Any "Latest & Greatest" about Delta?
03-06-2011, 04:35 PM
Gets Weekends Off
Joined APC: Jan 2008
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03-06-2011, 04:48 PM
veut gagner à la loterie
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Position: Light Chop
Posts: 23,286
For those of you who are running out of your "Charlie Sheen" stash, check this out:
Live the Sheen Dream
Live the Sheen Dream
"Rock bottom, that's a fishing term."
BTW, Buzz, if he has the Sober Valley Lodge what do you call your crib? It needs a name.
03-06-2011, 05:16 PM
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Oil, $105.70 now. Climbing.
03-06-2011, 05:18 PM
seeing the large hubs...
Joined APC: Oct 2006
Position: 73N A
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03-06-2011, 05:33 PM
veut gagner à la loterie
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I'm going to start OE in less than two weeks on a new fleet. I was given my Jep revisions. I have to do 8 revisions to bring mine up-to-date, then the cross-over revision, then 2 more revisions to bring those up-to-date totaling 11 Jep revisions total. Our tech pubs division sucks.
*Charlie Sheen reference.
03-06-2011, 06:01 PM
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03-06-2011, 06:37 PM
Gets Weekends Off
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The sky is falling, furloughs are scheduled (j/k) and the world is going to collapse, lol. We better start stockpiling amo, seeds and gold. Or better yet build that bomb shelter.
Nothing we can do, so its best we just stop feeding the fire and ALLOW our very talented management team to find "original" ways to increase Revenues. After all, we are hedged, arent we?
TYG
Nothing we can do, so its best we just stop feeding the fire and ALLOW our very talented management team to find "original" ways to increase Revenues. After all, we are hedged, arent we?
TYG
03-06-2011, 07:00 PM
veut gagner à la loterie
Joined APC: Apr 2008
Position: Light Chop
Posts: 23,286
The sky is falling, furloughs are scheduled (j/k) and the world is going to collapse, lol. We better start stockpiling amo, seeds and gold. Or better yet build that bomb shelter.
Nothing we can do, so its best we just stop feeding the fire and ALLOW our very talented management team to find "original" ways to increase Revenues. After all, we are hedged, arent we?
TYG
Nothing we can do, so its best we just stop feeding the fire and ALLOW our very talented management team to find "original" ways to increase Revenues. After all, we are hedged, arent we?
TYG
We shall see if that is the case.
As for fuel hedging, Keay said Delta has the most advantageous position, with 39% of 2011 hedged at $85 a barrel. Delta recently provided 2011 fuel cost guidance of $2.47 a gallon, less than Southwest(LUV_) guidance of $2.70 to $2.75 a gallon. In general, he said, airlines including Southwest have limited hedging positions, meaning that fuel cost increases are more likely to be passed on to consumers.
United may need to trim flying this year if fuel stays at current prices, CEO Jeff Smisek told investors on Jan. 26. Chicago-based United and Delta, the world’s two largest airlines, used 7.9 billion gallons of fuel in 2010 at a cost of $17.2 billion.
Passenger airlines should adopt the practice of freight carriers United Parcel Service Inc. and FedEx Corp. and abandon hedging, said Hunter Keay, a Stifel Nicolaus & Co. analyst in Baltimore. UPS and FedEx offset price swings with fuel surcharges, which airlines have been more reluctant to use.
“If this industry all stopped hedging, there would be a much more rational pricing environment,” Keay said in an interview. “It would be a landscape that would be far more conducive to fuel surcharges and would save airlines hundreds of millions of dollars in expense.”
“If this industry all stopped hedging, there would be a much more rational pricing environment,” Keay said in an interview. “It would be a landscape that would be far more conducive to fuel surcharges and would save airlines hundreds of millions of dollars in expense.”
Last edited by forgot to bid; 03-06-2011 at 07:25 PM.
03-06-2011, 07:29 PM
Happy to be here
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As of January 31, 2011, our open fuel hedge position is as follows:
Contract Fair
Value at
January 31,
Weighted Percentage of 2011
Average Contract Projected Based Upon
Strike Price Fuel Requirements $92 per Barrel of
(in millions, unless otherwise stated) per Gallon Hedged Crude Oil
Year ending December 31, 2011
Crude Oil
Call options $ 2.05 19% $ 239
Collars — cap/floor 2.10/1.78 10 84
Swaps 2.12 9 58
Total 38% $ 381
Year ending December 31, 2012
Crude Oil
Call Options $ 1.97 1% $ 29
Swaps 2.30 1 3
Total 2% $ 32
For 2010, aircraft fuel and related taxes, including our Contract Carriers under capacity purchase agreements, accounted for $8.9 billion, or 30%, of our
total operating expense, including $89 million of net fuel hedge costs. The following table shows the projected impact to aircraft fuel expense and fuel hedge
margin for 2011 based on the impact of our open fuel hedge contracts at January 31, 2011, assuming the following per barrel prices of crude oil:
Fuel Hedge
Year ending December 31, 2011 Margin
(Increase) Received from
Decrease to Hedge Gain (Posted to)
(in millions) Fuel Expense(1) (Loss)(2) Net impact Counterparties
$60 / barrel $ 2,786 $ (496) $ 2,290 $ (126)
$80 / barrel 1,054 (230) 824 4
$100 / barrel (677) 345 (332) 387
$120 / barrel (2,409) 996 (1,413) 999
(1) Projections based on the decrease (increase) to fuel expense as compared to the estimated crude oil price per barrel of $92 and estimated aircraft fuel
consumption of 3.6 billion gallons for the 11 months ending December 31, 2011.
(2) Projections based on average futures prices per gallon by contract settlement month.
Contract Fair
Value at
January 31,
Weighted Percentage of 2011
Average Contract Projected Based Upon
Strike Price Fuel Requirements $92 per Barrel of
(in millions, unless otherwise stated) per Gallon Hedged Crude Oil
Year ending December 31, 2011
Crude Oil
Call options $ 2.05 19% $ 239
Collars — cap/floor 2.10/1.78 10 84
Swaps 2.12 9 58
Total 38% $ 381
Year ending December 31, 2012
Crude Oil
Call Options $ 1.97 1% $ 29
Swaps 2.30 1 3
Total 2% $ 32
For 2010, aircraft fuel and related taxes, including our Contract Carriers under capacity purchase agreements, accounted for $8.9 billion, or 30%, of our
total operating expense, including $89 million of net fuel hedge costs. The following table shows the projected impact to aircraft fuel expense and fuel hedge
margin for 2011 based on the impact of our open fuel hedge contracts at January 31, 2011, assuming the following per barrel prices of crude oil:
Fuel Hedge
Year ending December 31, 2011 Margin
(Increase) Received from
Decrease to Hedge Gain (Posted to)
(in millions) Fuel Expense(1) (Loss)(2) Net impact Counterparties
$60 / barrel $ 2,786 $ (496) $ 2,290 $ (126)
$80 / barrel 1,054 (230) 824 4
$100 / barrel (677) 345 (332) 387
$120 / barrel (2,409) 996 (1,413) 999
(1) Projections based on the decrease (increase) to fuel expense as compared to the estimated crude oil price per barrel of $92 and estimated aircraft fuel
consumption of 3.6 billion gallons for the 11 months ending December 31, 2011.
(2) Projections based on average futures prices per gallon by contract settlement month.
03-06-2011, 07:36 PM
Gets Weekends Off
Joined APC: Mar 2005
Posts: 1,947
Thanks ACL.
That clears it right up.
That clears it right up.
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