More Fun & Games.

Analysts are projecting 195 million operating loss at UA this quarter, plus any special items and goodwill write downs. No chapter 11 at least through 2nd/3rd quarter 09. DL is projected to have an operating profit however to loose money once all special items are factored in.

Q2 Profit/Loss Margin Dollar Amount
WN +2.8% +80
DL +.4% +20
AS -.4% -4
CO -1% -41
B6 -1.5% -13
US -1.8% -60
FL -2.1% -15
UA -3.6% -195
NW -3.7% -127
AA -5.5% -337
 
I don't believe that Bankruptcy Court is a good place to be these days. If any of you heard the remarks yesterday from the CEO of JP Morgan, he has no respect for Bankruptcy Judges. The airlines have probably worn out their welcome. BTW, whatever happened to Judge Wedoff, United's BK Judge? Was he forced off the bench or is he still there?
 
I don't believe that Bankruptcy Court is a good place to be these days. If any of you heard the remarks yesterday from the CEO of JP Morgan, he has no respect for Bankruptcy Judges. The airlines have probably worn out their welcome. BTW, whatever happened to Judge Wedoff, United's BK Judge? Was he forced off the bench or is he still there?

Alive and well: Judge Wedoff

B)
 
Quoting today's business news:

The parent of the No. 2 U.S. airline said in a filing with the U.S. Securities and Exchange Commission that the bulk of the charges -- $2.2 billion to $2.3 billion -- is due to the writedown of non-cash assets.

"The company has concluded that the entire value of goodwill on its books has to be written off," UAL said in the filing.




So, it looks like a bigger than anticipated loss.

Any accountants out there to explain the non-cash asset write down and exactly what the meaning of the value of goodwill is?

I googled the term and what came up mentioned acquisiton. Does this mean CAL is stepping up?

What a crappy way to start the weekend.
 
So, it looks like a bigger than anticipated loss.

Any accountants out there to explain the non-cash asset write down and exactly what the meaning of the value of goodwill is?

In a nutshell, Goodwill is an imaginary asset representing the difference between the fair market value of the assets and the depreciated value shown on the balance sheet. It can arise as a result of an acquisition when the acquirer pays more than fair market value for the assets. When an acquirer pays a huge premium over the market price, the difference is often attributed to "goodwill." But in this case, it's because the UA assets were not worth as much as the total debts after the bankruptcy, so the asset side was inflated to avoid a negative number for shareholder equity. Enter huge Goodwill "asset."

I googled the term and what came up mentioned acquisiton. Does this mean CAL is stepping up?

What a crappy way to start the weekend.

No, this has nothing to do with CAL or any other airline. UA is just admitting that its imaginary intangible asset labeled goodwill has no value, so it's writing it off. Result? Huge non-cash, completely paper loss. Doesn't cost anything. This news should have no impact on your weekend, so have a great weekend.
 
$875m... definitely not a Chp. 7 as someone earlier suggested.

Now why dont you think Ch7? Ch 11 was already used and the financial world of our economy will probably not be willing to shell out more money to help consolidate more debt without forcing those that already used the BK system to liquidate assets first...planes, routes, etc. While Ch7 may not be the route, the BK court will definitely force them to liquidate some things first before going in to Ch11 yet again...
 
?
Did you spell your nom de plume incorrect?

I believe that character # 2 should be a 'T' and character # 6 should be a 'D'.

JMHO

B) UT
 
IIRC, the Wall Street consensus estimate for UA's 2Q 2008 net loss was $195 million before special items. But I'm beginning to believe the number might be somewhat better than that. First, the three carriers that have already reported (AA, CO and DL) all had results before special items that were a good bit better than the analysts expected. Second, the new bag fees are apparently bringing in a lot more money than initially forecast, with DL (at least I think it was DL) saying that they gained alot of added revenue from that fee alone. UA should see at least as much added revenue since they started the bag fees earlier. And third, one of the analysts upgraded UA's stock this morning, indicating (to me) that a negative surprise in UA's 2Q results was very unlikely.

So based on the above factors, my guess (and it really is a guess) is that UA will announce a net loss of $125-$150 million and an operating loss of $75-$100 million for the quarter, both before special items.

But hey, I've been wrong before! :lol: :shock: :lol:

Of course, the most important number to look for is UA's cash position. They previously said that it would drop by $100-$200 million compared to the first quarter's level of $2.9 billion in unrestricted cash (and equivalents). I haven't a clue whether this number will go up, down or stay the same as forecast. I guess we'll see next week.
 
3 pages of 'Fun and Games' yet when the stock soars and the loss isn't as bad you assumed (hoped?), not a peep. :ph34r:

:lol: :up:

Have a great day.....I will.
 
Given everything going on in the industry, I thought UA did quite well in the second quarter. A loss is still bad, but it was a lot less bad than I and most others expected. :up: And while I didn't want to brag, :p I thought my predictions above were pretty darn accurate (and a lot lower than many others thought it would be). But as I said, I don't want to brag! :lol: :cool: B) :D