US 2Q results

[jimcfs]

Press Release

Snip...

Unprecedented Fuel Prices Add $390 Million in Additional Costs versus the Second Quarter 2007;

Liquidity Position Remains Strong at $2.8 Billion in Total Cash and Investments at Quarter's End

July 22, 2008--US Airways Group, Inc. (NYSE: LCC) today reported a net loss for its second quarter 2008 of $567 million, or $6.16 per share, compared to a net profit of $263 million, or $2.77 per diluted share for the same period last year. Excluding net special items of $466 million, the Company reported a net loss of $101 million, or $1.11 per share for its second quarter 2008. This compares to a net profit excluding special items of $261 million, or $2.74 per diluted share for the second quarter of 2007, which included $2 million of net special items.

 

[JayBrian]

The average estimate among the analysts was for a loss of $1.30 per share and revenue of $3.27 Billion.

 

[autofixer]

It is interesting that they are cash positive. I know there is all of that GAP stuff, but when I ran my business, if I had a month when my check book had more inflow than outflow, I called that a profit. Even all that being said, if you back out the one time writedown of "good will" (GAP stuff), the operating loss was only 111 million.

 

[BoeingBoy]

It is interesting that they are cash positive.

From what has been reported so far US was cash neutral, at least when rounded to the nearest million as reported. At the end of the quarter they had exactly what they had at the end of the 1st quarter - $2,070 million. That doesn't count the auction rate securities, which were written down in value by another $10 million. Restricted cash went up by $1 million.

Jim

 

[hp_fa]

Does anyone else but me find it interesting that all of the write downs occurred during the same quarter as all of the "Fuel Crisis" publicity and such were at the forefront?

Hide bad news with other bad news. If you are going to take a hit it may as well be a good one rather then a lot of smaller ones.

Of course management will use this rationale to state how valuable they are in making these decisions and will then get some form of increase in net compensation because of their brilliance and value to the company.

 

[whlinder]

-- The Company's a la carte pricing strategy is performing well.
Based on results thus far, the Company anticipates these
programs will generate approximately $400 to $500 million
annually, up $100 million from initial estimates.

Hooray

 

[orioleman]

Does anyone else but me find it interesting that all of the write downs occurred during the same quarter as all of the "Fuel Crisis" publicity and such were at the forefront?

The "real numbers" aren't all that bad as I expected. At first glance it looks like US was still cash positive which is very good performance in a less than perfect operating environment.

The problem I have with US Airways is they as a company have completely lost my trust and as a result EVERYTHING they say, do or publish is suspect.

In any relationship whether business or personal, trust is a critical factor in the success of that relationship.

Same with Credibility, once you lose it everything is suspect. Classic example is the "pad" in the schedule that allowed US to move more or less from worst to first in on time performance. Isom finally "fessed up" that the schedules were indeed padded and cost US a fortune.

I would venture to guess that the padding cost far far more than the cuts in FF perks will save and that is why I do not trust them. They're out there crying that the aviation world is going to hell in a hand basket when what was really going on was the perfect excuse to deliver LESS to the customer under the smokescreen of fuel. NOW we find out it wasn't all fuel but schedule padding that contributed to the operating loss of 100 or so million.

This is but one examlpe of why I have absolutely no trust in US Airways. IMO they are not honorable men and women at the top and anyone doing business with them should take note of their demonstrated lack of credibility and act as they see fit.

Those at the top would do well to consider that it is they who set the tone for the organization. Create an employee friendly environment of trust and empowerment and US develops a reputation for good quality customer service and US maybe makes a profit.

Create the current environment of mistrust, fear & intimidation and lo and behold the company wastes resources on policing and disciplining employees for expressing opinions on the Internet and you get the current situation.

Did anyone ever ponder that if the employees were treated correctly that padding the schedule wouldn't be required to post superior on time numbers this saving the company millions and millions. Perhaps even enough millions to offset the fuel cost? Perhaps by rolling the PHL hub save even more fuel?

Simple human nature dictates that if someone doesn't trust you they will not go the extra mile for you. The mere fact that they monitor the Internet for employee comments is proof positive of exactly the type of people who inhabit the executive suite in Tempe. Only people who lie cheat and steal assume that everyone else does.

They've shown us who they are, now all we need do is believe tham.

Piney WOULD you consider being CEO of this rat dump Airline. If so . PM me and I will
start working on a campaign for you. YOUR the kinda of person this airline needs. Once again THANK YOU
for thinking of us lowly US employees. Everything you say about trust is dead on .

 

[YVINTERN]

Can I be Managing Director, In-Flight Services?

 

[BoeingBoy]

From what has been reported so far US was cash neutral, at least when rounded to the nearest million as reported.

Correction - as someone PM'd me, I needed to put the specs on. US was cash negative in the 2nd quarter by about $60 million, from $2.07 at the end of the 1st quarter to $2.01 billion at the end of the 2nd. Again, that doesn't count the $10 million write-down in the value of auction rate securities that are non-liquid.

Jim