Figures don't lie; but sometimes they don't make a lot of sense.

[Groucho]

US Airways reported third quarter results today.
US East made $584million. US West lost $83million.
To my way of thinking that's a profit $501million.

But according to the accountants there were fuel hedging write offs, merger related expenses, etc. etc. etc, so US really posted a loss of $88 million.

Go figure.

 

[paulsalem]

I took accounting and statistics in college, they are not math. It is a black art, ranks right up there with alchemy.

 

[PA-22]

US Airways reported third quarter results today.
US East made $584million. US West lost $83million.
To my way of thinking that's a profit $501million.

But according to the accountants there were fuel hedging write offs, merger related expenses, etc. etc. etc, so US really posted a loss of $88 million.

Go figure.

They don't make a lot of sense when you take them out of context. Here is the press release, it might help you understand.

Press ReleaseSource: US Airways Group, Inc.

US Airways Group, Inc. Reports Third Quarter Results
Thursday October 26, 8:00 am ET Highlights of the New US Airways Group, Inc. Third Quarter 2006 results: * The Company reported a third quarter 2006 net loss of $78 million or $0.88 per diluted share, which includes special items of $179 million. * Excluding special items, the Company reported a third quarter 2006 net profit of $101 million or $1.09 per diluted share, which compares to First Call's mean estimate of $1.01. * The Company accrued $12 million, or 10 percent of its third quarter 2006 pretax income excluding special items, for its annual employee profit sharing program. This brings the year-to-date 2006 employee profit sharing program accrual to $48 million. * The Company had $3.0 billion in total cash and investments, of which $2.3 billion was unrestricted, on Sept. 30, 2006.

TEMPE, Ariz., Oct. 26 /PRNewswire-FirstCall/ -- The new US Airways Group, Inc. (NYSE: LCC - News) today reported a third quarter 2006 net loss of $78 million or $0.88 per diluted share, which compares to a net loss of $99 million or $5.74 per diluted share for the same period last year. Excluding special items, the Company reported a third quarter 2006 net profit of $101 million or $1.09 per diluted share. First Call's mean estimate for US Airways was $1.01. See the accompanying notes in the Financial Tables section of this press release for a reconciliation of Generally Accepted Accounting Principles (GAAP) financial information to non-GAAP financial information.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050223/LAW097LOGO)
Results for the new US Airways Group's third quarter 2006 are being compared to America West's standalone results for third quarter 2005 due to the former US Airways Group and America West Holdings Corporation merger on Sept. 27, 2005. Although the merger was structured so that America West became a wholly owned subsidiary of the new US Airways Group, America West was treated as the acquiring company for accounting purposes under Statement of Financial Accounting Standards No. 141, "Business Combinations." This is the last quarter of new US Airways Group comparison to America West's standalone results as the Company's merger between the former US Airways Group and former America West closed on Sept. 27, 2005.

On a standalone basis, America West reported a net profit excluding special items of $3 million for the third quarter 2006 as compared to a net loss of $19 million for the same period last year, excluding special items. Including special items, America West posted a loss of $100 million for the third quarter 2006 as compared to a loss of $83 million during the same period in 2005.

US Airways reported a net profit excluding special items of $109 million on a standalone basis for the third quarter 2006 as compared to a net loss of $80 million, excluding special items, for the same period last year. Including special items, US Airways posted a profit of $38 million for the third quarter 2006 as compared to a profit of $584 million during the same period in 2005.

US Airways Group Chairman and CEO Doug Parker stated, "We are pleased to report our third consecutive profitable quarter excluding special items, especially given the new security regulations put into place in August, which we estimate negatively impacted revenue by $30 million to $40 million during August and September. Those security directives also caused a spike in checked baggage and our team worked particularly hard to take care of our customers.
"We are one year into our merger and these financial results are further evidence of its success. We still have much work to do, but our employees are doing a great job and we are confident that we are on the right course. We are particularly pleased to have accrued another $12 million for our employee profit sharing program, bringing our year-to-date accrual to $48 million.
"Looking forward, given our current fuel and revenue forecasts for the remainder of the year, we anticipate reporting a profit in the seasonally difficult fourth quarter."
Revenue and Cost Comparisons
In spite of restrictions to carry-on luggage and subsequent declines in short haul business traffic as a result, the revenue environment remained strong during the third quarter 2006. For the America West standalone network, total (mainline and express) revenue per available seat mile (RASM) increased 13.1 percent during the third quarter 2006 to 10.51 cents. For the US Airways standalone network, total RASM increased 15.8 percent to 13.68 cents.
On a standalone basis, America West's mainline operating costs per available seat mile (CASM) increased 17.4 percent from 9.78 cents for the third quarter of 2005 to 11.47 cents for the third quarter 2006, largely due to special items and an 18.4 percent increase in the price of fuel in the same period from $1.92 to $2.27 per gallon. Excluding fuel and special items, America West's mainline CASM increased 3.9 percent from 6.48 cents for the third quarter 2005 to 6.73 cents for the third quarter 2006 on a 3.9 percent decrease in available seat miles (ASMs).
US Airways' standalone mainline CASM for the third quarter 2006 increased 6.1 percent from 10.76 cents for the third quarter 2005 to 11.42 cents also largely due to higher fuel prices, which increased 20.4 percent versus the same period last year. On the US Airways' standalone network, mainline CASM excluding fuel and special items decreased 0.4 percent in the same period to 7.63 cents for the third quarter 2006 on a 4.8 percent decrease in ASMs.
The cost of fuel remained high during the third quarter. The Company paid $179 million more for mainline and express combined fuel in this period than it would have paid had fuel prices remained at third quarter 2005 levels. With the recent decreases in the cost of fuel, the Company has reduced its projected fourth quarter 2006 fuel cost by approximately $90 million. The Company now anticipates paying $2.00 to $2.05 per gallon for fuel including taxes in the fourth quarter 2006, which includes the Company's mainline hedge position of approximately 46 percent.
During the third quarter 2006, the recent declines in the cost of fuel resulted in an $88 million non-cash unrealized loss to reduce the book value of certain outstanding fuel hedge contracts as required by Statement of Financial Accounting Standard 133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS 133). On a year-to-date basis, the Company has recognized a net unrealized loss of $44 million on its fuel hedging contracts. Overall the Company's fuel hedging program has reduced fuel expense by more than $109 million since 2003. US Airways has continued its strategy of using costless collars to dampen the impact of volatile fuel prices.
Liquidity
As of Sept. 30, 2006, the Company had $3.0 billion in total cash and investments, of which $2.3 billion was unrestricted.
Third Quarter 2006 Special Items
The Company recognized $179 million of special items during its third quarter 2006, which included an $88 million non-cash charge to reduce the book value of certain outstanding fuel hedge contracts, $27 million of merger related transition expenses and a $5 million payment in connection with an inducement to the note holders to convert a portion of the Company's seven percent Senior Convertible Notes to common stock. In addition, the Company used $59 million of net operating losses acquired from US Airways during the 2006 third quarter, which was recognized as a reduction in goodwill rather than a reduction in tax expense. As a result, the Company has a $59 million non-cash expense for income taxes for the quarter. See the accompanying notes in the Financial Tables section of this press release for a reconciliation of Generally Accepted Accounting Principles (GAAP) financial information to non-GAAP financial information.

 

[Lear70]

"Special items", otherwise known as one-time writeoffs, otherwise known as legal embezzlement, tax evasion, and management bonuses.