AA to exceed DL financial margins by end of 2015?

mistified

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Mar 31, 2003
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AA 3Q2014 conference call, Q&A session -

Apparently a analysts looked at the future and crunched the numbers and said "hey, won't you be ahead of DL's operating numbers (financial returns) by the end of next year?"  The answer was "yes".

The company said they expect to EXCEED DELTA's operating margin by the end of next year.
 
I guess we will have to wait and see. Interesting prediction.

 
 
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mystified   now you really did it..   cant wait til we see the fake spin on this one    anyone got the heavy meds cuz someone gonna need it  esp if this comes true
 
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AA and DL are indeed forecasting the same 10-12% operating margin.

but operating margin does not include special charges which could include for AA impairments such as the currency issue or merger related expenses.


We know right now that DL will pay $200-250 million in profit sharing that AA will not.

So, even if AA exceeds DL's operating margin, the employees will not benefit.

how long will AA employees continue to cheer the performance of their company while they are getting far less out of it all.

AA employees are the lowest compensated per employee compared to DL, UA, and WN.

to have come out of BK where AA argued it needed to cut cuts in order to be competitive and then report profits that are on par or exceed that of other carriers is hardly a formula for labor support.

this same story has played out time and time again in the airline industry.
 
Once again he will not stay on topic he has changed the point on employee comp

WT AA made more money than DL and DL dropped operating margin 47%

AA is moving in the right direction and DL is not financially

Once again the employees are working on new contracts and the new FA contract pays better than DL FAs

I expect the other unions to fare as well

If your obsession with profit sharing (because you have one with it) was so great why are there hardly any companies using profit sharing and if it's so great why don't DL employees forgo raises for increasing share of profit sharing as their source of income

So if your story line is - OK your right AA is outperforming DL (thanks for finally admitting it) because DL is spending more on profit sharing and therefore DL is not number 1 - we agree

Thanks for finally admitting albeit via rationalizing DL poor performance away

Can you say operating margin is down 47%
 
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we get that AA had a higher net profit.

you refuse to acknowledge that a big reason why is that AA did not account for taxes and did not share its earnings with its employees.

there is no evidence that DL is moving in the wrong direction.

AA's costs are still growing faster than DL's and AA faces far more risk than DL or any other airline faces due to new competition.

AA also faces a far larger currency issue than the fuel hedging issues that any other carrier faces.

I'm not rationalizing anything.

I am noting that DL is running a solid, sustainable business while AA is living in the honeymoon period post BK where it is enjoying lower employee costs but still has higher overall costs and still is not generating revenue performance on par with other airlines.

it won't take too long before AA employees wake up and realize the honeymoon is over and expect to be compensated for their efforts. The IRS will expect to start getting taxes from AA as well - but that will take several years.

and, no, on a pre-tax operating margin basis - the same thing that you highlight that AA is forecasting, DL and AA are forecasting the exact same percentage at this point.
 
Omg are you now saying AA violated GAAP standards and therefore misstated their financials to report that profit

There is not a single person who can understand how you make this stuff up

I hope you are filing a complaint with the SEC with your accusation

You are so far off the ranch now

You have managed to change subjects again this time to AA financial performance was achieved through cooking the books

Everyone here knows your game

AA beat DL fair and square

AA is up DL is down

Can you say operating margin is down 47%
 
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if fair and square includes paying employees less, then, yes, AA beat DL.
 
most of your AA peers would hardly call being the lowest paid "fair and square"
 
Seriously then I hope DL keeps driving down it's operating margin

You fail to grasp that AA employees have negotiated their comp structure

I would start working now with DL to get salaries reduced and profit sharing increased if it's so lucrative
 
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I don't see DL employees on here asking for DL to reduce their profit sharing so that the company can make more money.
 
you are in a pulpit occupied by one.  Parker must be very grateful to have you.
 
AA employees could care less if the company makes more money at their expense which is exactly what is happening.
 
say it again and again real slowly
 
 
 
"My lower paycheck helps AA win"

"My lower paycheck helps AA win"

"My lower paycheck helps AA win"

"My lower paycheck helps AA win"

"My lower paycheck helps AA win"
 
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WorldTraveler said:
I don't see DL employees on here asking for DL to reduce their profit sharing so that the company can make more money.
 
you are in a pulpit occupied by one.  Parker must be very grateful to have you.
 
AA employees could care less if the company makes more money at their expense which is exactly what is happening.
Thats because Delta cut the payout from 15% to 10% a 33% reduction without any say from the non-union Delta employees.
 
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but they haven't.

DL paid more profit sharing per employee than any airline.

DL pay is increasing faster than at any other airline.

WN's unionized employees got a 1.5% pay raise.

DL employees will get 15% in profit sharing this year.

deal with realities, not what ifs.
 
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