US Airways says costs to rise more than expected

[700UW]

NEW YORK, Oct 5 (Reuters) - US Airways Group Inc (LCC.N: Quote, Profile, Research) said on Friday it expects costs per available seat mile, or unit costs, to rise faster than earlier expected as its reins in capacity.

Amid fears that a slowing U.S. economy will dampen spending on travel, the higher costs could hurt earnings if revenues fail to keep pace.

The carrier said units costs, excluding fuel and special items, would rise 5 percent to 6 percent in the third quarter, higher than a July forecast of a rise of 3 percent to 5 percent.

Fourth-quarter units costs, excluding fuel and special items, are expected to rise 5 percent to 7 percent, compared to the July forecast of a rise of 1 percent to 3 percent.

US Airways said the higher third-quarter unit costs stem in part from a capacity reduction that did not lower costs at the same rate of as past cuts.

Fourth-quarter unit costs were expected to be higher because of an additional 4 percent reduction in capacity.

Higher profit-sharing expenses were expected to burden both the third and fourth quarters, US Airways said in a filing with the U.S. Securities and Exchange Commission.

 

[Non Rev]

NEW YORK, Oct 5 (Reuters) - US Airways Group Inc (LCC.N: Quote, Profile, Research) said on Friday it expects costs per available seat mile, or unit costs, to rise faster than earlier expected as its reins in capacity...............................


Higher profit-sharing expenses were expected to burden both the third and fourth quarters, US Airways said in a filing with the U.S. Securities and Exchange Commission.

Burden!?!?!!? WTF!............arrogant SOB's. Employees have taken such a hit profit sharing was offered to offset the loss of pay and benefits and now its a "burden".

 

[OTslave]

NEW YORK, Oct 5 (Reuters) - US Airways Group Inc (LCC.N: Quote, Profile, Research) said on Friday it expects costs per available seat mile, or unit costs, to rise faster than earlier expected as its reins in capacity.

Amid fears that a slowing U.S. economy will dampen spending on travel, the higher costs could hurt earnings if revenues fail to keep pace.

The carrier said units costs, excluding fuel and special items, would rise 5 percent to 6 percent in the third quarter, higher than a July forecast of a rise of 3 percent to 5 percent.

Fourth-quarter units costs, excluding fuel and special items, are expected to rise 5 percent to 7 percent, compared to the July forecast of a rise of 1 percent to 3 percent.

US Airways said the higher third-quarter unit costs stem in part from a capacity reduction that did not lower costs at the same rate of as past cuts.

Fourth-quarter unit costs were expected to be higher because of an additional 4 percent reduction in capacity.

Higher profit-sharing expenses were expected to burden both the third and fourth quarters, US Airways said in a filing with the U.S. Securities and Exchange Commission.

A good solution is to get rid of some of the dead weight at the top. That should be a considerable savings

 

[PHL]

If employee profit sharing is a burden, then what is executive bonus compensation considered?

 

[Tim Nelson]

NEW YORK, Oct 5 (Reuters) - US Airways Group Inc (LCC.N: Quote, Profile, Research) said on Friday it expects costs per available seat mile, or unit costs, to rise faster than earlier expected as its reins in capacity.

Amid fears that a slowing U.S. economy will dampen spending on travel, the higher costs could hurt earnings if revenues fail to keep pace.

The carrier said units costs, excluding fuel and special items, would rise 5 percent to 6 percent in the third quarter, higher than a July forecast of a rise of 3 percent to 5 percent.

Fourth-quarter units costs, excluding fuel and special items, are expected to rise 5 percent to 7 percent, compared to the July forecast of a rise of 1 percent to 3 percent.

US Airways said the higher third-quarter unit costs stem in part from a capacity reduction that did not lower costs at the same rate of as past cuts.

Fourth-quarter unit costs were expected to be higher because of an additional 4 percent reduction in capacity.

Higher profit-sharing expenses were expected to burden both the third and fourth quarters, US Airways said in a filing with the U.S. Securities and Exchange Commission.

Seems the 'laptop boys' at the Sand Castle were counting on the IAM throwing profit sharing down the john. Oops. So at least everyone knows the workers are a burden now.

regards,

 

[dexter]

Tim, you mean the bedoins are the burden, we are playing with dirty sand discarded from the castle's fortress.

 

[cactusflyer]

Nice press release from the sand castle.

The lies surrounding the PIT closing then this press release alluding to the fact that profits will shrink because of profit sharing. Whatever.
Maybe our wonderful management team should forgo their bonuses. I mean really, if it weren't for their inept management and inability to deal fairly with the employess just think how much more money this company could be making.

The downward spiral of employee morale conitnues. I just keep wondering when someone in Tempe is going to get a f*****g clue. Good thing I'm not holding my breath.

Doing MY job and ONLY my job. No above and beyond here until I get a da*n raise. Hell, make that until anyone around here gets a decent pay raise.

 

[Harry Callahan]

It's a real slap you know where.

 

[BoeingBoy]

"Fourth-quarter units costs, excluding fuel and special items, are expected to rise 5 percent to 7 percent..."

I haven't done one of these in a good while......wonder how much CASM will be up including fuel.....

The fuel chart of average monthly prices (Y axis is cents/gallon):

Click on chart to enlarge
View attachment 6501

Jim

 

[BlackTail]

WOW! A burden, huh.

Its a burden when you have company that drags it's feet with every labor group in negotiations just to save a penny...

Its a burden when you have a company who cannot figure out why the operation is so poor, and they have to hire consultants instead of look to the employees for the answers.

Its a burden to have inept, arrogant, greedy management, who look down on the true workers at the company.

How much more in your face can this management get! I seriously would like to find who put out this sack of garbage and ask for an apology. BURDEN, because, despite all of the short comings of the company, we miraculously get this giant operation moving every day, and have it make lots of $$$ for Doug and Co. And in return, the company thinks there gonna have to pay us to much in profit sharing.

 

[hula-flyguy]

I think I'm finally immune to the crap they sling at us. I dont mind being a burden.....Just gimme my check. I earned it, I deserve it, which is more than i can say for the so called management of this company.

 

[luvthe9]

INCOMPETENT managment cost money!!

 

[EyeInTheSky]

All I have to say is WHO IS WRITING THE F'ING press releases for US Airways? They are horrible! First, the Pittsburgh (Pittsburg) mispelling, now calling the employee profit sharing a "burden." Holy crap, fire these people and outsource to a PR FIRM -- FAST!

Later,
Eye

 

[US1YFARE]

That is a shame that the burdensome high paying biz customers are gone to offset the burdensome employee expenses.

 

[Pacemaker]

The fourth quarter will be the first in which the company can no longer play a shell game with the numbers and inflate US Airways' financial performance at the expense of America West. All one big happy family now. Funny. I bet those industry-leading margins are about to go away. We will still lead the industry in CASM though.