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iwouldhugwonderwoman t1_iyhb0vx wrote

Maintenance seemed very low until my sleepy self realized that maintenance labor is rolled up under salaries.

I’m guessing charter flights fall under other as well as all their cobranded credit cards etc?


positive_bias t1_iyh59qe wrote

Is 11,464M (and the like across this figure) supposed to be 11.5B? Excuse my ignorance but I’m not used to seeing that notation.


soldiernerd t1_iyhg3n6 wrote

Correct - 11,464M is the same as 11.464B.

It’s just written that way to keep all numbers in millions so they’re easy to compare with each other.


positive_bias t1_iyhhsim wrote

Thanks! That’s what I thought. It’s been awhile since I worked with it in that manner so wanted to double check!


d2718 t1_iyh7ynp wrote

There are a lot of places in the world where the uses of the comma and period in numbers are swapped (that is, reversed from how it's used in, for example, the U.S.).


a_n_d_r_e_ t1_iyh3o75 wrote


Fuel and personnel cost more or less the same. Same for maintenance and airplanes leasing.

I wonder what is 'other' in the income.


NettaUsteaDE t1_iyha8p6 wrote

Drug smuggling, duh


a_n_d_r_e_ t1_iyhbi2g wrote

That's both cargo and passengers... (Although some passengers don't 'transport', but mostly 'carry in their bodies' one way or another) /s


jpj77 t1_iyi4um8 wrote

I used to work for Delta. Plane maintenance for other airlines and the government is a huge chunk. There’s entire teams in engineering who don’t do a single thing on Delta planes because they’re constantly doing repairs on external planes.

Also meteorology information or any other analytical information that can be sold to other companies, credit card program, charter flights.

I’m assuming in flight purchases and lounge status are covered under passenger revenue but potentially not.


fromYYZtoSEA t1_iyi9wfv wrote

I would guess other is any other source of income including revenue from co-branded credit cards, their “delta vacations” thing, cuts they get from when they sell you insurance and other ancillary things, perhaps even active interest. Don’t know if change fees are included in passenger revenue or “other”.


vtTownie t1_iyig5kl wrote

Maintenance costs are probz just parts and supplies in this case and the time costs are under the salaries.


pk10534 t1_iyhzd6g wrote

That’s a really slim profit margin, especially given delta is the most profitable airline in the world


halbort t1_iyippzq wrote

Airline business has very narrow profits.


pk10534 t1_iyiq5vv wrote

Apparently so!


devilbunny t1_iyjne6i wrote

Many years ago, I read - though I have no way of checking up on this - that the net profit of the airline industry as a whole since its inception was basically zero. It pays the expenses, the people who work there, and not much else.

Delta, at least in my experience, is worlds better than the alternatives domestically. But that depends on where exactly you fly from and to.


NoNameClever t1_iyhkx5x wrote

Delta exists so that SkyMiles can make billions of dollars. It's where the money is now. $2B to $3B a year net profit from what I could find.


flaconn t1_iyi2ttn wrote

Interesting. Can you expand on this?


NoNameClever t1_iyi3mt4 wrote

Wendover has a good video on how airlines have essentially become banks. Miles are the currency.


ninjasurfer t1_iyjihqc wrote

Almost everyone I know that travels at all uses an airline credit card. Lots of people are paying interest so they can get status and mileage on different airlines.


hamiltonisoverrat3d t1_iyhq7u7 wrote

Where is the cost of the actual planes accounted for?


PsyclOwnd t1_iyhug03 wrote

If I'm wrong in my assumption here and it sounds like mansplaining, i apologize.

So in financial statements, you can't use the entire purchase price of fixed assets (stuff you don't sell, this is stuff you use to generate profit, like planes, buildings, large machines, etc.) at once in your financial statements. There are rules for how you can put these on your financial statements (because those purchases take down how much you need to pay in taxes), and the process of how you expense them on that statement is called depreciation (physical assets) and amortization (non-physical assets like trademarks and copyrights, apps, etc.) This is generally done over time, with number of years and amount per year being determined by what you are depreciating or Amortizing


jmlinden7 t1_iyipnyz wrote

Planes aren't a cost. If you spend $100 million in cash for a $100 million plane, your total assets are still at $100 million. However, planes depreciate over time, which is a cost. When that $100 million plane depreciates so it's only worth $90 million, that $10 million drop in value from depreciation is a cost.

For any rented planes, they'd be accounted for in the 'aircraft rent' category.


polkaguy6000 t1_iyi1skx wrote

It appears cargo did not flow through to the rest of the income statement. Check your totals.


SemperRidiculous t1_iyixfsp wrote

The sky miles points are where the real money is made, it’s a whole other financial statement, separate from flight operations.


Fivethenoname t1_iyixhoo wrote

Does salaries include everyone at the company? All execs and their bonuses as well? Or is the depiction here from the POV of the owners where profit is actually just their cut?


bluemixer t1_iyk60ym wrote

Passenger commissions at $546M?! Where’s my Commission check? I’m still waiting…


Kevs-442 t1_iykbhyl wrote

So $13,975M in income and $267M in taxes. That's 1.91% effective tax rate? Somebody please tell me I'm mathing wrong.


phdoofus t1_iykq5ni wrote

Again you could have stopped after the first column. Can we stop making these please?


TheSQLGuru t1_iytcrap wrote

I am extremely surprised to see aircraft rent be so low!


redfahrenheit16 t1_iz7vfzy wrote

Yo, love this as usual! Can’t wait to see Southwest, American Airlines, and other airline companies! This is great, keep it up!

Also, mind you, this is the highest grossing airline company in the world, and even they can only squeak out a 5% profit margin. Shows you just how cutthroat razor thin this industry this


herbys t1_iyis8nj wrote

I'm pretty sure this is not even close to accurate. $131M a quarter in aircraft rent? That's enough to rent about fifty large airliners, a small fraction of their fleet.

Aircraft rent or ownership is usually about one fourth of an airline operating cost. It's one precent in this chat, which of obviously WAY off.

Edit: I fixed a typo in my original reply, not I see in their actual finance disclosure that this chart missed aircraft acquisitions for $1B, which is not a small sum.