Delta's CFO Palumbo made a webcast presentation yesterday morning concerning Delta's situation. It can be found and replayed at the site below.
Requires registration
http://www.mapdigital.com/jpmorgan/airline05/ondemand.html
Among the points made:
DAL has no fuel hedges in place
70% of DAL markets have LCC competition
DAL must attain cost parity within single digits of LCC's
30% of revenue comes from traffic from Florida
65% of flights are 2 hours or less
Only 2% of tickets sold exceeded new SimpliFare charge
Increased traffic should offset any potential losses from SimpliFares
DAL now considers itself a LPC (Low Priced Carrier)
DAL has income tax credits of $3 bil to offset future profits
B737-200 & 300, B767-200's to go in next four years
LCC's can be kept out only by low ticket prices from DAL
Oil at $40 per barrel is about $1.20 per gallon for jet fuel
$450 mil go into pensions in 2005, half in 1st Qtr
90% of planned cost cuts in place at end 2005
Jan 31 Re-sched will increase A/C utilization by 10%
System growth 2005 is 6% with 12 fewer A/C