- Nov 9, 2003
- 16,512
- 5,865
$305 Million 2Q Profit
- Thread starter BoeingBoy
- Start date
USCREW
Veteran
OUTSTANDING!
Kudos to everyone. None of this would be possible if it weren't for the hard working employees and the dedicated customers! Great job everyone!!!
Man, I almost forgot what it felt like to make a profit! Actually makes ya smile a bit!!!!
Kudos to everyone. None of this would be possible if it weren't for the hard working employees and the dedicated customers! Great job everyone!!!
Man, I almost forgot what it felt like to make a profit! Actually makes ya smile a bit!!!!
EricLv2Fish
Veteran
- Aug 25, 2005
- 1,171
- 5
Here is a detailed explanation from Compass:
Money collected from the services that we provide is known as operating revenue. Items 1-4 are services that we provide
that bring money into the company. All figures are in millions, except the earnings per share number at the end.
Today, US Airways reported a profit for the second quarter 2006 (April through June), marking the second consecutive quarterly
profit. Here we explain the income statement for the second quarter of 2006. Note: We do not compare this quarter's
data to the second quarter of 2005, because the second quarter 2005 contains only America West standalone data.
Keep in mind, the Income Statement does not show how much cash came into or went out of the airline (that information
comes from the Cash Flow Statement). For a single point in time snapshot of the Company’s cash balance, see the Balance
Sheet. The Income Statement is simply an accounting of sales, expenses and net profit for a given period.
A. The sum of items 1-4 are our total operating revenues
From our operating revenue, the following costs must be subtracted. Items 5-15 are known as
operating expenses.
5. At the top of the list is fuel, and in the second quarter fuel and related taxes made
up our largest single mainline expense...............................................................
................... -$669
6. Because US hedges its fuel, the next two lines provide information about our hedges. Realized
hedging gains or losses are those that occurred in the quarter we’re reporting (Q2 in this
case) and unrealized are those for future periods.
Realized hedging gains............................ +$11
Unrealized hedging Gains..................... +$18
= $3,191
Second Quarter 2006 Earnings Recap
US Airways’
1. Since we’re in the business of carrying passengers, it’s no big surprise that our largest revenue source is our customers.
Mainline revenue includes passenger revenue collected from all US
Airways mainline flights...............................................................
...... $2,186
2. Our Express passengers – both from wholly owned and contract
Express carriers – are also an important source of revenue................ +$780
3. Cargo revenues include money received from transporting mail
and freight...............................................................
................................ +$37
4. In addition, operating revenue also comes from other sources like ground
handling for other airlines, interline handling fees, selling frequent flyer miles,
liquor sales and excess baggage fees.............................................................. +$188
7. Salaries and related costs include compensation
for all employees. This line would also include
Hat Trick and Profit Sharing (see 7a)......... -$542
7a. Employee Profit Sharing is included in "salaries and related costs." If
the company is profitable at year-end, 10 percent of the company's pre-tax (and
pre-bonus) income will be distributed among employees.
cont'd on next page
8. Express expenses include the costs of the wholly owned subsidiaries,
and what we pay to purchase capacity from contract carriers. (Note:
subtracting Express expenses from Express revenue will not give you a
true picture of profitability as the revenue number does not include “beyond
contribution†revenue, or the revenue that comes to the mainline
as a result of this feed.)................................................................
....... -$660
9. Well, we have to have something to fly, and we rent the majority of
our fleet. These charges are simply called aircraft rent........... -$180
10. The cost to maintain and repair our beautiful birds rolls up into
aircraft maintenance expenses.......................................... -$153
13. Special charges, net for our second quarter 2006 includes primarily merger-related transition expenses............. -$35
14. Depreciation and amortization is the allowance for the usage of aircraft parts, office equipment, ground equipment,
and any other assets that the company owns and that we expense over the lifetime of the asset................................. -$45
B. The sum of items 5-15 is our total operating Expenses
But this isn’t the end of the story. Next, we must bring our Non-
Operating Expenses and Income into the equation.
16. Interest earned from money that we have in the bank is known as
interest income................................................................
.................... +$41
17. We incur expenses for borrowed money (debt), and this falls into
interest expense...............................................................
..................... -$72
15. Finally, other expenses include things like hotels, per diem, telephone and utility costs, etc................................. -$328
D. Combine items 16-17 for Total Non-Operating Expenses, Net
= -$2,849
= -$31
E. Combine the Operating Profit © and Non-Operating Expenses (D) for our
Income Before Income Taxes and Accounting Change = $311
*Keep in mind that the Wall Street estimate does not include special charges, fuel hedge loss/gains,
or transition expenses. If we take out those items, our net income is $315 or $3.35 per share.
F. That brings us to our Net Income*
= $305 or $3.25 per diluted share
11. Other rent and landing fees includes rent for facilities at airports, airports' landing fees, etc........................ -$145
12. Selling expenses include the distribution costs such as credit card fees and fees we pay to the global distribution systems
(Sabre, Apollo, etc.), as well as advertising expenses ......................................................................
........................................... -$121
C. Total Operating Revenues (A) less Total Operating Expenses (B) equals
our Total Operating PROFIT = $342
18. Next up, Uncle Sam, but this time it's a little confusing. Because of the losses we have accumulated
over the past few years, we were able to protect from taxes up to $1 billion of pre-tax
income in 2006. Nevertheless, we are still subject to Aternative Minimum Tax (AMT). AMT is
designed to prevent corporations and individuals from using tax breaks to avoid paying their fair
share of taxes. Therefore, we still have to pay taxes, although it's a relatively small amount........-$6
The images didn't copy...and makes it harder to read, but hey hats off to everyone for making it happen. Keep in mind the profit sharing only occurs IF we remain profitable at the end of year results, but this is a great start!
Money collected from the services that we provide is known as operating revenue. Items 1-4 are services that we provide
that bring money into the company. All figures are in millions, except the earnings per share number at the end.
Today, US Airways reported a profit for the second quarter 2006 (April through June), marking the second consecutive quarterly
profit. Here we explain the income statement for the second quarter of 2006. Note: We do not compare this quarter's
data to the second quarter of 2005, because the second quarter 2005 contains only America West standalone data.
Keep in mind, the Income Statement does not show how much cash came into or went out of the airline (that information
comes from the Cash Flow Statement). For a single point in time snapshot of the Company’s cash balance, see the Balance
Sheet. The Income Statement is simply an accounting of sales, expenses and net profit for a given period.
A. The sum of items 1-4 are our total operating revenues
From our operating revenue, the following costs must be subtracted. Items 5-15 are known as
operating expenses.
5. At the top of the list is fuel, and in the second quarter fuel and related taxes made
up our largest single mainline expense...............................................................
................... -$669
6. Because US hedges its fuel, the next two lines provide information about our hedges. Realized
hedging gains or losses are those that occurred in the quarter we’re reporting (Q2 in this
case) and unrealized are those for future periods.
Realized hedging gains............................ +$11
Unrealized hedging Gains..................... +$18
= $3,191
Second Quarter 2006 Earnings Recap
US Airways’
1. Since we’re in the business of carrying passengers, it’s no big surprise that our largest revenue source is our customers.
Mainline revenue includes passenger revenue collected from all US
Airways mainline flights...............................................................
...... $2,186
2. Our Express passengers – both from wholly owned and contract
Express carriers – are also an important source of revenue................ +$780
3. Cargo revenues include money received from transporting mail
and freight...............................................................
................................ +$37
4. In addition, operating revenue also comes from other sources like ground
handling for other airlines, interline handling fees, selling frequent flyer miles,
liquor sales and excess baggage fees.............................................................. +$188
7. Salaries and related costs include compensation
for all employees. This line would also include
Hat Trick and Profit Sharing (see 7a)......... -$542
7a. Employee Profit Sharing is included in "salaries and related costs." If
the company is profitable at year-end, 10 percent of the company's pre-tax (and
pre-bonus) income will be distributed among employees.
cont'd on next page
8. Express expenses include the costs of the wholly owned subsidiaries,
and what we pay to purchase capacity from contract carriers. (Note:
subtracting Express expenses from Express revenue will not give you a
true picture of profitability as the revenue number does not include “beyond
contribution†revenue, or the revenue that comes to the mainline
as a result of this feed.)................................................................
....... -$660
9. Well, we have to have something to fly, and we rent the majority of
our fleet. These charges are simply called aircraft rent........... -$180
10. The cost to maintain and repair our beautiful birds rolls up into
aircraft maintenance expenses.......................................... -$153
13. Special charges, net for our second quarter 2006 includes primarily merger-related transition expenses............. -$35
14. Depreciation and amortization is the allowance for the usage of aircraft parts, office equipment, ground equipment,
and any other assets that the company owns and that we expense over the lifetime of the asset................................. -$45
B. The sum of items 5-15 is our total operating Expenses
But this isn’t the end of the story. Next, we must bring our Non-
Operating Expenses and Income into the equation.
16. Interest earned from money that we have in the bank is known as
interest income................................................................
.................... +$41
17. We incur expenses for borrowed money (debt), and this falls into
interest expense...............................................................
..................... -$72
15. Finally, other expenses include things like hotels, per diem, telephone and utility costs, etc................................. -$328
D. Combine items 16-17 for Total Non-Operating Expenses, Net
= -$2,849
= -$31
E. Combine the Operating Profit © and Non-Operating Expenses (D) for our
Income Before Income Taxes and Accounting Change = $311
*Keep in mind that the Wall Street estimate does not include special charges, fuel hedge loss/gains,
or transition expenses. If we take out those items, our net income is $315 or $3.35 per share.
F. That brings us to our Net Income*
= $305 or $3.25 per diluted share
11. Other rent and landing fees includes rent for facilities at airports, airports' landing fees, etc........................ -$145
12. Selling expenses include the distribution costs such as credit card fees and fees we pay to the global distribution systems
(Sabre, Apollo, etc.), as well as advertising expenses ......................................................................
........................................... -$121
C. Total Operating Revenues (A) less Total Operating Expenses (B) equals
our Total Operating PROFIT = $342
18. Next up, Uncle Sam, but this time it's a little confusing. Because of the losses we have accumulated
over the past few years, we were able to protect from taxes up to $1 billion of pre-tax
income in 2006. Nevertheless, we are still subject to Aternative Minimum Tax (AMT). AMT is
designed to prevent corporations and individuals from using tax breaks to avoid paying their fair
share of taxes. Therefore, we still have to pay taxes, although it's a relatively small amount........-$6
The images didn't copy...and makes it harder to read, but hey hats off to everyone for making it happen. Keep in mind the profit sharing only occurs IF we remain profitable at the end of year results, but this is a great start!
EricLv2Fish
Veteran
- Aug 25, 2005
- 1,171
- 5
Letter from Doug about profit sharing and our qtr results:
Letter from Doug Parker:
Profit Sharing Plan
Thursday, July 27, 2006
Dear Fellow Employees:
Today marks a remarkable achievement by the new US Airways team. We reported record profits for our second quarter 2006 of $305 million. Excluding special items (like transition expenses, some interest income and unrealized fuel gains), our net profit was $315 million. What’s really great about today’s announcement is that for the first time in a long time, we have also accrued money for our employee profit sharing plan -- $36 million.
We will be working with our labor unions to determine how profit sharing is allocated to each of those groups and employees and will get that information to you shortly.
Nearly one year ago, we were only starting to see what could be accomplished by putting our two airlines together. Today we are making progress as we create one truly great airline: the new US Airways. Not only are we here long after many said we wouldn’t be, we’re actually doing better than most of our competitors. On a profit margin basis, we were second only to Southwest of carriers who have reported their financial results for the second quarter 2006. Our on-time performance year-to-date ranks second among our peers and we have improved our baggage handling by 50 percent on a year-over-year basis. We’re meeting our integration schedule and are ahead of schedule on many of those projects.
These accomplishments wouldn’t be possible without the efforts of our 35,000 employees so I hope that as you come to work today and in the days ahead, you take a moment to congratulate yourselves and your fellow employees. The summer has been hot and flights are full. We all know that we have much more to do but we are off to a great start. It takes all of us working together to make our airline run well and today’s results mark the fruits of those efforts. I look forward to adding to the $36 million accrued today when we report our third quarter 2006 results, and I thank you for all you are doing to make the new US Airways a great airline.
Letter from Doug Parker:
Profit Sharing Plan
Thursday, July 27, 2006
Dear Fellow Employees:
Today marks a remarkable achievement by the new US Airways team. We reported record profits for our second quarter 2006 of $305 million. Excluding special items (like transition expenses, some interest income and unrealized fuel gains), our net profit was $315 million. What’s really great about today’s announcement is that for the first time in a long time, we have also accrued money for our employee profit sharing plan -- $36 million.
We will be working with our labor unions to determine how profit sharing is allocated to each of those groups and employees and will get that information to you shortly.
Nearly one year ago, we were only starting to see what could be accomplished by putting our two airlines together. Today we are making progress as we create one truly great airline: the new US Airways. Not only are we here long after many said we wouldn’t be, we’re actually doing better than most of our competitors. On a profit margin basis, we were second only to Southwest of carriers who have reported their financial results for the second quarter 2006. Our on-time performance year-to-date ranks second among our peers and we have improved our baggage handling by 50 percent on a year-over-year basis. We’re meeting our integration schedule and are ahead of schedule on many of those projects.
These accomplishments wouldn’t be possible without the efforts of our 35,000 employees so I hope that as you come to work today and in the days ahead, you take a moment to congratulate yourselves and your fellow employees. The summer has been hot and flights are full. We all know that we have much more to do but we are off to a great start. It takes all of us working together to make our airline run well and today’s results mark the fruits of those efforts. I look forward to adding to the $36 million accrued today when we report our third quarter 2006 results, and I thank you for all you are doing to make the new US Airways a great airline.
USCREW
Veteran
I think I'll dig out all my dusty USAir logo stuff and wear it all today. T-shirt, shorts, baseball cap, fanny-pack, socks, airplane watch...and I'll carry my USAir waterbottle, cooler, and beach towel to the pool. I'll be stylin'.
PITbull
Veteran
Congratulations to the USAirways employees...stay the course.
Ensure that at the bargaining table, the profit sharing does not take the place of improving the transitional agreements for labor.
Don't get confused.
Ensure that at the bargaining table, the profit sharing does not take the place of improving the transitional agreements for labor.
Don't get confused.
robbedagain
Veteran
kudos to everyone for a job well done!
Just a quickie question: those of us who are in the outsourced Fleet Service stations, do we also get in on that profit sharing thing or no? that would begreat if we could
Just a quickie question: those of us who are in the outsourced Fleet Service stations, do we also get in on that profit sharing thing or no? that would begreat if we could
I dont get it. We beat predictions by 11 cents and this happens.
US AIRWAYS GROUP INC (NYSE:LCC) Delayed quote data
Last Trade: 50.14
Trade Time: 11:14AM ET
Change: -0.99 (1.94%)
Down a dollar. Whats up?
US AIRWAYS GROUP INC (NYSE:LCC) Delayed quote data
Last Trade: 50.14
Trade Time: 11:14AM ET
Change: -0.99 (1.94%)
Down a dollar. Whats up?
Of the $315 million net profit, $246 million of it came from the EAST side. Yeah, thanks for saving us, AWA. 
Shows where the REAL money is made...
Shows where the REAL money is made...
EricLv2Fish
Veteran
- Aug 25, 2005
- 1,171
- 5
Of the $315 million net profit, $246 million of it came from the EAST side. Yeah, thanks for saving us, AWA.
Don't forget who is the captain of the ship and where he came from B)
Indeed the East routes are a treasure IF properly managed.
EyeInTheSky
Veteran
Of the $315 million net profit, $246 million of it came from the EAST side. Yeah, thanks for saving us, AWA.
C'mon ab320driver,
Show me the money, okay so the east makes more money... Show me the management...and that's out west. I don't think one would be succesfull without the other so take it easy...jeeze.
Eye
OP
- Nov 9, 2003
- 16,512
- 5,865
- Thread Starter
- #13
Well, $120 million came directly from Express - that's not counting the incremental revenue (and profits) that came from the feed they provice to mainline. That's 40% of the profits from something like 12-15% of the capacity.
Maybe we should thank Mesa, Republic, Chataugua, etc for saving us all.......
Jim
Maybe we should thank Mesa, Republic, Chataugua, etc for saving us all.......
Jim
Of the $315 million net profit, $246 million of it came from the EAST side. Yeah, thanks for saving us, AWA.
So why couldn't EAST make a profit before? <_<
You're right, thank you Capt. Lakefield for your expertise in navigating the Wall Street financial maze. None of this would have been possible without your skills. First Officer Parker, the controls are now yours...
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