Us Airways Posts $720m Net Income For January

[avek00]

US Airways Posts $720M Net Income For January


DOW JONES NEWSWIRES
February 28, 2005 4:26 p.m.

WASHINGTON -- US Airways Group Inc. (UAIRQ) reported $720.4 million in net income for the month of January after taking into account the termination of three defined benefit plans.

According to a Form 8-K filed Monday with the Securities and Exchange Commission, the airline's consolidated statement of operations for January included a gain of $881 million after the court overseeing its Chapter 11 case approved the termination of the benefit plans Jan. 6.

In US Airways Group's monthly operating report, the airline reported a $134.3 million operating loss for January on $478.4 million in operating revenue.

For December, US Airways reported a $58.7 million operating loss, part of the month's $87.8 million net loss, on $526.2 million in operating revenue.

Arlington, Va.-based US Airways filed for Chapter 11 in September 2004 with the U.S. Bankruptcy Court in Alexandria, Va.

-By Bob Braine, Dow Jones Newswires; 202-862-1353; [email protected]

 

[umech]

usairways

IAM :down: :down: :down:

 

[BoeingBoy]

Excluding the non-cash "gain" from the terminated pensions, Jan was clearly not a good month.....

Revenue continued it's downward slide:
Oct - $578 million
Nov - $556 million
Dec - $526 million
Jan - $478 million

Operating losses accelerated after an initial improvement from interim paycuts:
Oct - $55.9 million
Nov - $27.4 million
Dec - $58.7 million
Jan - $134.3 million

Admittedly, Jan is a weak month - always has been and always will be.

Jim

 

[usairways_vote_NO]

Operating losses accelerated after an initial improvement from interim paycuts:
Jan - $134.3 million

[post="251612"][/post]​

Good thing AW was there to pick up the tab

 

[BoeingBoy]

The Jan monthly financial report is here.

Jim

 

[a320av8r]

Would the January results also take into effect the December charges for the "meltdown" which clearly would have rolled over into Jan. Also the snowstorm in January? How much of this "income" is into our cauffers? I wonder how much cash-on-hand we have? $543,063,000? :unsure:

 

[BoeingBoy]

Would the January results also take into effect the December charges for the "meltdown" which clearly would have rolled over into Jan. Also the snowstorm in January? How much of this "income" is into our cauffers? I wonder how much cash-on-hand we have? $543,063,000? :unsure:

[post="251617"][/post]​

My take, in order....

- Probably.
- Even more probable.
- Presumably all, since it is mostly passenger revenue and that's not recognized till transportation is provided.
- Yes - down almost $195 million since Dec 31.

Jim

 

[oldbscaler]

Well gee if U could find 3 or 4 pensions to eliminate a quarter, they could really turn this thing around.

 

[Fatherknowsbest]

Jim, looked at the report. Why is the "goodwill" valued at 2+billion? Seems to me this is just more book keeping by the inept and corrupt. Thought I read some guidelines (SEC related) in 2003-4 how "goodwill" was to be taken off corporate books by 2005.

Anyone want to venture a guess? Originally goodwill was to show some kind of value of PSA/PI purchases long ago.

Also, slight of hand has been used in the past. That one year when Airways made 1 Billion with Wolf, 50% or more was just an accounting change. Money never went to the bottom line.

Will this money (from pension defaults to PBGC) ever touch the bottom line?

 

[BoeingBoy]

Will this money (from pension defaults to PBGC) ever touch the bottom line?

[post="251637"][/post]​

The rest I'll leave up to the accountants among us, but this one I'll take a swing at (and probably miss).

In theory, the "gain" from pension terminations will eventually reach the bottom line. My thinking goes like this - without termination, future payments could have been required to the pension funds. Given the terminations, those future payments will now not have to be made, making the bottom line better in those future years.

What US has done (in terms I can understand) is claim credit now for all the assumed future payments that would have had to be made if the plans weren't terminated. Instead of the savings "trickling" to the bottom line over the years, it shows up as one big amount now (and in this quarter's report, the quarterly report when we emerge from BK, and the annual report for this year).

Jim

 

[avek00]

It's a non-cash gain, meaning that it will never hit the P/L bottom line per se - rather, it is draws down the pension liability carried on the balance sheet.

 

[boeing787]

The writing is on the wall :down:

 

[Winglet]

Smoke and mirrors. Keep an eye on the backdoor of CCY.

 

[usairways_vote_NO]

US executives care to join Martha Stewart in federal prison

[post="251654"][/post]​

USAirways couldn't be that lucky

 

[a320av8r]

I wonder how much of this loss was due passengers booking away after the holiday debacle and our much publicised impending shutdown?
I wonder what the future booking and revenue stream looks like?
I know it isn't rosey given oil and yields, but with the AWAC investment and, hopefully, additional investment coming soon maybe we can pull this out.
I know UVN, UW700, etc. will say no way but how about a reputable source?