S&P predicts better 2010 for US Airways
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Dog Wonder
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BoeingBoy
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- Nov 9, 2003
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I think most analysts are predicting a better 2010 than 2009 for the industry as a whole, and worldwide. But most analysts are predicting losses in 2010 for the industry as a whole - just not as large as 2009.
A couple of quotes from S&P's report on US:
The good -
We see LCC's revenues rising about 8% in 2010. We expect a 2% rise in capacity, 6% higher yields and a one percentage point improvement in passenger load factor, along with higher other revenues from increased fees.
The Bad -
Our 12-month target price of $4.50 values the stock at an enterprise value to EBITDAR multiple of about 2.3X our 2010 EBITDAR estimate, still well below the peer average due to our view that LCC lacks the international route network strength of legacy airline peers.
Jim
A couple of quotes from S&P's report on US:
The good -
We see LCC's revenues rising about 8% in 2010. We expect a 2% rise in capacity, 6% higher yields and a one percentage point improvement in passenger load factor, along with higher other revenues from increased fees.
The Bad -
Our 12-month target price of $4.50 values the stock at an enterprise value to EBITDAR multiple of about 2.3X our 2010 EBITDAR estimate, still well below the peer average due to our view that LCC lacks the international route network strength of legacy airline peers.
Jim
I also forcast a better 2010 for LCC...
The grooming for a merger will finally produce the winner... Whom ever that will be... UAL, AA, CO... Alaska, Jetblue, heck SW... I don't really care... As long as DP is no longer in control of my destiny.
Just my opinion...
The grooming for a merger will finally produce the winner... Whom ever that will be... UAL, AA, CO... Alaska, Jetblue, heck SW... I don't really care... As long as DP is no longer in control of my destiny.
Just my opinion...
BuffaloJoe
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freedom
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- Feb 15, 2006
- 3,244
- 274
Unlike the folks at standard and poor’s I’m not going to play pretend and make believe …. All of you who work here know the score , you can see the ebb and the flow day in and day out , you KNOW the health of our company …
Here’s a little background on the rating agencies , does anyone remember sub prime mortgages being securitized ( many many mortgage being grouped together and then sold as a massive investment vehicle ) ? Well guess who labeled these MBS and gave them a AAA credit risk …. BINGO rating agencies like S&P ….
Maybe I’ve gone off the rails , but in the reality which I inhabit the economy is growing ever more unstable as revenue streams are failing to meet projections across all spectrums . Maybe it’s just me , but it always bugged when I hear people talking about an economic recovery … perhaps these people haven’t heard that our government has backstopped trillions of dollars worth of money ? Maybe they haven’t been acquainted with the term “extend and pretend “ which comes from the governments decision to allow banks and other financial institutions to disallow mark to market accounting … I know , sometimes it’s even easy to forget about the occupation in Iraq and the war in Afghanistan that are costing our nation countless hundreds of billions of dollars each year … OH and did I mention our Federal government is broke , along with almost every state government , and the majority of our citizens who live paycheck to paycheck ? Shucks ,call me a reality embracing pessimist , but if our NATIONAL economy is not going to rebound in 2010 then I don’t see how our SERVICE industry airline could possibly bounce back … I mean it’s not like we grow food that countless millions of people MUST have to continue living , no we’re one of five major airlines in a nation with shrinking demand for air travel and continuing over capacity ….
But ,what do I know ?..... I’m just a baggage handler .. :blink:
Here’s a little background on the rating agencies , does anyone remember sub prime mortgages being securitized ( many many mortgage being grouped together and then sold as a massive investment vehicle ) ? Well guess who labeled these MBS and gave them a AAA credit risk …. BINGO rating agencies like S&P ….
Maybe I’ve gone off the rails , but in the reality which I inhabit the economy is growing ever more unstable as revenue streams are failing to meet projections across all spectrums . Maybe it’s just me , but it always bugged when I hear people talking about an economic recovery … perhaps these people haven’t heard that our government has backstopped trillions of dollars worth of money ? Maybe they haven’t been acquainted with the term “extend and pretend “ which comes from the governments decision to allow banks and other financial institutions to disallow mark to market accounting … I know , sometimes it’s even easy to forget about the occupation in Iraq and the war in Afghanistan that are costing our nation countless hundreds of billions of dollars each year … OH and did I mention our Federal government is broke , along with almost every state government , and the majority of our citizens who live paycheck to paycheck ? Shucks ,call me a reality embracing pessimist , but if our NATIONAL economy is not going to rebound in 2010 then I don’t see how our SERVICE industry airline could possibly bounce back … I mean it’s not like we grow food that countless millions of people MUST have to continue living , no we’re one of five major airlines in a nation with shrinking demand for air travel and continuing over capacity ….
But ,what do I know ?..... I’m just a baggage handler .. :blink:
Yeah and everyone predicted a Saints victory yesterday!
Not me! How bout dem Cowboys!!
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