$80 Million Operating Profit In August

[FWAAA]

In a very expensive month, UAL shows an operating profit and a net profit (excluding reorganization expenses).

http://biz.yahoo.com/prnews/050921/cgw050.html?.v=24

Wonder what September will do to the quarterly results?

Nice improvements in any case. Congrats to all.

 

[Winglet]

Makes it easier when you don't have to pay all your bills, doesn't it?

 

[Busdrvr]

Makes it easier when you don't have to pay all your bills, doesn't it?

[post="303788"][/post]​

Which bill? be specific please. 🙄

 

[Borescope]

Shouldn't fuel be included? They make it sound as if fuel is going to go back to last years cost level. Aint gonna happen. All the airlines better be figuring out how to make money with fuel at $70 a barrel.

 

[Busdrvr]

Shouldn't fuel be included? They make it sound as if fuel is going to go back to last years cost level. Aint gonna happen. All the airlines better be figuring out how to make money with fuel at $70 a barrel.

[post="303821"][/post]​

It was and UAL still had an operating profit. Without "special items", UAL cleared 52 million for the month. Keep in mind, Jblu is warning they may lose money this Q, while the real possibility exists for UAL to break even or be profitable (before special items). The legacy carriers will once again rule the sky.

 

[Globetrotter11]

Good to have you back - Busdriver

Your insight has been missed - and is very much needed

 

[coolflyingfool]

As I have stated on other boards and here also, IF you can't make a profit in July and August, then you need to get out of the business. I am glad that UA made money, but don't go running off to the deep end just yet. Just my thoughts......

 

[dc3fanatic]

Shouldn't fuel be included? They make it sound as if fuel is going to go back to last years cost level. Aint gonna happen. All the airlines better be figuring out how to make money with fuel at $70 a barrel.

[post="303821"][/post]​

The article states that it is inclusive of fuel. duh. And fuel is at CURRENT levels of 60-70 / barrel for the month, probably with a deepened crack spread.

Fuel is an operating expense and would be included in 'operating profit/loss'. try, try again.

 

[Borescope]

The article states that it is inclusive of fuel.

[post="303910"][/post]​

You need to read it again. It has an "Ex" in front of it not "In".

" Excluding fuel, mainline unit costs in August decreased 5 percent year-over- year despite the capacity decrease."

 

[Busdrvr]

probably with a deepened crack spread

while I'm a fan of some crack spread... (sorry, couldn't resist) 😛 , I must add that the spread should go back down over time as refining capacity is added, if not here, in other places.

IF you can't make a profit in July and August, then you need to get out of the business

Then it looks like there are quite a few airlines that should be "getting out of the business". I'd venture a guess that UAL will be in the upper echelon for Q3.

Good to have you back - Busdriver

Thanks Globe. I've been here, there just hasn't been much said, and with an extremely busy life (family, full time job and full time school), there isn't enough hours in the day to make a USA320 level of comments, especially that level of comments when they say absolutely nothing constructive or of merit. 😀

 

[dc3fanatic]

You need to read it again. It has an "Ex" in front of it not "In".

" Excluding fuel, mainline unit costs in August decreased 5 percent year-over- year despite the capacity decrease."

[post="303985"][/post]​

that is a unit cost analysis, AND THAT IS APPROPRIATE TO EXCLUDE fuel as it is not indicative of your operational efficiency.

Operational efficiency may speak to your mgmt performance in managing vendor contracts, crew scheduling, property utilization, mtc scheduling, etc . . .

If you wanted to include Fuel in an efficiency calculation, then you would (consider) use Gallons / something, not $'s. Otherwise obscure improved efficiency with fluxuating price.

The Financial RESULTS are INCLUSIVE of FUEL. Which is the part you should care about.

You need to read it again.

 

[FWAAA]

Shouldn't fuel be included? They make it sound as if fuel is going to go back to last years cost level. Aint gonna happen. All the airlines better be figuring out how to make money with fuel at $70 a barrel.

[post="303821"][/post]​

As others have said, UAL made a net profit INCLUDING the price of fuel, excluding the one-time reorganization expenses.

Unit Costs declined substantially excluding fuel, and increased when fuel is included. Like at most other airlines.

But that doesn't change the fact that UAL made a net profit even including very expensive fuel for the month of August.

 

[spacewaitress]

I love this spin!!

 

[Busdrvr]

I love this spin!!

[post="306262"][/post]​

What spin?

 

[dc3fanatic]

I love this spin!!

[post="306262"][/post]​

There's no spin. It's just flat out good results.

Everyone pays more in fuel now, and United has revenue and cost savings to more than compensate.

Where do you see spin?