US 3rd Quarter Results
- Thread starter ebwgs
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PullUp
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Don't let anyone tell you the US Airways route structure/hubs are 'inferior' to the rest.
It has been and always will be about yields - and the east coast, specifically the north east, is where the greatest population concentrations are and where business air travel demand is highest.
The yield/asm figure of 15.21 cents is why every airline wants to be in the northeast. Jetblue, southwest, etc have moved in or set up shop because these are the highest yields in the nation.
True, they could have been much more without the price competition of the new entrants/low cost model companies. Still, you got to give credit to the Tempe financial team. Great with numbers, not so much with labor relations.
But I digress. I just wanted to point out why our brand brings value to a merger partner, rather than being a competitor in the same market.
Cheers.
It has been and always will be about yields - and the east coast, specifically the north east, is where the greatest population concentrations are and where business air travel demand is highest.
The yield/asm figure of 15.21 cents is why every airline wants to be in the northeast. Jetblue, southwest, etc have moved in or set up shop because these are the highest yields in the nation.
True, they could have been much more without the price competition of the new entrants/low cost model companies. Still, you got to give credit to the Tempe financial team. Great with numbers, not so much with labor relations.
But I digress. I just wanted to point out why our brand brings value to a merger partner, rather than being a competitor in the same market.
Cheers.
That figure of 15.21 cents is the consolidated RASM, not yield, and isn't all that impressive - in fact, it's lower than the other legacy competitors. Mainline yield at US was just 13.76 cents, and that's the lowest mainline yield of any of the legacy competitors.
As you probably know, commuter yields are generally higher, making the consolidated yield numbers look pretty good. Since US has about the largest percentage of commuter operations, that should cause the US consolidated yield to outpace the competitors. But given the lower yields of US mainline, it actually lagged the competitors.
Parker is right about one thing: US does not attract yields as high as UA, DL or AA. Because of that, it does not generate PRASM or RASM numbers as high as those competitors. Accordingly, it will be very difficult for US to ever match the others in pay.
WorldTraveler
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The NE is a high cost part of the country to do business... and precisely why US has to be very diligent in cost control given it is harder for it to generate revenue premiums elsewhere.
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US' decision to not try to fight it out in NYC while strengthening DCA is a good step... expansion of low fare carriers in NYC is going to affect all of the market. DCA is alot less delay prone as well which affects costs. DL is counting on the increased mass it gains thru the slot swap to offset the increased competition that will come thru the diverstitures and the increased competition that will come to EWR as WN works thru its slots gained from the UA/CO merger.
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If you don't have the mass to compete with the biggest airlines, you focus on what you can do well. in that regard, US is managing its franchise from a network standpoint probably as good as it can.... even if US employees believe it comes at their expense (of which there clearly is some truth).
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US' decision to not try to fight it out in NYC while strengthening DCA is a good step... expansion of low fare carriers in NYC is going to affect all of the market. DCA is alot less delay prone as well which affects costs. DL is counting on the increased mass it gains thru the slot swap to offset the increased competition that will come thru the diverstitures and the increased competition that will come to EWR as WN works thru its slots gained from the UA/CO merger.
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If you don't have the mass to compete with the biggest airlines, you focus on what you can do well. in that regard, US is managing its franchise from a network standpoint probably as good as it can.... even if US employees believe it comes at their expense (of which there clearly is some truth).
SparrowHawk
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Ah typical "The World Revolves Around Me" Pile-it. There is a 3100 page thread for your issues.
And now to the topic at hand. I thought the numbers were pretty respectable given the economy and fuel costs. Frankly a profit of any kind should be welcome news given the miserable economy. Hopefully some of the profit can be used to reduce debt and also provide a few dollars for employees who richly deserve it.
Move2CLT
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Yip, yip, yip, yip.
Are you guys going to beg Patker even harder?
Reminds me of the DOH cramdown the west was supposed to get. Still LMAO.
robbedagain
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just wondering why this is about qrterly profits yet turning into the same old BS with the same old BS from pilots enough is enough
I agree that any kind of profits in this economy is darn good Im thinkin that US will make a profit for the 4th qrtr and for the yr but when will we know those two things?
I agree that any kind of profits in this economy is darn good Im thinkin that US will make a profit for the 4th qrtr and for the yr but when will we know those two things?
I think the first quarter was 110 million loss, 2nd quarter was 106 million profit...
Iclubbabyseals
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Managers do much more than just manage people. They manage money also, ensuring that profit/loss appears when they feel the corporation needs it. All pretty much legal.
Management gets to do the stupid stuff only when the employees let them.
Many times management goals for labor are not based on financial "need" but "wants", as in bragging rights at the next industry get together. Once the employees understand the difference, the corporation can actually work better for itself.
And no idea about what's in the profit sharing pool... but it looks like a LOT less than last year...
USA320Pilot
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Should I buy the stock now?
