$305 Million 2Q Profit

[FWAAA]

While I congratulate everyone on the huge quarterly profit (and lament that everyone had to give up so much over the last 4 years to get there), let's be realistic: Every legacy airline not currently in BK is gonna report a big profit this quarter. I'm not sure I'd be quick to credit management for what higher fares and a strong economy have done for the legacies so far this year.

 

[HPearlyretiree]

Well let's see, it's 20 more widebodies than America's Worst would've EVER seen. So what were the career expectations for a SW regional carrier with NO widebodies? Just wondering if that measures up to a "reasonable" person's standard? Or perhaps the ALMIGHTY AMERICA WEST had a secret order for 100 787's/380's and were secretly planning to take over the world. Don't think so.

You really need to lighten up. I hope you aren't like this to the customers.

Its a PROFIT! Something the airline biz hasn't seen for a while. Take a day off of being negative as hell and enjoy the fact that you work for a profitable airline, and after that day, you can go back to being so full of nastiness.

 

[EyeInTheSky]

Hey all,
I listened to 'Doogie's' Web cast and quite frankly -- ALPA, AFA, IAM are in for one hell of a fight. In a nutshell, there is no "need" or "hurry" to get these contracts integrated. One analyst boldly stated since what's going is "so successful" why merge, why not "operate the companies separately?" 'Doogie' went on to say they can do that, but it would be "better" to have work groups under one contract -- "It's a better way to run an airline," says 'Doogie.' Remember those words folks, "a better way to run an airline." I have a feeling the definition will change to suit management's needs. Let the company rake in big profits for years. Don't offer cost of living increases and fair pay? You'll have a mutiny on your hands and that's no path to "a better way to run an airline." 'Doogie' better brush up on some PSY 101 classes because human nature will rear it's ugly head when it feels it is being taken advantage of.

Eye

 

[lynyrdskynyrd]

Well let's see, it's 20 more widebodies than America's Worst would've EVER seen. So what were the career expectations for a SW regional carrier with NO widebodies? Just wondering if that measures up to a "reasonable" person's standard? Or perhaps the ALMIGHTY AMERICA WEST had a secret order for 100 787's/380's and were secretly planning to take over the world. Don't think so.

Not all of us are drooling over your widebodies, I don't expect to have access to them, and hold on to your hat, I think that is only right. Just let me keep my little old 37 left seat out west and thats the last you'll hear of me.

I never lifted a finger to leave AWA even as we were ridiculed by everybody all those years, so believe me, retiring from a 737 will be just fine. I only hope that we eventually get some NGs.

 

[EricLv2Fish]

It's amazing how fast a good profit turns negative. The ALPA release is over the top. Remember airline profits usually don't last long. Of the carriers will get crazy add alot of capacity and drive down revenue and profit.

I think they are serious about modest growth. From what I've seen and heard over the past 5 years by DP gives every indication that he is extremely cautious when it comes to spending and growth in today's environment.

 

[PITbull]

Pitbull, I think you are the one that is confused.

While I'll be the first to agree that labor gave alot back to the company so that it can be in the position to post a profit. For any group to take more in wages/rule/befifits than the current plan is irresponsible. The profit share is designed to reword employees when everything is working well, and to keep the status quo when it is not working as planned.

Just because the company has a good profit, it does not mean it is awash in cash. Cash does not equal profit.

Also, profit (other than dividends) is not a reward for non-labor. It is out of profit where loans are repaid, new assets purchased. The company needs both to keep moving forward and keep producing profit each quarter, and paying out profit sharing.

36 mil is a pretty good sized chunk to share, even though it is probably less than what was given up by labor.

No Sparky...no confusion here. Its pretty damn crystal clear...that's not how the profit sharing piece works.

Profit sharing DID NOT TAKE THE PLACE OF WAGE INCREASES AND BETTER BENEFITS.

The profits sharing for the f/as may come to a gross of aprrox. $600. That's basically $50 a month...

Labor needs to negotiate while the transition agreements are being negotiated.

 

[whodoiworkfor]

Just for one day, can't everyone just be proud to work for a profitable airline. For one day, can we just forget about east-vs-west and who was better and who saved who. We made a profit, we made it by busting our butts (all of us EAST AND WEST) and it is something that everyone should be proud of. Lets hope there are many more profitable quarters because then management cannot deny us the money we have earned. For once, let there be peace. The enemy is not each other it is our competition!

 

[FWAAA]

If I read it right SWA realized $55 Million of its profit from hedges.



I wonder what Gary Kelly thinks of all of this?

Southwest realized $225 million of cash benefit from its hedges in the second quarter.

What's Gary Kelly think? The other day, he mentioned that WN is looking for used planes so he can grow even faster - presumably, to go after some of those high US profits. 😀

For your list: AMR made $291 million on $5.975 billion of revenue.

 

[SKY HIGH]

So why couldn't EAST make a profit before? <_<

sky high states:
GOLDEN PARACHUTES: WOLF...GANGWAL..SIEGEL...LAKEFIELD...
GEEZ, WHO MAY I MISSING???? :down: :down:

 

[SKY HIGH]

Labor needs to negotiate while the transition agreements are being negotiated.

sky high states: Right-OOO. Traditionally, Labor gives in bad times and recoups their losses during GOOD. And, the "forecast" is GOOD TIMES for the entire year. Share the wealth!
What a pitiful contract for the next SEVEN years. :down:
They can do, BETTER!

 

[USA320Pilot]

LCC very solid 2Q on exceptional revenue trends

Lehman Brothers – July 27, 2006

US Airways posted an excellent quarter this morning. While a bit better than our estimate and the consensus, investors should recall that numbers significantly exceed expectations that existed at the beginning of the quarter.

* Reported 2Q profit of $3.35 (x-items) shy of our $3.40 estimate after a small tax accrual. Our pre-tax estimate was $319mm and the company achieved $321mm. Consensus for the quarter was $3.24. Revenue and costs were higher than our forecast, with moderately better than expected net interest expense.

* Cost progress was evident in the quarter, as stage adjusted mainline unit cost excluding fuel and charges by our calculation came in at 7.27c for AWA and 7.97c for US Airways, in line with what we believed to be an aggressive goal upon announcement of the merger. We expect more progress over the next several quarters as the integration process continues.

* Unit revenue at America West and US Airways increased 18.6% and 28.8%, both ahead of the industry's 15.9%, which reflects the benefits of East coast downsizing and network rationalization. Express results were also very strong. There is a lot of revenue tailwind behind US Airways as the carrier rightsizes its own network, Delta downsizes and Independence no longer operating.

* Capacity and cost guidance not out yet, but given very recent update, we expect little change on that front.

* We expect the focus of today's call to be around the sustainability of what have been to date surprisingly strong revenues. We see moderation in second half RASM comps, especially in 4Q, not marking erosion in the underlying strength, but reflecting the beginning of the company's RASM gains in the second half of last year.

Regards,

USA320Pilot

 

[rjh]

Hmmm Didn't Boeing Boy post a similar thread? Perhaps this one should be consolidated?

Hey what do I know? Who am I? A mere customer & Sales Trainer to question a pilot?

who really cares if there's duplicate threads??

 

[SegmentKing]

Just let me keep my little old 37 left seat out west and thats the last you'll hear of me.

Lynyrd,

there is one better seat than the 7dirty7 left seat in the "new usairways" network...

row 1 in Envoy Airbus A330 🙂 it's fabulous!!

 

[USstew23]

Not all of us are drooling over your widebodies, I don't expect to have access to them, and hold on to your hat, I think that is only right. Just let me keep my little old 37 left seat out west and thats the last you'll hear of me.

I never lifted a finger to leave AWA even as we were ridiculed by everybody all those years, so believe me, retiring from a 737 will be just fine. I only hope that we eventually get some NGs.

Sorry that was not a blanket statement to everyone at AWA, I personally could care less about who had any widebodies, guess I'm just tired of certain people thinking that a certain airline was some major powerhouse when in reality the small profits were at the expense of the underpaid employees. I agree with you about the 737 and hope that we will see some NG's running around here pretty soon.

 

[EricLv2Fish]

Southwest realized $225 million of cash benefit from its hedges in the second quarter.

What's Gary Kelly think? The other day, he mentioned that WN is looking for used planes so he can grow even faster - presumably, to go after some of those high US profits. 😀

For your list: AMR made $291 million on $5.975 billion of revenue.

Our CASM is lower than all but SWA I do believe and those numbers above prove it. We have better routes, more perks and a hub and spoke...and they are hedged way more than we are. United and Delta even though they have gotten huge wage concessions aren't even close to our CASM. We did expectionally well and we should all be proud!