3rd quarter results

[88 B.T.D.]

US Airways Group, Inc. LCC today reported its third quarter 2009 results. For the third quarter, the Company reported a net loss of $80 million, or $(0.60) per share. This compares to a net loss of $866 million, or ($8.46) per share for the same period last year. Excluding special items, the Company reported a net loss of $110 million for its third quarter 2009, or ($0.83) per share. This compares to a net loss excluding special items of $243 million, or ($2.36) per share for the same period last year.

 

[Justme]

From: By: The Associated Press | 20 Oct 2009 | 01:26 PM ET

BY THE NUMBERS: As of Tuesday, the average of analysts surveyed by Thomson Reuters was for a loss of 94 cents per share on revenue of $2.71 billion.

OK, beat expectations by 34 cents a share..... not bad.....

I'll go out on a limb......I see black in the 4th Quarter....


And I see a different report from the OP, is it an apples and oranges situation? Below reports net loss of $60 excluding fuel hedging and net special charges vs. just special charges on the OP.

"Excluding gains/losses on fuel hedging transactions and net special charges, the company reported a net loss of $60 million for the third quarter 2009. This represents an improvement of $251 million versus the third quarter 2008 loss."

 

[goodgirl37]

From: By: The Associated Press | 20 Oct 2009 | 01:26 PM ET

BY THE NUMBERS: As of Tuesday, the average of analysts surveyed by Thomson Reuters was for a loss of 94 cents per share on revenue of $2.71 billion.

OK, beat expectations by 34 cents a share..... not bad.....

I'll go out on a limb......I see black in the 4th Quarter....


And I see a different report from the OP, is it an apples and oranges situation? Below reports net loss of $60 excluding fuel hedging and net special charges vs. just special charges on the OP.

"Excluding gains/losses on fuel hedging transactions and net special charges, the company reported a net loss of $60 million for the third quarter 2009. This represents an improvement of $251 million versus the third quarter 2008 loss."

Its just amazing that UAL lost less than US and AMR... I thought it would be the other way around.

 

[UPNAWAY]

AMR lost was very bad, They have had no traction in any of the improvements the others have seen. Plus their labor situation is probably worse than any of the others.

 

[redheadtempe33]

US Airways Group, Inc. LCC today reported its third quarter 2009 results. For the third quarter, the Company reported a net loss of $80 million, or $(0.60) per share. This compares to a net loss of $866 million, or ($8.46) per share for the same period last year. Excluding special items, the Company reported a net loss of $110 million for its third quarter 2009, or ($0.83) per share. This compares to a net loss excluding special items of $243 million, or ($2.36) per share for the same period last year.

-.60 a share is not good but FAR better than was expected by analysts.

 

[ROACLT]

-.60 a share is not good but FAR better than was expected by analysts.

Minus special charges, operating profit was 23 million. That is actually a decent result, given current climate on financial operating performance of the airline.

 

[FWAAA]

AMR lost was very bad, They have had no traction in any of the improvements the others have seen. Plus their labor situation is probably worse than any of the others.

I'd say that LCC's loss was "very bad" as well, especially given LCC's supposed "advantage" of not being as dependent on international flying as AMR. Didn't Parker say something like that earlier this year? Didn't he say that LCC was somewhat better off in this recession because of its smaller international schedule?

AMR's loss was only slightly larger than LCC's loss when measured as a percentage of revenue.

LCC just reported a net loss of $110 million, excluding special items while AMR lost $265 million, excluding special items. AMR's revenue, however, is nearly double that of LCC.

Anyway, both AMR and LCC reported dismal results, considering that UAL's net loss (excluding special items) was only $65 million and Delta just reported a net profit of $51 million excluding special items.

 

[BoeingBoy]

It appears that the ala carte fees aren't generating quite the revenue they were advertised to generate. A year ago the extra revenue was supposed to be "$400-500 million per year". Earlier this year the number changed to "at least $400 million per year". Despite added additional fees sand increasing others since then, total "other operating income" for the first 9 months was $277 million - about $92 million/quarter or $368 million annualized - and that includes revenue from charges that predate ala carte like 3rd, overweight, oversized checked bags, UM fees, etc, Never bashful about saying how great the company is doing, though, US now says that the latest changes will allow ala carte to generate "over $500 million per year" in extra revenue.

Jim

 

[rvolkcpa]

It appears that the ala carte fees aren't generating quite the revenue they were advertised to generate. A year ago the extra revenue was supposed to be "$400-500 million per year". Earlier this year the number changed to "at least $400 million per year". Despite added additional fees sand increasing others since then, total "other operating income" for the first 9 months was $277 million - about $92 million/quarter or $368 million annualized - and that includes revenue from charges that predate ala carte like 3rd, overweight, oversized checked bags, UM fees, etc, Never bashful about saying how great the company is doing, though, US now says that the latest changes will allow ala carte to generate "over $500 million per year" in extra revenue.

Jim

Isn't some of the reduction in ala carte revenue due to the restoration of free beverages in coach?

 

[BoeingBoy]

A little, although that ala carte experiment was short lived and didn't start till well after last years "$400-500 million in additional revenue" forecast. The effect was more like a blip. The drop in traffic should have had a lot bigger effect although US said it wouldn't be as affected as other carriers because of less international exposure, as pointed out by FWAAA.

The problem that US and other ala carte happy carriers may face is losing traffic to carriers that either charge lower or no ala carte fees. The bean counters excel at forecasting how much a given fee will increase revenue - X number of passengers will pay $Y amount. In the halls of Congress, it's called static accounting - if A is done and nothing else changes the result will be Y. That breaks down in the real world where actions have consequences. The beancounters weakness is forecasting what effect the fees will have on the number of passengers - if a $25 bag fee means not selling a $150 ticket where's the extra revenue?

As US management has pointed out often, price is a driving factor in the selection of a carrier. As time goes by more and more passengers will become more savy about which airlines charge additional or higher fees and make their carrier selection accordingly.

Jim

 

[redheadtempe33]

The beancounters weakness is forecasting what effect the fees will have on the number of passengers - if a $25 bag fee means not selling a $150 ticket where's the extra revenue?

Jim

In my observation at least, it isn't that we aren't selling tickets (our load factors are fairly high), it is that people are just bringing their bags on board (often regardless of size). If they get checked at the gate, no harm no foul (and no money).

 

[BoeingBoy]

(our load factors are fairly high)

Cut capacity and drop ticket prices and load factors go up - no magic involved and nearly all the carriers have been doing just that. But the low fares are unprofitable and the airline shrinks (raising CASM) so how long can an airline survive by producing a high load factor that way? As has been said occasionally, an airline can lose money with 100% load factors.

You're undoubtedly right about bags - those passengers that are able to keep from checking a bag or get around the fee by gate checking do so. But not everyone is able to do that.

It's been said for decades that a couple of passengers more or less on the average flight is the difference between profits and losses. Obviously that's something of an over-simplification - when the economy is in the dump the difference is more or less lost and when the economy is good it's more or less profit. But overall the adage is true - airlines operate on small margins over time. So it's not huge affects easily seen but rather small differences that make the difference.

Jim

 

[Glucose Intolerant]

The problem that US and other ala carte happy carriers may face is losing traffic to carriers that either charge lower or no ala carte fees. The bean counters excel at forecasting how much a given fee will increase revenue - X number of passengers will pay $Y amount. In the halls of Congress, it's called static accounting - if A is done and nothing else changes the result will be Y. That breaks down in the real world where actions have consequences. The beancounters weakness is forecasting what effect the fees will have on the number of passengers - if a $25 bag fee means not selling a $150 ticket where's the extra revenue?

As US management has pointed out often, price is a driving factor in the selection of a carrier. As time goes by more and more passengers will become more savy about which airlines charge additional or higher fees and make their carrier selection accordingly.

Jim

Spot On Jim

 

[PHX-F/A]

AMR lost was very bad, They have had no traction in any of the improvements the others have seen. Plus their labor situation is probably worse than any of the others.

Well there you go, there's our next merger partner. To be named Bad and Badder Airways

 

[UPNAWAY]

But the low fares are unprofitable and the airline shrinks (raising CASM) so how long can an airline survive by producing a high load factor that way?

Jim,
Apparently a long, long time……the one and virtually only thing this wacky industry has going for it is cash flow and that cash flow lets them live for another day. It is not just US Airway, airlines have been limping along financial almost forever. I think it takes a lot to kill off one of the big boys these days.
We could survive quarters like this for years.