AWA beats earnings estimates by 50%

[boscenter]

While still not a profit, these numbers look better than what most of the other airlines have put on the table.

Considering how right after 9/11 AWA was thought of as "one of the first to buckle," these guys have done a great job of turning around!

Even w/o the ATSB loan, the numbers still look good...

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PHOENIX (CBS.MW) -- America West beat analyst estimates and actually narrowed its loss in the second quarter, making it something of a standout among the money-losing major airlines that have reported results.

As a result, shares rose 2 percent to $2.43 in morning trading while other airlines fell. See airline sector story.

Before the bell, America West Holdings (AWA: news, chart, profile) reported a second-quarter loss of $8.5 million, or 25 cents per share. That is well down from its losses of $42.5 million and $1.26 in the year ago period and less than half the consensus estimate of analysts polled by Thomson Financial/First Call.

While those results include some taxpayer help, the company's loss was only $9.9 million and 29 cents when the bailout from Uncle Sam is taken out of the picture.

America West also produced a nominal net profit in June and a "modest" operating profit for the quarter, the company said.

According to CEO W. Douglas Parker, "while America West's second quarter net loss reflects the continued economic challenges facing the airline industry, we are encouraged to be the only major airline to report a year-over-year improvement in earnings."

Parker said the relatively strong performance was driven by a new fare system and cost reductions imposed during a recent restructuring.

Still, operating revenues for the quarter fell 7.3 percent, to $544 million, while available seat miles declined 0.7 percent. Revenue passenger miles were down 0.3 percent from the second quarter of 2001, but passenger load factor was a record 75.8 percent.

Passenger revenue per available seat mile fell 6.7 percent, less than most of its peers.

Southwest (LUV: news, chart, profile) has been the only major carrier thus far to report a second quarter profit.

 

[Mr Freeze]

Good for them. Thats great. Hopefully this is the beginning of a trend that things are getting better in are industry.

Any ideas on when they will start hiring.

 

[Andy Neill]

According to CEO W. Douglas Parker, "while America West's second quarter net loss reflects the continued economic challenges facing the airline industry, we are encouraged to be the only major airline to report a year-over-year improvement in earnings."

I don't know. I'd rather be in Southwest's shoes having PROFITS drop from $175.6 million this quarter last year to $102.3 million this quarter rather than AW's LOSS reduction from $42.5 million to only $8.5 million this year. Call me old fashioned. I think profits (even diminished profits) are good things.

 

[Dash Jockey]

I'm glad to see AWA coming back from the edge (again).
Rumor has it that now that they have recalled all thier pilots they might be hiring as early as OCT.
But keep in mind that that is only a rumor and we all know what those are like.

 

[boscenter]

I don't know. I'd rather be in Southwest's shoes having PROFITS drop from $175.6 million this quarter last year to $102.3 million this quarter rather than AW's LOSS reduction from $42.5 million to only $8.5 million this year. Call me old fashioned. I think profits (even diminished profits) are good things.

I agree! That's why I said "most," as WN is definitely an exception. "Most" was referring to the carriers whose losses widened from last year (i.e. just about all of them).

 

[Andy Neill]

boscenter,

It was not your remark that I was discounting. It was Mr. Parker's.