dera

Delta generates so much free cash flow right now that they can pay for planes in cash. That hasn't been a thing that long though, only need to look at their Capex from last year that included finance activities for airplane acquisitions/leases.

It's just accounting flex. During COVID, Parker said all their assets (bar a few) were unencumbered assets, "free and clear", because they weren't collateral to any loans. Same with Delta. Borrowing money, then using that money to buy planes is "paying cash", if those planes aren't collateralized in that transaction.
The 19 billion Delta owes right now wasn't spent on hats or guard police trust fund, it was spent on "paying cash" on planes.

On their latest 10-Q, Delta is buying planes using actual free cashflow.

For an average pilot, who gives AF. Someone flexing about buying planes with cash makes no difference whatsoever..

ACEssXfer

So it's not a "profit center" it's savings. If I shut down the APU at the gate is that a profit? What if I fly at 380 instead of 340 becasue an app told me so?

Sure it all contributes to "profit" but stating that MX at DAL is profiting is twisting the truth.

If DAL MX was a completely separate entity similar to a WO regional and did all of DAL's MX and also whatever other services they provide to other airlines it would not make a profit.

ACEssXfer

Well......Yes.

Whoopsmybad

Now you are talking about the 2 different pits of money theory. On one side is overall Delta MX. it is a cost in operating costs, just like fuel, payroll, tugs, etc.. On the other side, you have Delta MX that does contract work for everyone else, which is making Delta money. It’s all shell games played by finance bros, but yes, it generates cash flow/revenue.

Whoopsmybad

This whole conversation was started because someone stated that AA was paying yesteryear prices and lower interest on that price. Except that you don’t actually pay for the planes until they get there, and take that loan out then. So that falls flat. Then it became AA has the newest fleet. While true, it isn’t as much newer as people tried to play it out to be.
And while all airlines take loans while operating, saying that we borrow money just to say we paid cash for planes isn’t true. And also there’s a lot of that debt out there for the new terminals at LGA, SLC, LAX and many other upgrades going on (JFK, terminal D in ATL).
And why do pilots care? In a seniority based system, we care about the health of our airline, because we are attached to it through thick or thin once we are committed.

Margaritaville

50% of the industry profits on 20% of the industry's seats eh?

It sounds to me like Delta management has figured out a way to make more money outside flying than as an airline. As a bank as a refiner as a MRO company as a brand. Meanwhile AA and UA are in a death cage match to be airlines and polls repeatedly show only the phone companies are less popular than the airlines.

Its a brilliant move by DAL management. It also tells me that you guys left a lot of money on the table in your contract.

RippinClapBombs

Actually it is. Ironically Delta’s fleet is older than people play it out to be. Brand new A220’s has decreased Delta’s average fleet age. Eventually they’ll have 131 of those large RJ’s on property which will manipulate Delta’s average fleet age furthermore.

khergan

I swear some of these DAL guys act like Delta is in their DNA or something. It's just a job, and we all do the same job. Right now, Delta is doing better, but that doesn't mean they always will.

Stop taking who you work for so seriously. It's kinda cringey, to be honest. Y'all went through bankrupcty like everyone else. You're not cool, special or anything else, and you drive the same bus that everyone else does.

PilotJ3

Also most 321CEO got here between 2017-2021. We have already about 50 A321NEOs with about 100 more to go. A350 that starting to arrive around 2018, a350 from LATAM, I think we have around 15-20 A330-900Neo in the fleet.

HELLAS

Its all the psyop they do to them durring indoc. Sad