
7:29 pm

I live in southern Gwinnett County and drive downtown to work 4 days a week. If the Marta referendum had passed in 1990, we would still be years away from light rail in Snellville (2018?). That is unless our money was used to build heavy rail to a public housing project (ie:Maynard Jackson promise). There are zero reasons for me to vote for this 1 cent tax in 2012.