Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

LCC 3RD QTR Loss

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web
"I'd worry about your own airline there chicken little/Continental boy."

HPpilot, are you joking? Maybe I'm missing something but all I see is an article. "chicken little/Continental boy" didn't even write anything.

I wouldn't let this "loss" stress you out too bad. If an airline didn't lose money in the 3rd quarter then that's pretty impressive.
 
Thanks for the response in my place. I would have retorted but was under the bed as the sky was falling.
 
Don't worry about me being stressed, my wife(me) inherited a 1/4 of a bank(s). Like I said before worry about yourself.
 
HAL said:
Hmmm. Oil closed at $58.93 a barrel, which I believe is below $60. The business plan never called for an airline to be liquidated, only that they expected some loss of capacity. The downsizing in domestic capacity between Northwest and Delta certainly fits that requirement. Yields are up at lcc, the plan is working. They are well on their way to being profitable.

HAL

I'll concede the barrel of oil. I'm not sure your NW and DL example is what Mr. Parker had in mind. I could've sworn the presser said "Loss of capacity due to airline liquidation" of some type. I could be wrong. You'd probably know better than me since you work there.
 
This is why the stock keeps going up....

US Air eyes a turnaround
Stock jumps after parent of America West cites outlook
By August Cole, MarketWatch

Last Update: 5:59 PM ET Nov. 9, 2005 SAN FRANCISCO (MarketWatch) -- Investors sent shares of the parent of US Airways and America West 6.4% higher Wednesday after the recently merged company issued an upbeat growth outlook for 2006.
Now called US Airways Group, the revamped company said that it expects a higher profit next year, not counting one-time charges related to the acquisition the bankrupt US Airways. In late September, Tempe, Ariz.-based America West Holdings closed its acquisition of the US Airways and used the larger airline's name to identify the merged company.

For the third-quarter report, which all but excludes results from the old standalone US Airways, the company reported a loss of $87 million, or $5.04 a share, vs. last year's loss of $29 million or $1.92 a share.
With special items excluded, US Airways Group would have lost $23 million, or $1.33 a share, narrower than last year's loss of $46 million, or $3.06 a share.
Revenue rose to $926 million, up 36%.
For accounting purposes, the company said results for the third quarter reflect the combined operations of the two airlines for only the four-day that followed the completion of their merger. The other 88 days only show the performance of the America West side of the business.
Executives said the company expects to be profitable in 2006, after stripping out one-time costs related the acquisition.
In an interview, Chairman Doug Parker said that investors focused on the performance of each airline but also how the combination of the company's is going and how the results look for next year.
"The results for both carriers were dramatically improved over last year despite rising fuel prices...More importantly, I think what people are keying in on is how the merger is going so far," Parker said.
US Airways' stock closed up $1.87 to $31.30, a high for the new stock that began trading when the merger closed in September. Fuel costs rose 35% in the quarter, averaging $1.92 a gallon.
Looking only at the America West results, revenue totaled $846 million, up 25% from last year. The division posted a loss of $71 million, wider than the $28 million last year.
The standalone US Airways airline's revenue in the quarter totaled $1.88 billion, up 5.3%.
It posted a profit of $584 million, including a $664 million gain from the company's restructuring. Last year, a loss of $214 million was reported.
Cash and investments stood at $2.6 billion as of Oct. 31, the company said.
On a conference call with analysts, Parker said that management's sure the company can make the $600 million in "synergies," which includes cost savings and revenue gains.
"Based on this and consistent with the projections we disclosed during the merger process, we continue to believe the new US Airways will be profitable in 2006 excluding one-time merger-related transaction costs," Parker said.
Capacity cutbacks by rivals are also helping ease some of the pressure on revenue, executives said.
Though the financial results for US Airways include both companies' operations, the two carriers still have separate operating certificates. More work is still to come blending the two companies' operations, such as their Web sites.
Executives said during the conference call that it will be some time before the US Airways brand has totally eclipsed that of America West. Flights will be announced as US Airways during the first quarter of next year but a single reservation system, which will mark the full integration, isn't expected until early in 2007.
The rest of the airline sector traded higher with the Amex Airline Index up 1.9% to 48.81 points. Merrill Lynch raised its 12-month price target to $36 a share from $28 and held its buy rating on US Airways shares.
"The upside potential of the shares could be significant," wrote Merrill's Michael Linenberg. "However, one can't lose sight of the fact that US Airways is still in the process of merging two airlines."

August Cole is an editor for MarketWatch in San Francisco.
 
"Don't worry about me being stressed, my wife(me) inherited a 1/4 of a bank(s). Like I said before worry about yourself."

If that was true you wouldn't be so concerned about a simple article.

If it really is true then you look like a total idiot and have absolutely zero class.
 
BeCareful! said:
And a big East Coast welcome to our new brothers in the West.

I like how the board just voted four top execs a sizable raise the day before this was announced.


Charlotte Observer Story

4 top US Airways executives get pay raises

AIRLINES

US Airways' board of directors approved raises for four top executives, the airline said in a securities filing Tuesday. Chief Executive Doug Parker's base salary will remain at $550,000, the airline said. It set other base pay as follows:• Executive Vice President Jeffrey McClelland will make $425,000, up from the $400,000 he made in 2004.

• Executive Vice President Scott Kirby will make $425,000, up from $380,000 last year.

• Chief Financial Officer Derek Kerr will make $300,000, up from $262,000 last year.

• Executive Vice President Al Crellin will make $400,000, up from $347,000 last year.


So, in any event, welcome to US Airways, where executive compensation is second only to the concessions demanded of the front line employees (year after year after year.)





.....and let the "East Coast" whining begin....:rolleyes:


PHXFLYR:cool:
 
he revamped company said that it expects a higher profit next year, not counting one-time charges related to the acquisition the bankrupt US Airways.

Does that mean they only expect to lose tens of millions, as opposed to hundreds of millions next year?

Is it just me or does every airline have "one-time" writeoffs every quarter?

~wheelsup
 
FurloughedTwice said:
"Don't worry about me being stressed, my wife(me) inherited a 1/4 of a bank(s). Like I said before worry about yourself."

If that was true you wouldn't be so concerned about a simple article.

If it really is true then you look like a total idiot and have absolutely zero class.

Nice try their ex 737. MMMM 2 posts for furloughedtwice. Next time have the balls to use you're normal call sign instead of creating a new one. HHAHAHHA what a loser.
 

Latest resources

Back
Top