VS returns to profit

[Scrooge]

Taken from yesterdays DL earning call.

DL gained $7m as their share of the VS operating profit for Q2.

Good to see VS making money again.

this is definitely good news and shows something is obviously working although now to get their tech side sorted (website etc)

Good news but I believe Q2 is a traditionally strong quarter for the industry.

It will be interesting to see what the full year out turn is.

Delta have 49% ownership so I assume $7m share means Virgin made a $14m profit for Q2.

Does this mean the silver pens are back in UC???

[Darren Wheeler]

Does this mean the silver pens are back in UC???

Yes, but on a silver chain like banks use to have many years ago,

Interesting that DL would even mention this as $10m on their balance sheet is neither here more there.
I suspect they only mentioned it to pacify critics that questioned why they would by into a loss making airline.
It is great news for VS though and credit has to be given to Mr Kreeger for some of his less popular changes.

[preiffer]

Credit to Mr Kreeger? I'd say hold fire on that for juuuuust a little bit longer.

I'd happily hand that credit out *in 5 years time* (and I genuinely hope it's due). The issue is, ANYONE can turn a profit short-term through cost avoidance and service cuts.

The *difficult* part (for an airline) is keeping that profit long-term, as premium and frequent travellers make their minds up for trips in future based on current service delivery...

It's interesting that VS paid out on a quarterly profit, what happens if the next quarter or more relevantly the overall yearly result is a loss, do Delta pay money back to VS

David