ASA has highest profit margin....

[Sinca3]

From ATW online:

US carriers report first March quarter operating profit since 2000

Wednesday June 27, 2007
The US Bureau of Transportation Statistics reported that a group of 21 US passenger airlines, consisting of the seven largest network, low-cost and regional carriers based on operating revenue, reported a collective system operating profit margin of 2.7% for the 2007 first quarter, the group's first profitable first quarter since 2000 and its fourth consecutive following years of heavy losses.
The profit margin improved from a loss margin of 1.3% in the year-ago quarter. The seven regionals reported an operating profit margin of 6.3%, the network carriers 2.5% and the LCCs 2.3%. The network group's margin was up 5.8 points over a 3.3% loss margin in the year-ago quarter as the seven carriers reported a combined operating profit of $559 million, reversed from a $711 million loss in the 2006 first period.
The top operating profit margins were reported by regional carriers Atlantic Southeast Airlines (12.9%), Pinnacle Airlines (9%) and American Eagle Airlines (11.2%). Northwest Airlines (7.2%) reported the top margin among network carriers and Spirit Airlines (7%) led the LCCs. Only six of the 21 carriers reported loss margins: ATA Airlines, Mesa Airlines, Alaska Airlines, United Airlines, Frontier Airlines and JetBlue Airways.
The network and low-cost groups reported higher unit revenue in the quarter compared to the year-ago period, with network airlines registering the biggest gain at 0.4 cents per ASM. Regionals reported the highest unit revenue but the first-quarter result of 14.9 cents fell 0.5 cents from last year. Network carriers' unit revenue was 13.5 cents, followed by the LCCs at 9.6 cents.
Regionals reported the highest unit cost during the quarter at 14 cents per ASM, followed by network carriers at 13.1 cents and LCCs at 9.4 cents. Only the network group reported lower unit costs in the 2007 first quarter compared to the year-ago quarter, a decrease of 0.4 cents.
BTS also reported that US airlines carried 177.6 million scheduled domestic and international passengers in the quarter, a 1.6% increase over 174.8 million in the year-ago period, comprising 1.2% more domestic and 4.9% more international passengers.

by Aaron Karp

 

[Tarzan]

I wonder if this has anything to do with the supposed "Company coming to the table with offers" thing. The release was coming and there was nothing they could do about it. I remember Uncle Hulas trying to sue or something like that to keep the numbers from being released because it would hurt him in contract talks.

Methinks Uncle Jerry bought hisself a cash cow.

That 13% is incredible considering that most oil companies only make 6 cents on every dollar while ASA makes over twice that.

 

[Jmoney]

Let me hold a Dolla.....

Yep, these knuckes have been giving us the old rop-a-dope for the last 5 years. I don't know whether to laught or cry, or even who to blame anymore. It is obvious they have plenty of cash to settle this mess with, but as we all know, greed knows no limits.
-Whatever...

 

[scott hall]

Don't believe it. This report does not take into account many of our expenses. They claim 12.9% ? I'd say its closer to 12.6% . Maybe if our pilots weren't so expensive we we could break the 13.0% barrier.

 

[pgcfii2002]

Somehow I see this turning into a PFT arguement......

 

[Tarzan]

Somehow I see this turning into a PFT arguement......

Weak attempt at a thread hijack, however.......... Mesa still sucks and Go Jet still blows.

 

[WWEfan]

How TF is Mesa losing money?

 

[yournextFO]

No doubt a memo will soon be disemminated to the pilots pointing out that the 12.9% number does not factor in aircraft leases. Oh wait, they tried that last time...

 

[Tomct]

Well folks, if this DOES NOT P!SS you OFF...then you might as well quit! It is freakin TIME to get our money!!!! These greedy Sonsab!tches are going to PAY! Anyone that says "...we should just settle..." better take a HARD LOOK at what ya'll have been saying! No More of this crap! The company can't hide anymore. NOW is the time! CNC...MAKE IT HAPPEN!!!:angryfire

 

[JoeMerchant]

1. What would our profit margin be if we got everything we are asking for?

2. The profit margin of ASA was almost 17% in 1994. Today it is less than 5% - note I am talking profit margin, not operating profit margin.

3. The profit margin of ASA will be negative if we don't "win" the flying. The actual flying we do is a "loss leader". The flying itself is not profitable. In fact, most domestic legacy flying today is not profitable. The only value it has is that of feed, specifically international feed.....

 

[Gr82Aviate]

1. What would our profit margin be if we got everything we are asking for?

2. The profit margin of ASA was almost 17% in 1994. Today it is less than 5% - note I am talking profit margin, not operating profit margin.

3. The profit margin of ASA will be negative if we don't "win" the flying. The actual flying we do is a "loss leader". The flying itself is not profitable. In fact, most domestic legacy flying today is not profitable. The only value it has is that of feed, specifically international feed.....

How long have you been in management?

 

[JoeMerchant]

How long have you been in management?

Never have been..... Care to answer the questions or are you content to just take cheap shots while ignoring the issues?

 

[Gr82Aviate]

Never have been..... Care to answer the questions or are you content to just take cheap shots while ignoring the issues?

I guess I'm just a little shocked that I seem to support your fellow crewmembers attempt to better themselves more than you do...Having worked for the company that bought you(ASA) for over 2 decades I can honestly say they really don't need you to worry about their profit margins! JA's pay has gone up almost 400% in the last decade...how does that compare to your situation? I can tell you that on our side of the fence we haven't had a COLA since our hire date the year before 9/11, and we are locked in for the next 4 years with a total 1% increase(this works out to 1% for 10 1/2 years)! I hope you don't think we cut into their profit margin too much by going backwards against inflation year after year?? Maybe you want to attain the same fabulous deal so as not to break the bank at Skyw Inc.?????

 

[JoeMerchant]

I guess I'm just a little shocked that I seem to support your fellow crewmembers attempt to better themselves more than you do...Having worked for the company that bought you(ASA) for over 2 decades I can honestly say they really don't need you to worry about their profit margins! JA's pay has gone up almost 400% in the last decade...how does that compare to your situation? I can tell you that on our side of the fence we haven't had a COLA since our hire date the year before 9/11, and we are locked in for the next 4 years with a total 1% increase(this works out to 1% for 10 1/2 years)! I hope you don't think we cut into their profit margin too much by going backwards against inflation year after year?? Maybe you want to attain the same fabulous deal so as not to break the bank at Skyw Inc.?????

My pay has gone up almost 600% since I started at ASA... but that's not the point....

ASA and Skywest pilots are getting paid more than many in terms of 700/900 pay and that is the point. Profit margins are shrinking, and that is the point. If ASA ALPA gets everything they are asking for, the profit margin will be negative, and that is the point. The ASA profit margin is less than 1/3rd what it was in 1994 and that is the point....

I understand your frustration, and I share it..... however we have been dealt a $hitty hand.... partially by ALPA and it's allowance of the portfolio whipsaw to continue..... We have to deal with it until such time as ALPA actually decides to eliminate the competition within a brand....

Again, would you like to address the issues I raised?

By the way, it easy for you to lecture me about support while you fly 900s that were originally ordered by ASA. Easy for you to say while you are on the winning side of the whipsaw.... The view is a little different from this side of the fence.... even with my worthless ALPA pin......

 

[Gr82Aviate]

My pay has gone up almost 600% since I started at ASA... but that's not the point....

ASA and Skywest pilots are getting paid more than many in terms of 700/900 pay and that is the point. Profit margins are shrinking, and that is the point. If ASA ALPA gets everything they are asking for, the profit margin will be negative, and that is the point. The ASA profit margin is less than 1/3rd what it was in 1994 and that is the point....

I understand your frustration, and I share it..... however we have been dealt a $hitty hand.... partially by ALPA and it's allowance of the portfolio whipsaw to continue..... We have to deal with it until such time as ALPA actually decides to eliminate the competition within a brand....

Again, would you like to address the issues I raised?

By the way, it easy for you to lecture me about support while you fly 900s that were originally ordered by ASA. Easy for you to say while you are on the winning side of the whipsaw.... The view is a little different from this side of the fence.... even with my worthless ALPA pin......

I'm not sure exactly which "issues" you want me to address, but if you're referring to going negative on the profit margin? I doubt ALPA is going for an increase for you guys that would cost the company more than the $140,000,000+ in annual profit made at Skyw Inc.

As for your attempted slam on my flying the 900, you might want to get your facts before you start false accusations... Haven't ever flown it, not even one time!! Feel better now??

As for your whipsaw accusation, you seem to always want to place the blame on your fellow pilots, instead of on management where the real blame lies!!! I don't like the "whipsaw" any more than you, and would love to work ALONGSIDE my fellow pilots to try and make the profession better for all of us...not try to insult and put down those in this profession who would like to see all of us stand together to stop the slide we have all seen!

 

[JoeMerchant]

I'm not sure exactly which "issues" you want me to address, but if you're referring to going negative on the profit margin? I doubt ALPA is going for an increase for you guys that would cost the company more than the $140,000,000+ in annual profit made at Skyw Inc.

I would guess that if ALPA had gotten everything it wanted late last year, the total cost to ASA would be somewhere in the neighborhood of 70 Million the first year, which is about what ASA makes. That isn't going to happen.... We have since dropped our big increase in 700 pay, and our Bfund retirement, so the current proposal is probably only about 50 Million first year..... again, not going to happen...

As for your attempted slam on my flying the 900, you might want to get your facts before you start false accusations... Haven't ever flown it, not even one time!! Feel better now??

Don't really give a d@mn if you have flown it... the fact is, the ASA 900s are now being flown in ATL by Skywest pilots while you lecture me about what I should do.... Easy for you to say in the cheap seats..... maybe we should just undercut your 900 rates and take the airplanes back....

As for your whipsaw accusation, you seem to always want to place the blame on your fellow pilots, instead of on management where the real blame lies!!! I don't like the "whipsaw" any more than you, and would love to work ALONGSIDE my fellow pilots to try and make the profession better for all of us...not try to insult and put down those in this profession who would like to see all of us stand together to stop the slide we have all seen!

Quite the contrary my Skywest friend.... the blame doesn't rest on my fellow pilots... it rests on the union that I am forced to pay dues to..... They created the whipsaw and they are not doing anything to end it..... Sounds great to have us all "stand together", but that isn't how ALPA works.... Have you noticed that the USAir MEC is suing the AWA MEC.... there is no "standing together" in ALPA.... it is every man for themself........

 

[Gr82Aviate]

I would guess that if ALPA had gotten everything it wanted late last year, the total cost to ASA would be somewhere in the neighborhood of 70 Million the first year, which is about what ASA makes. That isn't going to happen.... We have since dropped our big increase in 700 pay, and our Bfund retirement, so the current proposal is probably only about 50 Million first year..... again, not going to happen...



Don't really give a d@mn if you have flown it... the fact is, the ASA 900s are now being flown in ATL by Skywest pilots while you lecture me about what I should do.... Easy for you to say in the cheap seats..... maybe we should just undercut your 900 rates and take the airplanes back....



Quite the contrary my Skywest friend.... the blame doesn't rest on my fellow pilots... it rests on the union that I am forced to pay dues to..... They created the whipsaw and they are not doing anything to end it..... Sounds great to have us all "stand together", but that isn't how ALPA works.... Have you noticed that the USAir MEC is suing the AWA MEC.... there is no "standing together" in ALPA.... it is every man for themself........

Okay, maybe I wasn't clear? I have not, and will not fly the 900 because of the rates that were shoved down our throat by SAPA...I voted NO to the crappy override!!!!! Not only that, but I had nothing to do with the 900's coming here instead of going to ASA.
You really seem to prefer blaming pilots and fighting amongst one another instead of placing the blame where it really belongs with management and trying to show a unified front to stop the slide?!!!!
I have NO desire to steal "your 900's or flying", I don't need the quick upgrade, or guys added below me to get off reserve...and even if that were the case I really do believe in working together to improve the profession!
Feel free to let me know what I could have done to stop JA from transferring your 900's???????

 

[JoeMerchant]

Okay, maybe I wasn't clear? I have not, and will not fly the 900 because of the rates that were shoved down our throat by SAPA...I voted NO to the crappy override!!!!! Not only that, but I had nothing to do with the 900's coming here instead of going to ASA.
You really seem to prefer blaming pilots and fighting amongst one another instead of placing the blame where it really belongs with management and trying to show a unified front to stop the slide?!!!!
I have NO desire to steal "your 900's or flying", I don't need the quick upgrade, or guys added below me to get off reserve...and even if that were the case I really do believe in working together to improve the profession!
Feel free to let me know what I could have done to stop JA from transferring your 900's???????

You couldn't stop JA from transferring our 900s, and neither can ALPA....

I'm all for a "unified front", but ALPA isn't it.... Have you seen what has happened at the USAir/United/Delta properties? There has been no "unified front" with or without ALPA.... What happened to ALG, PDT, CCAir, CMR, ACA, and AirWisc?

You don't want any of the blame, but you want to blame me for trying to protect what I have.... It's a two way street, either you accept some of the blame, or don't b!tch when I do what I think is in my best interest....

I believe that if ALPA continues with it's demands, JA will continue to shift assets to Skywest, and I do not believe that is in my best interest.... Nothing more, nothing less.....

Feel free to let me know what I should do to protect my job.....

 

[Beantown]

"How TF is Mesa losing money?"


This one is easy. There contract is up next quarter. Mesa has made money every quarter since the contract was signed (2003) until last month. My guess is you will see Mesa lose money for then next yr or two as they fight over this contract. Bean

 

[Gr82Aviate]

I would guess that if ALPA had gotten everything it wanted late last year, the total cost to ASA would be somewhere in the neighborhood of 70 Million the first year, which is about what ASA makes. That isn't going to happen.... We have since dropped our big increase in 700 pay, and our Bfund retirement, so the current proposal is probably only about 50 Million first year..... again, not going to happen...



Don't really give a d@mn if you have flown it... the fact is, the ASA 900s are now being flown in ATL by Skywest pilots while you lecture me about what I should do.... Easy for you to say in the cheap seats..... maybe we should just undercut your 900 rates and take the airplanes back....



Quite the contrary my Skywest friend.... the blame doesn't rest on my fellow pilots... it rests on the union that I am forced to pay dues to..... They created the whipsaw and they are not doing anything to end it..... Sounds great to have us all "stand together", but that isn't how ALPA works.... Have you noticed that the USAir MEC is suing the AWA MEC.... there is no "standing together" in ALPA.... it is every man for themself........

I'm not sure how you came up with a total cost of $70 million? I think that amount would mean over $41,000 per pilot at ASA...don't see where you got that?!