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Airline math

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  • Airline math

    I was reading this morning where merger partners Delta and Northwest Airlines reported a combined $10,500,000,000 in losses in the first quarter of 2008. That is correct, $10.5 BILLION in just one quarter. In their analysis, higher fuel costs were blamed as the reason for the losses.

    However, closer examination of the financials revealed that Delta paid $585 MILLION and Northwest $445 MILLION more in fuel costs in the first quarter of 2008 as compared to the first quarter of 2007. How do you blame a loss of $10.5 BILLION on a component of your cost structure that only increased by $1.03 BILLION, or 10% of the loss?

    Do I just not understand airline accounting???

    A totally confused Decimal Dude

    Guido Salvage - "Where rust is beautiful" and real Studebaker horsepower lives

    See pictures here:

    Hiding and preserving Studebakers in Richmond, Goochland & Louisa, Va.

  • #2
    It's called Raise the Price 30% math and gouge the public some more. We who deal with it everyday have another simple name INEFFICIENCY [:0]
    sigpicSee you in the future as I write about our past


    • #3
      Obviously they are using the new "fuzzy" which none
      of the answers are correct, but there might be one that is "maybe"
      close! It's either that or they are using something other than
      the Base 10 numbering system......

      glen Brose - Perkinsville, AZ


      • #4
        I've been a mechanic for Delta for 21 years now and even I can't figure this financial stuff out. It seems like there's always a "one time" cost for one thing or another.[8)]

        One thing to watch out for though, there will be more major carriers merging before it's over. The skyrocketing (no pun intended), cost of jet fuel is hurting EVERYBODY.