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Delta Air Lines expects to breakeven in 2009

15-Sep-2009 3:24 PM

Delta Air Lines expects to breakeven in 2009 – financial forecasts:

  • Three months ended 30-Sep-2009:
    • Cost per ASM ex-fuel: +2% year-on-year;
      • Mainline: +2%;
    • Capacity (ASMs): -5%;
      •  
        • Mainline: -6%;
      • Domestic: -4%;
        • Mainline: -5%;
      • International: -8%;
        • Mainline: -7%;
    • Operating margin: 4%;
    • EBITDAR margin: 10%;
    • Unrestricted liquidity: USD5.0 billion;
  • 12 months ended 31-Dec-2009:
    • Cost per ASM ex-fuel: +3%;
      • Mainline: +3%;
    • Capacity (ASMs): -9%;
      •  
        • Mainline: -9%;
      • Domestic: -10%;
        • Mainline: -9%;
      • International: -9%;
        • Mainline: -8%;
    • Operating margin: Breakeven;
    • EBITDAR margin: 8%;
    • Unrestricted liquidity: USD4.6 billion;
  • Fuel hedged:
    • 3Q2009: 52%;
    • 4Q2009: 39%;
    • 2010: 10%. [more]

Delta Air Lines: “System yields for September - December 2009 are expected to be 11-14% lower than the same period last year. Yield pressure is being driven by the prior year period’s fare/surcharge peak related to fuel, the effect of which should lessen throughout the December 2009 quarter. The company expects that its year over year RASM decline for the September 2009 quarter will be a slight improvement over the June 2009 quarter year over year change. The December 2009 quarter RASM change is currently forecasted to be approximately 10 points better than the September 2009 quarter change,” Company statement. Source: Delta Air Lines, 14-Sep-2009.