What is going on at United???

[KarmaPolice]

Delta and AA make about 400 million, and United loses 489?



United Announces First-Quarter 2014 Results

CHICAGO, April 24, 2014 /PRNewswire/ -- United Airlines (UAL) today reported a first-quarter 2014 net loss of $489 million, or $1.33 per share, excluding $120 million of special items. Including special items, UAL reported a first-quarter 2014 net loss of $609 million, or $1.66 per share.

Historic severe weather increased United's first-quarter loss by approximately $200 million.
United's consolidated passenger revenue per available seat mile (PRASM) decreased 2.0 percent in the first quarter of 2014 compared to the first quarter of 2013. Weather-related cancellations reduced first-quarter 2014 consolidated PRASM by approximately 1.5 percentage points.
First-quarter 2014 consolidated unit costs (CASM) increased 1.0 percent year-over-year. First-quarter 2014 consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 3.1 percent year-over-year on a consolidated capacity reduction of 0.3 percent.
"This quarter's financial performance is well below what we can and should achieve. We are taking the appropriate steps with our operations, network, service and product to deliver significantly better financial results," said Jeff Smisek, UAL's chairman, president and chief executive officer. "The entire United team is sharply focused on accomplishing the goals we have laid out for long-term financial success."
First-Quarter Revenue and Capacity

For the first quarter of 2014, total revenue was $8.7 billion, a decrease of 0.3 percent year-over-year. First-quarter consolidated passenger revenue decreased 2.3 percent to $7.4 billion, compared to the same period in 2013. Ancillary revenue per passenger in the first quarter increased 7.6 percent year-over-year to more than $21 per passenger. First-quarter cargo revenue decreased 7.9 percent versus the first quarter of 2013 to $209 million. Other revenue in the first quarter increased 18.0 percent year-over-year to $1.1 billion, in large part due to an agreement to sell jet fuel to a third party.

Consolidated revenue passenger miles and consolidated available seat miles each decreased 0.3 percent year-over-year for the first quarter, driven largely by adverse weather, resulting in a first-quarter consolidated load factor of 81.1 percent.

First-quarter 2014 consolidated PRASM and consolidated yield each decreased 2.0 percent compared to the first quarter of 2013.

 

[redflyer65]

One word..

Smisek.


It seems the only thing he knows how to do well is paint planes. Very sad.

 

[DUBLINFLYER]

You pay for what you get, bad service (CSA's and FA's don't care you're just a piece of meat to them), high ticket prices, huge change fess and not to mention baggage fees = less people flying lower revenues and losses
Keep going its a great business model for Jeff

 

[bluefin]

TOO MANY "$%^&*(#" RJ'S during the great melt down in Jan, 86% of the cancellations were express!!! Some brain child in Management said, "those were mostly, express cancellations, and we really dont controll what goes on over there!", WTF!!! better learn how to control, that schit!! and the solution? DUMP MORE FLYING TO COMPANIES THAT CANT HANDLE IT!!!! that's whats wrong with UAL!!! Anybody got the number for truck master?? I fell #3 coming!!

 

[CaptSeth]

The service issues I suspect are due to the very high percentage of operations that are conducted by fee-for-departure contract carriers. There is a severe crew shortage at those places, largely due to low wages and working conditions more than anything else, and the general quality of service is low due to a number of issues, not least of which is lack of operational expertise in all of the contract carrier's departments.

The solution is going to be expensive and time consuming. If they can't make money in good times, it does beg the question regarding the bad times.

 

[TMMT]

"This quarter's financial performance is well below what we can and should achieve. We are taking the appropriate steps with our operations, network, service and product to deliver significantly better financial results," said Jeff Smisek, UAL's chairman, president and chief executive officer. "The entire United team is sharply focused on accomplishing the goals we have laid out for long-term financial success."

Read that, management will demand pay cuts from everyone else.

 

[Grandpa +65]

No flame UAL guys. But this what he told me....Recently, Had a UAL J/S the who thinks "they are headed for BK again the way things are running over there". Good luck

 

[bluefin]

Has all doubt been removed yet?

 

[Freebrd]

To be fair many times the major cancels the connector flights during WX & run the mainline flights.

 

[tie1on]

Bankruptcy in 22 months. Mark my words

 

[wms]

Just like other mergers, afterward the leadership has to be replaced with visionaries.

 

[CesnaCaptn]

The service issues I suspect are due to the very high percentage of operations that are conducted by fee-for-departure contract carriers. There is a severe crew shortage at those places, largely due to low wages and working conditions more than anything else, and the general quality of service is low due to a number of issues, not least of which is lack of operational expertise in all of the contract carrier's departments.

The solution is going to be expensive and time consuming. If they can't make money in good times, it does beg the question regarding the bad times.

Don't all three legacies contract out a large percentage of their departures to f4d regionals? Why was UA hit so hard and not the other two? You don't see DAL blaming DCI for their results.

 

[catIIIc]

Our pilot cost on are on par with DAL' also so quit looking at pilot costs Jeff. DAL is also ahead of us in parking 50 seaters so that helps them also.

 

[Oakum_Boy]

Is this really so surprising.

 

[densoo]

Jury's Still Out

DAL/UAL at similar points after their merger dates.

2009Q1/2011Q1, -693/-136
2009Q2/2011Q2, -199/+577
2009Q3/2011Q3, +51/+773
2009Q4/2011Q4, -255/+109
2010Q1/2012Q1, -192/-286
2010Q2/2012Q2, +549/+545
2010Q3/2012Q3, +929/+520
2010Q4/2012Q4, +158/-190
2011Q1/2013Q1, -318/-325
2011Q2/2013Q2, +366/+520
2011Q3/2013Q3, +765/+590
2011Q4/2013Q4, +379/+298
2012Q1/2014Q1, -39/-489

TOTALS, +$1501M/+$1916M

UAL is up 27% on DAL 3 1/2 years into their respective mergers.

 

[Nevets]

TOO MANY "$%^&*(#" RJ'S during the great melt down in Jan, 86% of the cancellations were express!!! Some brain child in Management said, "those were mostly, express cancellations, and we really dont controll what goes on over there!", WTF!!! better learn how to control, that schit!! and the solution? DUMP MORE FLYING TO COMPANIES THAT CANT HANDLE IT!!!! that's whats wrong with UAL!!! Anybody got the number for truck master?? I fell #3 coming!!

If that's what they told you, they lied to you again. I can't believe that some believed it.

Here is how it works. UAL pays the UAX carrier only if the flight is completed. The UAX carrier will operate that flight 18 hours late if that's the only way to get it completed. The UAX carrier wants to complete the flight! Otherwise they get no revenue. It's UAL who chooses which flights to cancel. It's UAL's who chooses how many UAX flights get cancelled. The only time a UAX carrier will cancel is if there are no crews or a mechanical that would take more than a day to complete.

Personally, I wished mainline pilots would scope back all their branded flying.

 

[Indy319FA]

You pay for what you get, bad service (CSA's and FA's don't care you're just a piece of meat to them), high ticket prices, huge change fess and not to mention baggage fees = less people flying lower revenues and losses
Keep going its a great business model for Jeff

Not to mention outsourcing all their outstation operations to Envoy......

 

[brokedash]

They can make some simple changes to help. Improve BoB offerings, let pax know what features a plane will have, adjust change fees and ticket prices to better compete. Expedite 50 seater phase out and start looking for something to bridge the gap between 76 seats and 125 seats. Compete smartly IE: Don't fly 13 times a day between EWR-SFO; offer competing flight times with AC and service VA can't match. Get rid of Smisek, he is the face of too many bad mistakes.

 

[trip]

Mainline has 99% operational control over the express side. The who, what, when, and how often is all controlled by mainline.
Many longtime outstation ground handlers have been fired and replaced by lowest bidder handling companies (not airline). Lowest bidder takes over and with little to no training and even less care, cycle continues.
U. Express is handled like an unwanted stepchild and blamed for all the failures.
D. Connection is viewed as an important piece of the airline and treated as such, a much different culture.
Just some observations from someone who has seen both sides, been this way for years and not likely to change anytime soon.

 

[SSDD]

Here's one I'll never understand: American Eagle/Envoy does a lot of the ground handling for United! Really?

Would McDonalds let Taco Bell handle their product? Would Coke let Pepsy?

Crazy!