FWAAA:
Your comment about pension fund contributions is misleading from an accounting standpoint. While it is true that AMR did contribute to its pension funds during the first quarter (although I've forgotten the exact amount) and UAL didn't, neither carrier's operating profit (AMR) or loss (UAL) was affected because such contributions are cash flow items, not income statement (P&L) items. Thus, if AMR had not contributed any money to its pension plans, its operating profit would still have been $23 million. Similarly, if UAL had contributed $1 billion to its pension plans, its operating loss would still have been $250 million. You need to distinguish cash flow impacts from income statement (P&L) impacts.
And while I'm in "rant mode" and wearing my accountant's green eyeshade, it's been claimed (though not in this thread) that the PBGC takeover of United's pension plans won't lower the carrier's operating costs because United hasn't added any funds to the pension plans in nearly a year. That claim is false because it is again mixing a cash flow item (adding corporate funds to the pension plans) with an income statement (P&L) item (the money United pays to its retirees every month, a direct expense). So now with the PBGC takeover, United won't be required to add any more money to its pension funds nor will it send out any more checks to its retirees, the former reducing United's cash flow requirements and the latter reducing its expense levels (CASM).
I hope this little accounting lesson helps.
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