Cash Burn

FlyAA777

Member
Aug 23, 2002
26
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Does anyone have an accurate figure as far as cash flow goes? How long will it take to go through that $300 of DIP?
 
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On 11/10/2002 4:02:39 PM FlyAA777 wrote:

Does anyone have an accurate figure as far as cash flow goes? How long will it take to go through that $300 of DIP?
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Daves Mathmatics 101
Oops at this point it looks as if we done gone through it already. Its a drop in the bucket of the ammount we need to make it....maybe its not only money we need to emerge..
 
4Q Daily Cash Burn Estimates
Carrier Cash Expenses ASMs Yield (cents) Load Factor daily cash burn rate*
Alaska ALK 417 4,760 12.6 67.0% 0.3
America West AWA 509 6,850 9.9 70.1% 0.5
AMR Corp. AMR 3,988 43,700 12.2 68.0% 5.4
Continental CAL 1,655 19,500 11.5 71.1% 1.2
Delta DAL 2,739 32,000 11.4 69.2% 3.2
Midwest Express MEH 80 800 15.8 57.9% 0.1
Northwest NWAC 2,025 22,750 10.9 73.5% 2.9
Southwest LUV 1,195 17,560 12.3 61.4% -1.0
UAL Corp. UAL 3,525 36,800 11.0 70.4% 8.5
US Airways U 1,289 13,100 13.5 66.4% 1.7
* Negative implies cash generation.
Source: Company reports and Goldman Sachs Research estimates.
 
I don't get it. SouthWest is the only company that made money in that list...

I mean, what's up? They don't have RJs yet!!

 
I still think southwest is hiding something, look at some of their fares, no way they can be making money on some of these flights, plus look at some of the passengers that are flying on them.......Does anyone remember 2020 or one of those televisions shows, going on and on, many years ago about People Express, interviewing their employees, about all the millions they were worth, well that went on for several years, their employees that use to speak to me daily telling me how they were worth millions, were out of a job and now begging US to hire them.....I really believe, southwest is hiding something....has anyone ever thought about what their big guys are making in stock......still believe the truth is going to come out.....hear all the time their ramp is paid much more, pilots paid much more and ect, ect.....doesn't make since
 
[P]
[BLOCKQUOTE][BR]----------------[BR]On 11/10/2002 7:45:35 PM flyin2low wrote:
[P]WOW! it looks like UAL will have some problems in the future. <8.5%>[/P]----------------[/BLOCKQUOTE]
[P][/P][FONT face=System]Thats 8.5 mil a day , [STRONG][FONT size=4]not 8.5 pct[/FONT].[/STRONG][/FONT]
 
Hope, what are you babbling about?

[ I really believe, southwest is hiding something....has anyone ever thought about what their big guys are making in stock......still believe the truth is going to come out.....hear all the time their ramp is paid much more, pilots paid much more and ect, ect.....doesn't make since ]

SWA rampers and pilots are not the highest paid.

What the big guys make in stock is part of the 10K filing.

$1M/day that SWA is generating in cash flow is from operations and is not net profit.

SWA's low costs are a matter of record, but I guess this 31 year-old conspiracy will come to light soon enough.

(Moderator)- to delete a post just ask. Done. We are aware of the problem with the error message since the last update and are working to get it fixed. We have not be able to get a time for the repair to this or the **** censor of certain words or phrases. Sorry.
 
Southwest makes a profit due to the lack of expences between the top dogs and the guys on the front lines. And they also keep the front line people happy, which our airline tossed they idea of years ago.
 
[blockquote]
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On 11/10/2002 6:35:19 PM eric wrote:

4Q Daily Cash Burn Estimates
Carrier Cash Expenses ASMs Yield (cents) Load Factor daily cash burn rate*
Alaska ALK 417 4,760 12.6 67.0% 0.3
America West AWA 509 6,850 9.9 70.1% 0.5
AMR Corp. AMR 3,988 43,700 12.2 68.0% 5.4
Continental CAL 1,655 19,500 11.5 71.1% 1.2
Delta DAL 2,739 32,000 11.4 69.2% 3.2
Midwest Express MEH 80 800 15.8 57.9% 0.1
Northwest NWAC 2,025 22,750 10.9 73.5% 2.9
Southwest LUV 1,195 17,560 12.3 61.4% -1.0
UAL Corp. UAL 3,525 36,800 11.0 70.4% 8.5
US Airways U 1,289 13,100 13.5 66.4% 1.7
* Negative implies cash generation.
Source: Company reports and Goldman Sachs Research estimates.

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[/blockquote]
Golman's research teams needs to be a bit more thorough. These figures DO NOT reflect each carriers SEC filings for the third Qrt.
 
Cash burn rate is one of the most misleading numbers in this industry. It is an ever-changing entity, based on numerous factors, such as your accounts payable and receivable schedules, time of year, etc. It's almost impossible to give a daily cash burn rate. All it is is an average of the cash burned through for the entire quarter. Bills are being paid at different times. Also, this time of year cash burn is always higher because advanced booking sales are weaker until you get into the 1st Quarter. So, daily cash burn must be taken in its proper context. I'm not saying it's not important, because it most certainly is. You just have to understand it correctly. This is probably the absolute worst time of year in terms of cash burn for any airline, no matter what the revenue environment is.
 
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