Any quesses on 2Q earnings?

I believe that Chip has hit the operative phrase. A shown profit would make it necessary for the company to begin paying back the 5% pay deferal.

Seeing how other things are being handled..or rather manixxxxted in thier favor all the time , I would have to conclude that things like "One time Charge Off's" or anything else they can conjur up will be used to off-set anything that smacks of a profit.

Sure things are still lean in this business...but we have become equally lean in kind.

Exactly what will it take to show a profit in this enviroment? Obviously "Shrinking to Profitability" hasn't proven to be the golden goose for us. there any word on the negotiations between U and the state of Pennsylvania , n regards to PIT..and of course PHL?

I believe US Airways will post a small operating loss and a net profit due to the May 16 $216 million federal aid payment. However, if the company posts an operating and net profit, then the 5% wage deferral will have to be repaid.

US Airways willr release its earnings on July 28 and hold a conference call with analysts from the investment community at 1:00 pm. All parties are invited to listen via a special Webcast on US Airways' Web site at To listen to the broadcast click onto the link below:


Best regards,


No word yet on any future dates to exhange proposals or discussions about Pittsburgh's fate...

Reason #2 why U will make sure no profit is shown.

I was told my someone high up that they believe the 5% deferral savings the co. gets saves approx $12-15 million per month. Any validity to that? Can someone shine some light? Or does no one on these boards work in "FINANCE" at U?
On 7/24/2003 3:05:12 PM SalesGuyCCY wrote:

Net profit? Loss? Big? small? Just curious what folks think! Chip??

I think that they had to order more RED ink.....
Guys I hate to keep saying this but we lost millions in June due to PHL baggage belt problems and connecting PHL bags in general! CLT didn’t do much better either. BOS spent over a ¼ of a million dollars with the local delivery out fit delivering late luggage in June alone. Wait till you see it multiplied over the whole system!
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So if its an operating LOSS and a net profit, the company does not have to start paying back the 5%?
You can look at it another way and maybe Dave will allow a show of profit so he can save face afterall if he were to give in he would look soooo weak dont ya think? :_)
I think Chip is right too.
Should show a small net profit but operating loss, can't give up the pay "deferral".
Low-cost airlines who posted a second quarter operating income, even without the government handouts, were Southwest, America West, Alaska, and JetBlue.

Every major airline network carrier who has reported earnings, posted operating losses in the second quarter, including American, Delta, Northwest, & Continental.
The four carrier's who have reported earnings should provide a warning sign for those parties interested in US Airways, who will report on July 28, and United who will report on August 1, because it appears US Airways and United will follow the other legacy airline's with an operating loss.

If true, US Airways management will have the contractual right to continue the 5% wage deferral. Moreover, with the pending post Labor Day traffic fall off, September 11 anniversary fear, and winter bookings, I believe the company/industry will not return to profitability until the second quarter of 2004. Thus, US Airways employees may not see the 5% wage deferral repaid until July 2004.

The main issue continues to be that US Airways and other legacy airline costs are still too high to compete with the low cost carriers. Management must continue to cut costs in every area possible and while they're small numbers in and of themselves, the company's bottom line is equally as small. Therefore, anything management can do to tweak costs becomes enormous for airlines with a capital-intensive balance sheets.

With that said, I do not believe US Airways needs to get its unit costs down to Southwest because the Arlington-based airline continues to have a yield revenue premium, however, management must close the cost gap with low cost carrier's to be successful long-term.

Best regards,

HP has a 79million profit for 2nd quarter. Had some from feds but even before that made $29 million profit. Flights are full and phone is busy---but our 65 calls on hold are much better because we're hiring!!!

Those weren't government "handouts". They were payments made in conjunction with the unfuded mandate the government IMPOSED on airlines regarding reinforced doors and other security items. In other words, the government paid for the mandate they imposed. Take away the costs of those mandates and the airlines wouldn't need the government money to show a profit.

Point is that you seem to think Seigel can run this company. At least that is my interpretation of most of your posts. I disagree. He cannot. Look at what he has done SINCE emerging regarding the OPERATION of this airline. He is competent with BK law and such but he is totally inept and running USAirways. He has no leadership skills, no understanding or the importance of a motivated employee group, and little to no idea that the paradigm has shifted in this industry. He thinks RJ's are the answer.

Unless and until Bronner sees the ineptness of this management team and brings in someone who has vision and can operationally get this company functioning, profit will never occur. Carty is out there and knows how to run an airline profitably. I hope Bronner knows it. The only thing going for us is simply that Bronner needs to make money. And Seigel is not going to do that for him. Go get Carty Bronman. Get us someone who can run this airline.

mrplanes..I agree that Siegel is clueless when it comes to running this airline.

He couldn't possibly be aware how badly customer service is being directed. How much longer will we be without leaders. I have seen the future of USAir..ways customer service...The future is PHL express gate operations. Young people, low wages, minimal training. Way to go Dave and Al. Keep those bonuses flowing.