Bankruptcy Tuesday: Delta Air Lines

Deltaplane

Delta CFO Ed Bastian told investors and analysts today that Delta Air Lines forecasts an operating profit of $816 million this year.

Bastian also said that the airline anticipates exiting bankruptcy in late April and that the airline will launch a stock-exchange listing in early May.

The deadline for creditors to vote on Delta’s reorganization plan is April 9, with a bankruptcy court confirmation hearing set for April 25.

While Bastian said the airline has decided which stock exchange the new shares will trade on, he would not disclose the decision publicly.

Delta expects to carry forward about $7.8 billion in net operating losses.

As for the “C” question, (are you as tired as I am of the word, consolidation?) Bastian no doubt got a few tongues wagging today after he reportedly said that “airline industry consolidation will be one of the top issues for discussion by Delta’s board once the bankruptcy case is over.”

“The question is how long is it going to take,” said Bastian. “I think consolidation is eventually going to occur.”

However, Gerry Grinstein was quoted later as saying that he saw Delta more as the acquier, not the acquiree — and that he would not rule out the possibility of Delta acquiring a low-cost carrier.

Hmmmm.

One final note. Delta also talked Tuesday about how it plans to spend big bucks to upgrade its operations at JFK in New York.

Uh-huh.

What about all those nice new gates up in Boston?

Okay, I’ll behave.

It does not appear that anyone at the meeting brought up the new “grand global marketing scheme” for the airline, nor gave any hints as to what is going to replace the “drapes” on the tails of the Delta aircraft, as CEO Gerry Grinstein described them in a recent employee question and answer session.

But Bastian did, apparently, more or less confirm that Delta subsidiary Comair could be up for sale rather shortly.

“We will, once we’re out of bankruptcy, look at whether owning that business makes a lot of sense,” Bastian said at the

conference.

During a conference call later with reporters, Bastian elaborated that Delta’s effort to maximize returns for shareholders may mean “spinning off certain assets, such as Comair.”

Raise your hand if you are surprised.

Grinstein also said today that the airline expects to have its new 11-member board announced by the end of the week.