Delta expects profits to take off next year
Delta Air Lines’ stock got a boost earlier today after the Atlanta-based airline said it expects profits next year to be solid.
The largest carrier serving Hartsfield-Jackson International Airport said it will also end this year with an $800 million profit. According to an Associated Press report, analysts surveyed by FactSet were expecting adjusted net income of $977 million.
The stock closed Wednesday at $8.15, up 16 cents, or 2 percent. The stock reached as high as $8.35.
Chief Executive Officer Richard Anderson said even higher fuel prices won’t put a crimp in strong earnings expected next year, when the carrier is also expected to cut flying by 2 to 3 percent, which will help cut expenses. Higher fares also have prompted the carrier to raise its current quarterly operating margin outlook.
Delta is pouring a lot of money into its hubs to remain competitive. In New York, it has launched an overhaul at JFK Airport and plans to expand operations at LaGuardia Airport after closing a deal with US Airways to transfer takeoff and landing rights at LaGuardia and at Washington D.C.’s Reagan National airports. The company also hopes to benefit from the new international terminal opening at Hartsfield-Jackson in 2012.
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43 comments Add your comment
MandyJo
December 14th, 2011
11:18 am
Great! So how about decreasing/eliminating the checked luggage fees? That’ll also help competitiveness as people look to fly where they don’t have to pay!
Damn Delta
December 14th, 2011
11:18 am
To hell with Delta! I have not flown with them since they ripped me off on baggage fees my last trip. I am a SouthWest fan now.
Avery
December 14th, 2011
11:24 am
Better make as much as you can now, Delta. Southwest is coming, and Hell follows with them.
Proud Republican
December 14th, 2011
11:28 am
@DamnDelta
Good luck with Southwest. You won’t ever catch me on one of their union goon flights. I’ll stick with Delta where the flight attendants and baggage handlers aren’t all lazy union workers like Southwest. Delta is proof that nonunion businesses are superior!
Truth
December 14th, 2011
11:30 am
Good for them. They are in business and are making a profit…that’s the idea.
And as an ATL based company, that is good for people who live/work here whether you acknowledge it or not.
I think all OWS people should sign an agreement that confirms:
1. Their disdain for corporate America
2. Their elimination from EVER working in ANY capacity for a Fortune 500 company.
I read it as I see it
December 14th, 2011
11:38 am
In addition to the baggage fees, maybe the fuel surchage can go away too. BTW, the Delta employees in ATL are the WORST when it comes to customer service.
Steven
December 14th, 2011
11:39 am
Let’s blame President Obama for Delta’s success! Wait, am I in the wrong AJC blog?
rob
December 14th, 2011
11:54 am
wonder if Alec Baldwin will fly them now?
Entitlement society
December 14th, 2011
12:02 pm
Why the negative comments about Delta making a profit? They still have over 10 billion in debt and have lost far more than they have earned over the past decade. If you do not like the bag fees, fly another airline, drive, take the bus etc….. Cheap airfare is not an entitlement. Great news Delta! Atlantas largest employer.
Truth
December 14th, 2011
12:12 pm
Entitlement Society:
See that’s where you’re wrong. Everyone should have a 6 figure job with annual bonuses and equity, a million dollar house, a new car every 2 years, great public school systems to raise their kids for them, cheap airfare, and a constant supply of disposable income in their checking account.
Why should anyone be excluded from the finer things in life by being priced out? That would be crazy……
Jed
December 14th, 2011
12:16 pm
Has everyone forgotten that our Legislature passed a $20M tax break on jet fuel for Delta this past spring? Lawmakers said they wanted to make sure Delta “stays in Georgia.” Give me a break, where else would they locate their main hub? Beijing?
The state could have used that money at a time when revenues are shrinking. And before you people start complaining, I’m a conservative. Yeah, I said it. I’m a conservative and I think Delta didn’t need this tax break to remain competitive.
On a side note, I’m looking forward to Southwest coming to Atlanta. Competition will drive down prices.
Entitlement society
December 14th, 2011
12:39 pm
Jed, Delta could very easily have their main hub in MSP or DTW. Also, southwest fares typically are no cheaper than Delta. Great marketing on their part. Airtran fares are usually less than LUV as their casm is even lower than Luvs. Congrats Delta on the profit. Well deserved.
Sam
December 14th, 2011
12:46 pm
Shouldn’t the legislature cancel the tax giveaway? Or ‘reward’ as they called it. Seems to me that IF such tax abatements are awarded, they should be a incentive for something, not a reward from taxpayers. Maybe it should be dropped all together or have some sort of trigger. i.e., if Detla falls into the red. And that’s a BIG “IF”. I’d like to see comments from the tax giveway’s legislative sponsors.
Dan E
December 14th, 2011
1:22 pm
Amazing!!! No one complains when the oil companies turn a 10 billion profit in one quarter, but let Delta make a profit finally and the crying begins. When Southwest gets here with their no frills cattle car style of flying we’ll see how much you people worship them then.
Disgusted Delta Passenger
December 14th, 2011
1:26 pm
I’m happy for Delta that they’re making money but I am so sick of the cloying Donald Sutherland voiced ads … it’s all drivel. He coos – “Does your airline have you back? It should.” From experience, Delta has instructed all their employees to say how thankful they are you fly with them but will they do something for you in a crisis? No.
Delta also wants you to believe that they are your hometown airline – when for 70 years they have shaking down ATL flyers with fares much higher out of ATL than JFK or LAX where they actually have competition.
I have flown DL for 35 years and will continue to. They are an excellent employer apparently and contribute much to Atlanta. But don’t expect me to get misty eyed about my hometown airline. Those profits were based on bag fees, combined flights, change fees and a dozen other ways to mulct the public.
Keep Climbing (and Mulcting).
Fred
December 14th, 2011
2:03 pm
Does that mean they will be hiring? Whoops, what a stupid question. They are making a ton of money and who care if the work gets done in a timely fashion, it’s just customers and they’ll fly no matter what.
Steve
December 14th, 2011
2:13 pm
My $400 flight to Boston this year is at a record high price tag for me, too.
I can’t stand Delta. Bring it on, Southwest!!!
Kevin
December 14th, 2011
2:24 pm
Haven’t we all learned by now that profit is bad and corporations are evil?
We should Occupy Hartsfield!
Mark
December 14th, 2011
2:42 pm
It seems the one’s that complain about Delta rarely fly, maybe a couple of times a year. They are the one’s that typically don’t understand the “drill” when flying. I’m not a road warrior but average about 1 flight per month and have done so for the last 10 years. I can’t remember one time when a flight attendant has been rude to me or I have recieved poor service. In fact, considerng the crap the flight attendants and gate/ticket agents put up with, I think they do a steller job. Southwest won’t hurt them. Sure, there will be more markets they will have to compete with, but that only helps the consumer.
David L
December 14th, 2011
3:11 pm
Why, why, does the AJC continue to believe that asking for comment on a story like this is of any value. When Atlanta companies do well, we all do well. The rest of the comments here are irrelevant and pointless.
And PS — All my flights have been ontime recently and I’m Medallion. People who don’t fly often complain about “bag fees,” “bad service” and love Southwest. They have no clue. And they’ve never been running late to or from a meeting and needed to move their flight to about any time of the day in about any city in the country to get to or from Atlanta whenever they wanted. That’s what only Delta makes possible.
gforce
December 14th, 2011
3:18 pm
real nice…but they still only give you one bag of peanuts.
So What
December 14th, 2011
3:20 pm
If they are so profitable, then why did they layoff these workers? http://travel.usatoday.com/flights/post/2011/09/delta-lay-offs/546536/1
Marie
December 14th, 2011
3:37 pm
Duh! The profit is coming out of our pockets. It’s ok to have profit, but please stop justifying tripling airfares to some destinations and piling up fees. Find the golden middle where you don’t lose money and don’t overcharge your customers.
cl
December 14th, 2011
3:45 pm
How do you think they get profitable? You reduce your operating expenses (that includes labor force) until you are bringing in more than you are sending out. Not always the popular decision but solid business strategy.
retired Delta
December 14th, 2011
4:14 pm
How about making good on the company’s retirement promise!
Merit Employee
December 14th, 2011
4:21 pm
So that is where the pool of money went for the raise that we were supposed to receive last summer.
Roadrunner
December 14th, 2011
4:24 pm
Delta making a profit!!! UNACCEPTABLE!! The Delta pilots and their ALPA union representatives will take care of this just like they did the last time Delta made a decent profit in 2000!!_
To Hell With Delta
December 14th, 2011
4:27 pm
Delta could careless about customers and service. They flat out sux.
Dekalb comments
December 14th, 2011
4:32 pm
I’m glad Delta is making a profit but they are not my airline of choice. I travel 6-7 times a year on business and 1-2 times a year for pleasure. Living in Atlanta, Delta is sometimes the only practical choice if I want non-stop service.
But that is a far as I will use the term “service” in the same sentence with the word “Delta”. They are consistently late. I am a fit guy of average height but often arrive at my destination with my kneecaps rubbed raw because the seats are so close together. Flight attendants could care less about providing any service even when all they have to do is push a few drinks and snacks. Delta has lost my baggage 4 times over the past 18 months on non-stop flights when I have arrived at the airport a minimum of an hour ahead.
So I am anxious to try Southwest. I usually use AirTran when they offer comparable service. I find AirTran aircraft to be newer and much more comfortable. Service overall seems to be better and more friendly and they have never ever lost my bag.
Mark Eats Idiots Sandwiches
December 14th, 2011
4:32 pm
Payback
December 14th, 2011
4:33 pm
Did they ever payback the bailout……
payola
December 14th, 2011
5:13 pm
higher prices, nickel and dime charges, worse / lower cost service = higher profits!! Congrats–give the execs a huge bonus and raise!!!
Employee
December 14th, 2011
5:40 pm
I wonder if they’ll EVER give their employee’s the raise that has been owed (& promised) to them for several years?!!!
PTC Bernie
December 14th, 2011
9:24 pm
Delta has lost touch with it’s customers. I am putting off some travel until Southwest starts up in February. It is hard as I have many friends who work for Delta, but their upper management has gone too far in screwing e flying public. I just can’t stand by and be treated that way anymore.
EDIMGIAFAD
December 14th, 2011
9:48 pm
Dear Delta – try getting the airplane flight thing right first.
vuduchld
December 14th, 2011
10:08 pm
Sorry, but I have flown Delta way too many times over the past several years and their service sucks for the amount of money paid. In Detroit, they lost the bags I needed on my flight to China, luckily they were found just in time to make that flight. There is a difference between making a profit and ripping someone off. Delta has turned the latter into an art form.
Aqueelah
December 14th, 2011
10:59 pm
Delta used to be the the premier U.S. airline, but now they’re morphing into Eastern Airlines. You have to be a bit of an old timer to know about that.
Avery
December 15th, 2011
12:00 am
It is quite sad how few of Delta’s shrills here understand the point.
Correct — corporations should try to profit maximize. When there is less competition, companies perform less efficiently and also collect higher profit margins for a crappier product…..this hurts consumers.
When there is more competition (e.g., Southwest), companies perform more efficiently and collect lower profits (indeed, when there is pure competition they can only charge marginal cost), but provide better service. This is GOOD for consumers.
And, as Adam Smith said, “Consumption is the sole end and purpose to all production”. More evidence that people with “Republican” or other right-wing slogans in their names shriek about free-market economic solutions without knowing what the hell they are talking about.
And by the way, Adam Smith was pro-union, too.
Billy Bob
December 16th, 2011
9:27 am
Delta has all of there employees on this blog. We see through you.
greg
December 16th, 2011
11:14 am
In hope they fail, whilst the employee’s all took pay cuts the CFO was making 9 million a year, the CEO more. They are liars and republicans, all for me at the work of you. Southwest can beat their butts easy if they stay even somewhat honest. I wonder if your a user of huge amount fuel as they are just build a small refinery of your own and screw Exxon which owns the government.
BILLY MAYS HERE
December 16th, 2011
1:52 pm
The sooner the legacy carriers die, the better (for the fliers).
BILLY MAYS HERE
December 16th, 2011
1:53 pm
Re-regulate air travel
Bobby
December 16th, 2011
2:00 pm
All fine and dandy for Delta. But I’m still flying Southwest from Atlanta. I bought a ticket from ATL-HOU yesterday on Southwest’s site for an upcoming cruise in April. As long as Delta wants to charge baggage fees, I’m very happy to fly Southwest.