Chip,
Given that ATSB financing is dependent on hitting the revenue goals; do these numbers indicate that such goals are un-obtainable even if all the Unions were to agree to the new concession packages?
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http://www.newsday.com/business/nationworl...ess%2Dheadlines
Airline Shares Fall After More Bad News
By BRAD FOSS
AP Business Writer
December 18, 2002, 4:20 PM EST
NEW YORK -- The most recent bad news from the airline industry shocked even the pessimists, sending stock prices sharply lower on Wednesday and forcing analysts to reconsider widely-held assumptions.
Shares of American, Delta, Continental and other major carriers fell after data from an industry group showed that revenue fell 1.5 percent industrywide in November compared with the same month a year ago.
While the decline might appear inconsequential, it caused a stir because it showed the situation worsening just when everyone thought it was improving, however minimally.
Frankly, we''re surprised by the magnitude of the deterioration, said Jamie Baker, an analyst at J.P. Morgan who had predicted a year-over-year November revenue increase of 1.8 percent.
While a single month of weak results ... doesn''t reverse our belief that revenue trends will improve in 2003, it does chip away somewhat at our conviction, Baker said in a report.
Airline analysts and executives paid little attention to comparisons made between the industry''s financial performance in September and October with its performance during the same months in 2001.
After all, the logic went, this year''s data would undoubtedly look better than last year''s because of the sharp decline in travel in the months immediately after the terrorist attacks.
But that logic was debunked after the Air Transport Association, an industry trade group, released the November revenue data late Tuesday.
Comparing November 2002 revenue with November 2000 revenue -- a 20.6 percent drop -- was no less disappointing, analysts said.
This is not only worse than October''s 16.9 percent drop, but the largest decline all year when compared to 2000, said Michael Linenberg, a Merrill Lynch analyst.
Shares of American fell 80 cents, or nearly 11 percent, to close at $6.64 on the New York Stock Exchange. Delta''s stock dropped $1.02, or 8 percent, to $11.90 on the NYSE, where shares of Continental slumped 75 cents, or nearly 10 percent, to $6.99.
Copyright © 2002, The Associated Press
Given that ATSB financing is dependent on hitting the revenue goals; do these numbers indicate that such goals are un-obtainable even if all the Unions were to agree to the new concession packages?
--------------------------------------------
http://www.newsday.com/business/nationworl...ess%2Dheadlines
Airline Shares Fall After More Bad News
By BRAD FOSS
AP Business Writer
December 18, 2002, 4:20 PM EST
NEW YORK -- The most recent bad news from the airline industry shocked even the pessimists, sending stock prices sharply lower on Wednesday and forcing analysts to reconsider widely-held assumptions.
Shares of American, Delta, Continental and other major carriers fell after data from an industry group showed that revenue fell 1.5 percent industrywide in November compared with the same month a year ago.
While the decline might appear inconsequential, it caused a stir because it showed the situation worsening just when everyone thought it was improving, however minimally.
Frankly, we''re surprised by the magnitude of the deterioration, said Jamie Baker, an analyst at J.P. Morgan who had predicted a year-over-year November revenue increase of 1.8 percent.
While a single month of weak results ... doesn''t reverse our belief that revenue trends will improve in 2003, it does chip away somewhat at our conviction, Baker said in a report.
Airline analysts and executives paid little attention to comparisons made between the industry''s financial performance in September and October with its performance during the same months in 2001.
After all, the logic went, this year''s data would undoubtedly look better than last year''s because of the sharp decline in travel in the months immediately after the terrorist attacks.
But that logic was debunked after the Air Transport Association, an industry trade group, released the November revenue data late Tuesday.
Comparing November 2002 revenue with November 2000 revenue -- a 20.6 percent drop -- was no less disappointing, analysts said.
This is not only worse than October''s 16.9 percent drop, but the largest decline all year when compared to 2000, said Michael Linenberg, a Merrill Lynch analyst.
Shares of American fell 80 cents, or nearly 11 percent, to close at $6.64 on the New York Stock Exchange. Delta''s stock dropped $1.02, or 8 percent, to $11.90 on the NYSE, where shares of Continental slumped 75 cents, or nearly 10 percent, to $6.99.
Copyright © 2002, The Associated Press
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41 AM REACC1 wrote: 
