March Operating Profit

[herkav8r]

We have to have some positive news, not just the gloom and doom.

March Monthly Operating Report

UAL today also filed with the United States Bankruptcy Court its Monthly Operating Report for March. The company posted a $54 million operating profit for March. "Although we had a modest profit in the seasonally strong month of March, we need to complete our restructuring to be a viable company," said Brace. UAL met the requirements of its debtor-in-possession (DIP) financing.



The company projects fuel prices for the second quarter, including taxes and excluding the impact of hedges, to average $1.66 per gallon. The company has 20 percent of its expected fuel consumption for the second quarter hedged at an average of $1.31 per gallon, including taxes. Even if fuel prices are in the mid-fifty U.S. dollar per barrel range, United projects it would generate positive operating cash flow in the second quarter.

 

[spacewaitress]

It's obvious now why they waited until AFTER the court hearings yesterday to release the numbers. They're about 15 days late, now I understand why. Still, it is postive news.

 

[uafa21]

So what happens when contracts are all renewed with lower wages, pensions are now gone and the company returns to profitability? High profitability.

This entire thing is a complete mess, but one in which Tilton and company willl get a huge bonus.

 

[herkav8r]

Do you guy's have anything happy to say? You've been hanging around with MrFish to long.

 

[ualdriver]

So what happens when contracts are all renewed with lower wages, pensions are now gone and the company returns to profitability? High profitability.

This entire thing is a complete mess, but one in which Tilton and company willl get a huge bonus.

[post="268554"][/post]​

We aren't going to return to "high" profitability any time soon, unless oil prices come back down to historical norms.....If that EVER happens, I'll worry about Tilton's bonus then.

 

[spacewaitress]

Do you guy's have anything happy to say? You've been hanging around with MrFish to long.

[post="268557"][/post]​

Translation of my post...it's great for the company...and a validation that snakes run it.

 

[JungleClone]

ualdriver,

That's exactly the point. Oil prices are not going to come back down to historic norms....ever. While we might see some modest price cuts for short periods of time, the reality is that the demand for oil and its' by-products has exceeded the supply. Oil is being consumed in much larger quantities than it is being discovered and refined. Just look at the economies of China and India. Their demand skyrockets each year as their economies continue their rapid growth. At some point within the next year or two, what the oil companies and the politicians already know is going to finally become apparent to the mainstream and Wall Street. And then all hell is going to break loose and life as we've known it during our lifetimes is going to change forever. If you think I'm an alarmist, do some research on the topic and what you'll find will downright scare you to the bone. And for an industry that is high-cost and heavily reliant upon oil, the future couldn't look bleaker.

 

[ualdriver]

Jungle-

All I'm going to say to your post is that it is IMPOSSIBLE to predict the price of oil. IMPOSSIBLE. If you really believe what you are posting, that's great. But if you really, really, really believe what you post about oil as true, that means oil prices are going to skyrocket in the future. And if that's the case, you must have your entire net worth purchasing financial instruments that will allow you to profit handsomely from the up and coming huge spike in the price of oil, right? And you will be a billionaire and you can come back on this forum with a great big, "I TOLD YOU SO." But if you're wrong, I wouldn't want to be you. Anyway, unless you're personally putting your entire net worth where your mouth is because you're 100% sure we're about to run out of oil, I suggest you reread my first sentence and your predictions about the future of the airline.

 

[WorldTraveler]

jungle,
ualdriver subscribes to the legacy airline version of the future. "We don't believe something is possible so we won't plan for it" For years, the legacy carriers ignored the warnings that LCCs would grow to the size they are today - and they aren't finished. It's exactly why UA and US are in bankruptcy today - they failed to recognize the changes taking place in the industry and plan accordingly - including by managing the cash accounts and liabilities which is what ended UA in BK; it's also why so few people can understand what DL is doing - they recogize a potential cash crisis and are doing what they have to do so it won't happen.
Resorting to bankruptcy is necessary only because companies fail to plan - or plan to fail.

 

[ualdriver]

No World, ualdriver subscribes to the business theory that your revenues should exceed costs. You come on this forum with very negative views of UAL, fine. I'm not a fan of our past management's decisions, either.

However, you also come on this forum and base your conclusions on facts that are not even true. You made statements, for example, that UAL's 2004 revenue declined YOY when it was clear that it wasn't true. All you had to do was take a look at our Statement of Consolidated Operations for 2003 and 2004 before shooting your mouth off. You have made statements in the past (and also implications) that UAL can't find exit financing. Again, not true. You recently made a statement in another thread that UAL hasn't been paying all of its pension obligations. Again, not true. You made another statement recently in another thread that our CASM's were in the top half of the industry despite having been in bankruptcy all this time. From what I can determine (I quoted my source), again that statement is not true but I could be wrong as my source is based on data 6 months old. I'm still waiting for your data and source to qualify your latest statement on our costs. I'm sticking by mine as I believe it to be accurate and yours wrong, as usual.


World says: "it's also why so few people can understand what DL is doing - they recogize a potential cash crisis and are doing what they have to do so it won't happen.
Resorting to bankruptcy is necessary only because companies fail to plan - or plan to fail."

So World, is this how Delta is recognizing a potential crisis? Looks like some people disagree with you about your assessment. Tons of articles just like this all over the internet yesterday.........

"Delta warned in a filing with the Securities and Exchange Commission on Tuesday that it will record a substantial loss for the rest of the year and will need to file for bankruptcy if its cash reserves fall too low or lenders seek immediate payment of its debts.

Some analysts reduced their expectations for the airline following the warning.

Analyst Bob McAdoo of Prudential Equity Group LLC said in a research note Wednesday that his firm has been concerned "for some time" that the list of steps being taken in Delta's transformation plan is insufficient to fix the airline's problems."
http://biz.yahoo.com/ap/050512/delta.html?.v=6 (for full story)

 

[C54Capt]

We have to have some positive news, not just the gloom and doom.

.... United projects it would generate positive operating cash flow in the second quarter.

[post="268539"][/post]​

Sounds like Bahgdad Bob has surfaced in the PR dept at UAL.

 

[ualdriver]

REMOVED

 

[C54Capt]

Is this the same C54Capt that was on this forum ironically lamenting the downward spiral of airline pilot wages, when he, in fact, was working at a low cost carrier at well below airline pilot market wages in the first place? ...I think you had better stick to a topic to which you have a modicum of understanding.

[post="268869"][/post]​

ualdriver,

It is the very same C54Capt!! I am sorry you didn't see the humor in the irony of my post. For your info , smart guy, I have always made more money flying for my airline than I would have at UAL due to the timing of United's downfall. So take your $hitty little degrading comment and shove it up your a$$. I have chosen to forget more about this industry (at several levels) than you will ever know. I unserstand that if piloting is your only skill set, you must be afraid of what the future holds for you and I feel sorry for you, but point your frustrations and anger at somebody else. Moron.

 

[Bizman]

Is this the same C54Capt that was on this forum ironically lamenting the downward spiral of airline pilot wages, when he, in fact, was working at a low cost carrier at well below airline pilot market wages in the first place?

[post="268869"][/post]​

The wage may in fact be "market" for the LLC's. You may not have been around to remember when CO was going through the downward sprial in wages in the early eighties. United pilots kept telling them to have some balls and don't let this happen, because it is dragging everyone else down. Well now that the shoe is on the other foot and I don't see the UA pilots or US for that matter stepping up to the plate for the rest of the industry. You got a lot of gall coming down on C54Capt, and the answer you got was well deserved.

 

[ualdriver]

REMOVED