If you don't believe HP was in imminent danger of bankruptcy prior to the merger read this:
http://www.sec.gov/Archives/edgar/data/706...p70508e10vq.htm
Ok this is what I found on that SEC filing you provided, so tell me what it is you want me and others to see??
During the first quarter of 2005, our improved revenue performance substantially offset the impact of record high jet fuel prices as follows:
• Passenger revenues were $575.4 million for the quarter, an increase of $38.1 million from the first quarter of 2004. Passenger revenue per available seat mile (“RASMâ€) was 7.88 cents for the first quarter of 2005, an increase of 7.8% versus the 2004 first quarter, driven by a 5.5 point increase in load factor with no deterioration in yield. The Company’s strong unit revenue improvement was due to more aggressive yield management in the 2005 first quarter and more balanced capacity in the markets served by AWA. Reductions in late 2004 of the Company’s transcontinental flying, which yields were negatively impacted by competitive responses, also contributed to improved period-over-period RASM and yield performance.
• The airline industry and AWA incurred and continue to face an increase in costs resulting from record high jet fuel prices. The average price per gallon of fuel increased 34.6% from 105.3 cents in the first quarter of 2004 to 141.7 cents per gallon in the first quarter of 2005. As a result, aircraft fuel expense for the quarter was $151.9 million, an increase of $37.7 million, or 33.0% from the first quarter of 2004.
Holdings realized a pretax and net profit of $33.6 million, or $0.62 per diluted share, for the first quarter of 2005. During the first quarter we benefited from a $60.5 million gain associated with the Company’s fuel hedging transactions. Of this amount, $11.6 million was net realized gains on settled hedge transactions. The remaining $48.9 million was unrealized gains resulting from the application of mark-to-market accounting for changes in the fair value of the Company’s fuel hedging instruments. The Company is required to use mark-to-market accounting as its fuel hedging instruments do not meet the requirements for hedge accounting as established by Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities.†If these instruments had qualified for hedge accounting treatment, any unrealized gains or losses, including the $48.9 million discussed above, would be deferred in other comprehensive income, a subset of stockholders’ equity until the jet fuel is purchased and the underlying fuel hedging instrument is settled. Given the market volatility of jet fuel, the fair value of these fuel hedging instruments is expected to change until settled.
As of March 31, 2005, Holdings unrestricted and restricted cash, cash equivalents, short-term investments, and investments in debt securities totaled $345.3 million, of which $253.7 million was unrestricted. Although there can be no assurances, we believe that cash flows from operating activities, combined with these cash balances and our financing commitments, will be adequate to fund our operating and capital needs as well as enable us to maintain compliance with our various debt agreements through at least December 31, 2005.