calibrator
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Us Airways Results Worse Than Reported
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U is losing $3 million per day. The question is: What regulatory or supervisory agency will allow this trend to continue until some predetermined threshhold is reached? Also, what is that threshhold? It's inconceivable that the greatest financial minds (creditors, DIP, management, the courts, PBGC, ATSB, ALPA, Congress, and you name it) in the country would allow reckless spending and gargantuan losses to accumulate without doing anything. This process has me befuddled. The employees are at the very end of a thrashing tail belonging to a beast that is wandering aimlessly through time with no objective or destination in mind. Yes, there are questions here if anyone cares to answer them.
TheDog2004
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Arthur said:
Apparently no government agency cares how long US Airways (Zombie Airlines) moves along and continues to eat the living.
I'm getting the feeling here that nobody "gets it." U will go on as long as the executives and fat cats that make the "loans" are bleeding money out of the company. Cash flow. Cash flow. Cash flow. Only when the fuel suppliers refuse to deliver fuel will the company shutdown. I would imagine that U is probably on a pay-as-you-go basis with fuel suppliers now. Suppliers that bill monthly could wind up with non-payment of a month's worth of services. Watch the backdoor of CCY carefully as the confusion of the last months and so-called merger talks progress. With all the confusion, there's lots of potential for lots of money to be . . . . well, I don't know the fancy and estoteric accounting term for it, but where I come from its call being "stolen."
USA320Pilot
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All of US Airways' first quarter loss occurred in January and February due the widespread speculation the company would not survive into February and liquidate. Passengers booked away from the airline and to get passengers back the carrier offered deep fare cuts.
US Airways reported a net and operational profit for March even with the $91 million non-cash pension charge.
May and June bookings are ahead of projection and there have been six fare increases during the past seven weeks. These fare increases will not cover the increase in energy costs, but will improve unit revenue.
Regards,
USA320Pilot
US Airways reported a net and operational profit for March even with the $91 million non-cash pension charge.
May and June bookings are ahead of projection and there have been six fare increases during the past seven weeks. These fare increases will not cover the increase in energy costs, but will improve unit revenue.
Regards,
USA320Pilot
WorldTraveler
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US and FlyI cannot enter the lean fall months like this. At least there is Florida and Caribbean travel during the spring to keep things limping along. That all but dries up (or is blown away by hurricanes) for a couple months in the fall. Without dramatic changes, the industry will have to be thinner by Christmas.
I think investors know that US is not sustainable even with significant infusions of cash as evidenced by their demands to cut capacity and reduce losses. Problem is that US' system just took two more body blows this week w/ the entrace of Southwest to PIT and Airtran to CLT. US mgmt is trying to get out of bankruptcy before it becomes obvious how much further US' revenues will be eroded. Unfortunately, they missed their opportunity.
I think investors know that US is not sustainable even with significant infusions of cash as evidenced by their demands to cut capacity and reduce losses. Problem is that US' system just took two more body blows this week w/ the entrace of Southwest to PIT and Airtran to CLT. US mgmt is trying to get out of bankruptcy before it becomes obvious how much further US' revenues will be eroded. Unfortunately, they missed their opportunity.
The real question here is: When does the music stop?
First, USA320pilot, before you say anything, blow it out your A$s. This question is valid, as since 9/11 the only profit GENERATED by U in a non-accounting form, has yet to present itself. With no real plan is sight, and deadlines passed, how and when does the plug get pulled?
First, USA320pilot, before you say anything, blow it out your A$s. This question is valid, as since 9/11 the only profit GENERATED by U in a non-accounting form, has yet to present itself. With no real plan is sight, and deadlines passed, how and when does the plug get pulled?
BoeingBoy
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Airline's CEO may want to check his math
To: US Airways employees
From: CEO Bruce Lakefield
Re: A minor miscalculation
To: US Airways employees
From: CEO Bruce Lakefield
Re: A minor miscalculation
BoeingBoy
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I think it's safe to assume that it was "tongue in cheek" by the author.
On another note, First Call has issued a new report on US and apparently the two analysts forecasting US earnings have revised downward. All estimates are per share (roughly 56 million shares outstanding), and only one analyst is giving quarterly guidance past this quarter.
2Q05 revised to a loss of $1.85 from a loss of $0.16
3Q05 to a loss of $1.80 from a $1.24 loss
4Q05 to a $2.60 loss from a $2.10 loss
For annual figures:
2005 revised to a $12.15 loss from a $7.72 loss
2006 to a $4.13 loss from a $3.00 loss.
Jim
On another note, First Call has issued a new report on US and apparently the two analysts forecasting US earnings have revised downward. All estimates are per share (roughly 56 million shares outstanding), and only one analyst is giving quarterly guidance past this quarter.
2Q05 revised to a loss of $1.85 from a loss of $0.16
3Q05 to a loss of $1.80 from a $1.24 loss
4Q05 to a $2.60 loss from a $2.10 loss
For annual figures:
2005 revised to a $12.15 loss from a $7.72 loss
2006 to a $4.13 loss from a $3.00 loss.
Jim
