usairways expects 1st q loss.

[etops1]

US Airways expects 1Q loss. February 21, 2008 3:04 PM ET

The carrier cites high fuel prices and a softening economy.

US Airways estimates a 1 cent per gallon increase in fuel prices results in a $16 million increase in annual expense.

"In this environment, we currently expect to post a loss for the first quarter of 2008," the airline said in the filing. "In the event this environment continues through 2008, we believe we are well positioned due to our current cash position and the debt restructurings completed over the past two years."

In the first quarter of last year, the airline's net income rose slightly to $66 million, or 70 cents per diluted share, from $65 million, or 76 cents per diluted share, in the year-ago period.

Excluding special items, Arizona-based US Airways (NYSE:LCC) had a net profit of $34 million, or 37 cents per diluted share, in the first quarter of 2007.

As of Dec. 31, US Airways had cash, cash equivalents and investments totaling $3 billion, of which $2.53 billion was unrestricted.

Investments include $353 million of auction-rate securities that are classified as noncurrent assets on the company's balance sheet

 

[NoMoreKoolAid]

I think everyone saw this coming.
I'm sure Doug needs to get the stock down pretty low for something to happen in the merger mania arena.
Also, with union contracts going on they have to show we are loose money.
I for one will not pay for this management HUGE mistakes in concessions.

 

[US1YFARE]

The carrier cites high fuel prices and a softening economy.

I'm sure the departure of VFF's hasn't helped matters.

 

[Harry Callahan]

Thanks to the change in Div. Miles program lots more will leave.

 

[flybynite]

With this kind of news, I don't see any improvements in any of our contracts. They will be digging their heels in.

Well, come to think of it....they have had their heels dug in for a while. <_<

 

[Henderfuzz]

Well like it or not fuel cost is what it is. It is a huge cost to all carriers.
For your information CO also said it expects a 1Q loss as well. So I guess there not telling the truth either. Come on people I dont care for this mangement anymore than most but we must accept this as was it is.

 

[Rook]

Well the sandcastle will put out everything and anything to keep the contracts neg. down.
Besides I thought that US was hegding fuel for the next couple of years!!!!!

 

[autofixer]

I saw Dougie on CNBC a few weeks back, and he estimated an extra $800,000,000 in fuel costs alone this year. We made a little over $400,000,000 in '07, so that is about a $400,000,000 loss this year. Fuel cost are not coming down substantially, so all of the airlines better figure a way to make money at fuel costs over $100 per barrel.

 

[BoeingBoy]

Based on current First Call consensus, here's the estimates for the 1st qtr:

AMR ($1.02)/sh X 249M shares outstanding = ($254M)
CAL ($0.54)/sh X 98M shares outstanding = ($53M)
DAL ($0.29)/sh X 292M shares outstanding = ($85M)
LCC ($1.28)/sh X 92M shares outstanding = ($118M)
NWA ($0.20)/sh X 262M shares outstanding = ($52M)
UAUA ($1.60)/sh X 118M shares outstanding = ($189M)

Jim

 

[Informed1]

I saw Dougie on CNBC a few weeks back, and he estimated an extra $800,000,000 in fuel costs alone this year. We made a little over $400,000,000 in '07, so that is about a $400,000,000 loss this year. Fuel cost are not coming down substantially, so all of the airlines better figure a way to make money at fuel costs over $100 per barrel.

Well it just seems simple to me...RAISE THE FARES! Everything else has gone up as a result of fuel prices. Why are airfares the only thing going down? Even a cup of coffee at Starbucks has increased in price by almost 40 cents in the past three years because of fuel costs associated with delivering milk, supplies, etc. But rather than raise the fares, God forbid, they will continue to loose money and squeze more out of the employees. It amazes me how if the airlines try to raise prices people throw a fit, but no one has picketed the gas pumps lately....

 

[JoeDirt]

Well it just seems simple to me...RAISE THE FARES! Everything else has gone up as a result of fuel prices. Why are airfares the only thing going down? Even a cup of coffee at Starbucks has increased in price by almost 40 cents in the past three years because of fuel costs associated with delivering milk, supplies, etc. But rather than raise the fares, God forbid, they will continue to loose money and squeze more out of the employees. It amazes me how if the airlines try to raise prices people throw a fit, but no one has picketed the gas pumps lately....

Thats the truth. Look at the cost of a gallon of milk as a good example. The cost of every thing is going up at an alarming rate and is the direct result of the increase in fuel prices. Raise the airfares because the public sure cannot affort to drive to their destination.

 

[JoeDirt]

Boeing Boy
How many passengers do we carry in a year and how much revenue would a $10 to $20 fuel surcharge generate?

 

[BoeingBoy]

According to the just-released annual report, US (mainline + Express) carried about 85 million passengers in 2007 - meaning a $10 average fare increase or fuel surcharge would offset the anticipated $800 million in extra fuel expense for 2008.

Jim

 

[JoeDirt]

Thanks I knew if anybody could answer that question you could.

 

[legacy-to-LCC]

Well like it or not fuel cost is what it is. It is a huge cost to all carriers.
For your information CO also said it expects a 1Q loss as well. So I guess there not telling the truth either. Come on people I dont care for this mangement anymore than most but we must accept this as was it is.

this is really a no brainer for our america west management. they are quite apt at passing higher costs (either real or imagined) to their best customers...so, my crystal ball reveals that they will just continue to punish this most precious customer demographic...just in more "innovative" ways...