$238 million loss in 3rd Quarter

[jimntx]

Supposedly would have been $110 million profit if reorg and special charges excluded. $110 million profit on $6.4 billion in revenue? Mercy.

http://aviationblog.dallasnews.com/2012/10/american-airlines-posts-third-quarter-net-loss-of-238-million-but-would-have-posted-a-profit-of-110-million-excluding-reorganization-and-special-charges.html/

 

[FWAAA]

Supposedly would have been $110 million profit if reorg and special charges excluded. $110 million profit on $6.4 billion in revenue? Mercy.

http://aviationblog....l-charges.html/

I've never been adept at discerning the meaning of the word "Mercy" in this context. Are you suggesting that the $110 million profit (excl bankruptcy-related items) is large and impressive or that the profit is somewhat meager?

The labor cost savings have yet to kick in; those will begin to show up on the fourth quarter results.

Here's one analyst's take on the numbers:

"The revenue gains ... show that American is on the right track in a difficult economic environment," said Maxim Group aerospace analyst Ray Neidl.

Still, he said, American had room for improvement, particularly in terms of operating margin. AMR reported quarterly operating margin of 4.1 percent. Neidl said he expects 9 percent at Delta Air Lines (DAL) and 7.4 percent at US Airways (LCC).

http://finance.yahoo.com/news/american-airlines-parent-amr-posts-121514768.html

 

[WorldTraveler]

It says that AA has started to get the RASM pop now that it is pulling capacity - either planned or as a result of operational problems - that other airlines have been able to generate as a result of managing capacity.

The JBAs are helping AA but the labor situation - which are what is necessary to get AA up to industry acceptable profit margins - are far from resolved.

As has been the case for years, the only region where AA is able to add capacity and keep growing RASM is in Latin America, a region where AA has a dominant position but where it is also protected from competitors.

And while AA is trying hard to say that the operational problems haven't had an effect on this quarter's profits, whatever bookaway that is occurring as well as further growth of competitors will be seen down the result.

 

[Frank Szabo]

There you have it, boys and girls - proof of the need of further cost cutting.

Perhaps a halving of the mechanics' hourly rate, taking two more holidays, doubling the insurance cost (again), but keeping the fantastic "management" team in place, and AA should begin showing a profit when hell freezes solid. Bonuses all around for those that made it happen - just don't waste any time cashing the check.

 

[jimntx]

Bonuses all around for those that made it happen - just don't waste any time cashing the check.

Frank, you need not fear the soundness of the checks for the executives' bonusses. See that "Reorg and special charges" item. That includes the exec bonusses. Those come off the top before any other bills are paid. That's what makes them "special." Now, I'm sure you'll be able to sleep tonight since it's been 'splained to you.

 

[1AA]

So why did AA Go into BK again?

Wipe out the contracts and enforce what AA wanted in the first place.
This was all done with the help of the BK courts and the TWU fear facture.
You guys still think the TWU is looking out for our best interest?
Enough is enough. Lets throw these guys out and get AMFA on the property.