AA reports record 1st quarter income

[WorldTraveler]

http://finance.yahoo.com/news/american-airlines-group-reports-record-110000325.html

nice results ... record first quarter profit

noteworthy that the decrease in fuel costs $1.167 billion is larger than the net income $932

AA's total revenue shrank and RASM growth was negative in all regions, including domestic, except for TATL where capacity was down 8.6%.

Mainline CASM ex-fuel, specials was up almost 6%

AA devoted two paragraphs to the Venezuela currency situation where $644 million is still tied up

Regional capacity grew nearly 6% while mainline shrank.

 

[bikeguy]

Looks like Delta got smoked.....

 

[WorldTraveler]

looks like low fuel costs were all that allowed AA to post the profit it did and that AA's revenue fundamentals are not as good as even UA's - note that AA's RASM on its domestic system went down undoubtedly because of the increased competition at DAL and that Pacific and Latin RASM were both down more than 6%.

AA's mainline CASM ex-fuel was up 6% - costs that won't come down

AA's mainline CASM is now comparable to UA's - and about 5% higher than DL while DL still has a higher consolidated RASM.

AA achieved what it did relative to DL and UA because of a lack of hedges.

when everyone is on the same page regarding hedges and AA also has to deal with its Venezuela currency issues, the industry will look a whole lot less favorable for AA.

 

[eolesen]

Shocking -- had to open WT's post to get the link, just to find one backhanded compliment and five negatives about the quarter.

It's an impressive income number, and AA looks like they've firmly cemented the lowest CASM both with and ex fuel.

I'll comment further in the generic topic in the Airline News thread after I've updated the comparison spreadsheet.

 

[AirLUVer]

Regional capacity growth is due primarily to equipment up-gauges. 44/50 seat jets replaced by 76 jets.

 

[wings396]

Did anyone really ever expect WT wouldn't have to insert anything negative about the record earnings at AA? I suppose that lower fuel costs didn't contribute to the bottom line at DL. He once again fails to recognize that there are still some lingering merger related costs, and the the airlines are not yet fully integrated. Once those key items are behind us, profits should be even stronger.

 

[WorldTraveler]

except, E, AA's mainline CASM ex-fuel/specials is higher than every other carrier.

given that DL is reducing its regional carrier footprint and WN doesn't have one, it is far more significant to compare mainline CASM ex-fuel and specials.

on that basis, AA's CASM growth was the highest and AA and UA are in the same region - higher than other carriers - which is exactly why AA and UA have lost market share to other carriers while DL has been better able to compete successfully against LCCs and take share from AA and UA.

the merger is exactly where most of us figured it would end up - eliminating AA's cost advantage from BK in order to merge with US which has resulted in cutting significant amounts of capacity that don't work for AA/US on a combined, post-merged basis.


add in the increased competition that is coming at DAL and in AA's key Latin region as well as at LHR and the long-term revenue outlook is not strong enough to support higher costs if all carriers are on an equal basis WRT fuel.

AA took $300 million in merger cost charges. that's not the issue.

the issue is that AA's non-fuel, non-specials mainline CASM has grown back to the same percent higher than DL as it was before BK. and those costs won't come down

 

[robbedagain]

great job to all the front line folks at AA/US     
 
wings  no matter how positive anything AA does or gets   there will always be negative to trump it bec its only DL that wins no matter what  

 

[1AA]

Who is, ops I meant what is this topic about?
Really folks.

 

[dfw gen]

AND I AM STILL WORKING UNDER A BANKRUPTCY CONTRACT.....

 

[Monkee]

Typical blather by WT.  He is so into his DL fanboy life that he has no analytical skills left re: AA.
 
Fact....American had a fantastic, blow out the doors quarter, and they are beating the pants off of DL.  It is a beautiful thing when facts continue to destroy WT's endless humping of DL.

 

[jcw]

Just one point - please note who started the DL, AA and UA earnings threads

 

[AA Tulsa Mechanic]

WT go the F@#K away!!! Why are you on the AA board? No life?

 

[Phoenix]

http://finance.yahoo.com/news/american-airlines-group-reports-record-110000325.htmlnice results ... record first quarter profitnoteworthy that the decrease in fuel costs $1.167 billion is larger than the net income $932AA's total revenue shrank and RASM growth was negative in all regions, including domestic, except for TATL where capacity was down 8.6%.Mainline CASM ex-fuel, specials was up almost 6%AA devoted two paragraphs to the Venezuela currency situation where $644 million is still tied upRegional capacity grew nearly 6% while mainline shrank.

Just wait till the 8 minute pad times in the LAX hub wreak their havok.

 

[FrugalFlyerv2.0]

If there was ever any doubt about whether World Fraudster has an agenda or a certain narrative to peddle, all that is needed is a quick glance at what he wrote here:
 
WorldTraveler, on 16 Apr 2015 - 12:06 PM, said:

Wall Street cares most about profits... how a company gets there is up to mgmt.

 
Now go to the beginning of this thread and what do we see/read?
 

AA's total revenue shrank .................
and RASM growth was negative .........................
Mainline CASM ex-fuel, specials was up ......................
AA devoted two paragraphs to the Venezuela currency situation ..........................
 

 

looks like low fuel costs were all that allowed AA to post the profit ....................
AA's mainline CASM ex-fuel was ....................................

 

except, E, AA's mainline CASM ex-fuel/specials is higher than .................
on that basis, AA's CASM growth was the highest ....................

 
So you see, when discussing DL (and all of DL's greatness) the only thing that matters most is profits.
Unfortunately, when a competitor obtains profits that are higher than DL, well now apparently that doesn't matter and the nitpicking starts.
 
Double standards?  You betcha!  That is your WholeTruth!