AAL 2Q14 Earnings -$1.5B before specials...

[eolesen]

From DMN's aviation blog... Still haven't seen the official release

When the new American Airlines Group launched itself with more than $10 billion in cash, investors wanted to know what it was going to do with so much money on hand.

On Thursday, the company provided an answer.

It announced that it would begin paying a quarterly dividend of 10 cents a share as well as:

Prepay more than $2.8 billion in debt and aircraft leases.

Devote $1 billion to repurchase its shares

Contribute an extra $600 million to its pension plans.

The company said it ended the second quarter June 30 with about $10.3 million in cash and short-term investments, even though it had repaid about $502 million in debt during the three months.

The announcement was part of its report of second quarter earnings of $1.5 billion excluding items and special charges. Including those items, it earned $864 million.

American Airlines chairman and CEO Doug Parker said the dividend was the first paid by American since 1980, before it transformed itself into AMR Corp. in 1982, filed for bankruptcy in 2011 or merged Dec. 9, 2013, with US Airways.

We are very pleased to report the highest quarterly profit in the history of American Airlines. Our merger is off to a great start and our 100,000 team members are doing a wonderful job working together to take care of our customers, Parker said.

We are also pleased to announce a capital deployment program that reduces our debt, provides additional pension contributions and returns capital to shareholders, he said.

The fact that we are able to implement this program while still funding our significant product improvements, fleet renewal program and integration costs is further evidence of the success of our merger. We have much hard work ahead, but we are extremely encouraged by the great work being done by our team members, Parker said.

 

[dfw gen]

and we have no profit sharing! thank you TWU!

 

[eolesen]

Wow... Domestic PRASM was up 9.9%, Pacific PRASM was up 9%. That's impressive. Latam was down slightly and domestic & Atlantic were flat.

Haven't seen a margin yet, but clearly a huge reversal.

Profit sharing? You had it on the table, and gave it up. For those who dumped your shares the day they vested, that was a dumb choice in 2003, and it was a dumb choice now.

 

[TWU informer]

I FELT IT!
DID YOU FEEL IT?

 

[WorldTraveler]

Latin RASM was down 2.5%.

Operating margin was 12.8% according to press release.

mainline fuel price was $3.02/gallon.

ex fuel/specials CASM was up 2.2%.

$251M of special items, most of which were merger and BK related charges

http://finance.yahoo.com/news/american-airlines-group-reports-highest-113000930.html

 

[WeAAsles]

Wow... Domestic PRASM was up 9.9%, Pacific PRASM was up 9%. That's impressive. Latam was down slightly and domestic & Atlantic were flat.

Haven't seen a margin yet, but clearly a huge reversal.

Profit sharing? You had it on the table, and gave it up. For those who dumped your shares the day they vested, that was a dumb choice in 2003, and it was a dumb choice now.

The PS was exchanged for the 4.8% raise. When the math was done with the way the payout formula was written, the company would have had to have a 4 Billion profit for the year to equal the raise for TWU members. And that wasn't including gains to the 401k, OT or extra hours worked from the raise. 

I personally took the raise and added it to my 401k contributions. I also took my retiree pre-funding return and purchased US Airways (LCC) stock for $18.50 per share. In the conversion to AAL I was given an extra $1 per share and so far am very satisfied with the return on my investment.

I plan to HOLD all my shares until at least April of next year and then I'll evaluate what I'm going to do with them?

 

[CMH_GSE]

The PS was exchanged for the 4.8% raise. When the math was done with the way the payout formula was written, the company would have had to have a 4 Billion profit for the year to equal the raise for TWU members. And that wasn't including gains to the 401k, OT or extra hours worked from the raise. 
I personally took the raise and added it to my 401k contributions. I also took my retiree pre-funding return and purchased US Airways (LCC) stock for $18.50 per share. In the conversion to AAL I was given an extra $1 per share and so far am very satisfied with the return on my investment.
I plan to HOLD all my shares until at least April of next year and then I'll evaluate what I'm going to do with them?

Agree with this, the raise was better than the one time payment as profits are rather fleeting in the airline industry. The raise is permanent , well that is until the next BK, carry on.

 

[WeAAsles]

Currently the pre Market traders are pouring their money into UAL on their bit of good news today. AAL is down?

 

[WeAAsles]

http://www.bloomberg.com/video/american-transformed-as-it-sets-dividend-ceo-tmnrWNV8TVyZuT8YU2VKJA.html?cmpid=yhoo

 

[1AA]

and we have no profit sharing! thank you TWU!

And Southwest did this to their employees and the profit sharing checks are just down the road.
 

DALLAS, July 24, 2014 /PRNewswire/ -- Southwest Airlines (LUV) announced today it will recognize Southwest and AirTran Employees with a one-time cash award of $200 each as a thank you for all their hard work related to the Company achieving a 17.1 percent pre-tax return on invested capital, excluding special items (ROIC), for the 12 months ended June 30, 2014.  

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, "Operating an airline is the ultimate team sport, and this was a total team effort.  Together we have weathered the worst decade in the history of commercial aviation.  Together, we stepped up to the challenge. Together we avoided bankruptcy. Together, we have transformed Southwest.
 
https://m.yahoo.com/w/legobpengine/finance/news/southwest-airlines-recognizes-employees-cash-132000064.html?.intl=us&.lang=en-us

 

[1AA]

Wow... Domestic PRASM was up 9.9%, Pacific PRASM was up 9%. That's impressive. Latam was down slightly and domestic & Atlantic were flat.

Haven't seen a margin yet, but clearly a huge reversal.

Profit sharing? You had it on the table, and gave it up. For those who dumped your shares the day they vested, that was a dumb choice in 2003, and it was a dumb choice now.

Sorry E we as members had NO input what so ever to get rid of profit sharing. Jim Little took it upon himself to dump it. We as members wanted to keep the profit sharing for this very reason. Too bad Jim Little made his deal to help the company and then his exit came shortly thereafter. Another screwing by the TWU.

 

[Deleted member 14439]

You doggone twu clowns. They should never have given away profit sharing. We deserve BOTH the raise and profit sharing! Bunch of commie lovin clowns. Go AMFA!!!

 

[WNMECH]

"It is hard to believe that less than eight months ago, American was in bankruptcy yet today we are reporting record profits, repaying debt, making additional pension contributions and declaring dividends to shareholders," CEO Doug Parker said.


What's hard to believe is that a bankruptcy judge allowed them to claim they were broke and destroy employee contracts, when they had billions of dollars in the bank.

 

[WeAAsles]

Sorry E we as members had NO input what so ever to get rid of profit sharing. Jim Little took it upon himself to dump it. We as members wanted to keep the profit sharing for this very reason. Too bad Jim Little made his deal to help the company and then his exit came shortly thereafter. Another screwing by the TWU.

I also heard that the TWU was responsible for the Burning Of Rome in 64AD. Amazing how many people focus on that clandestine organization know as the Freemasons without having even the slightest clue about the TWU and all the atrocities they've perpetrated on man in the last 3000 years.

 

[FWAAA]

You doggone twu clowns. They should never have given away profit sharing. We deserve BOTH the raise and profit sharing! Bunch of commie lovin clowns. Go AMFA!!!

Part of the blame goes to the pilots, who gave away 2/3 (10%) of the profit sharing in 2012 in exchange for reduced concessions, which was then forced on everyone else thanks to the "me-too" clauses.    The TWU clowns gave away the last third (5%).    A-holes.
 
When your employer offers you 15% first dollar profit sharing on the eve of multi-billion dollar profits, NEVER give it back.   Negotiate raises but don't trade away future participation in profits.     Now, the DL employees make more money than the equivalent AA employees and they'll likely get a profit-sharing check equal to about six weeks wages next February.   The WN employees make loads more money than the AA employees and they'll get profit sharing.   Meanwhile, the industrial union apologists boast that their raise is far better than profit sharing.   

No wonder management has been able to ride roughshod over the AA employees for so long.   It's just too easy.