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AirTran Net Income of $134.7 Million for 2009
Well thats a no brainer!! When you have 737 FO's making 70 bucks an hour and CA's 130, how could you NOT be earning a significant profit?
.175 cents/asm times 24 billion ASMs comes out to a pilot cost increase of around $42 million per year. Company isn't going to increase their costs by $42 million per year and give us the transparency we desire without a serious threat of work stoppage.Give ALL pilots a 25% raise and our portion goes up .175 cents/asm. The total cost goes to 9.475 cents/asm.
Airtran's total labor costs are a little under under $500 million per year and the pilots get a little over $200 million, so you can figure between 40-45% of Airtran's total labor costs are due to the pilots.Max, attributing half of the wages to the pilots was a little generous, I would say more like 1/4 to 1/3. And with an ave. pay raise of 20% between Ca and Fo's, I come out with around 30 mil. The point I was trying to make is that low pilot wages was not the reason AAI made a profit last year.
I am not sure where you get that operating profit of $46 million.BTW, looking at the projections (if they are correct) for Q1, we should make an operating profit around $ 46 mil.
Airtran's total labor costs are a little under under $500 million per year and the pilots get a little over $200 million, so you can figure between 40-45% of Airtran's total labor costs are due to the pilots.
I am not sure where you get that operating profit of $46 million.
Using the Q1 2010 projections from last weeks 8-K:
Capacity = Up 7-8%
TRASM = Up 2.5-3.5%
Nonfuel CASM = Up 2.5-3%
All in fuel cost = $2.25-2.30 gal
I calculated a breakeven at the operating level which results in a net loss of around $20 million (the average estimate of 10 Wall St analysts for us is a loss of 8 cents per share according to Yahoo Finance).
According to the projections, our revenue will be up $60 million year over year due to 7-8% capacity increase and 2.5-3.5% TRASM increase. But our fuel cost are going up $70 million (due to capacity growth and price increase from $1.62 last year to $2.25-2.30 this year). Also, our nonfuel costs are going up $37 million (due to 2.5-3% nonfuel CASM increase and capacity growth). The $107 million in increased costs overrides our $60 million revenue increase and takes us from an operating profit of $47 million in Q1 2009 to a breakeven Q1 2010.
$1.62/gallon was our economic all-in fuel cost for Q1 2009 per gallon. $1.87 was the price for the entire year. When figuring fuel costs for Q1 2010, take the gallons burned for Q1 2009 times 1.075 (7.5% increase in capacity increases gallons burned by roughly the same percent) and then multiply by the estimated Q1 2010 all-in fuel price. As you can see, we go from roughly $135 million fuel bill in Q1 2009 to a fuel bill of roughly $205 million in Q1 2010.You're right, I did the gas wrong. Well, I'm winging here in the MKE hotel using the the AirTran filing. I show the ave. gas price at 1.87 for 2009, where did you see $1.62? At 2.27 projected, that is around a 20% increase over 1.87. I erred when converting that into fuel casm. I figured fuel casm 3.06 cents and I should have around 3.5.
That is why we are trying to develope markets where we are the largest player (ie more than 75% of the marketshare). Alot of our newest Florida nonstops are markets where we are the only player nonstop giving us good pricing power.Regardless, it's been the same contract for 9 years, pay us the frikin' money and RAISE THE TICKET PRICES a couple of bucks. I'm tired of paying for AAI's fuel.
but if you think that profits are strictly driven by pilot pay, you need to look at some 10K filings and learn how to read them.