SKYW - XJT earnings

[centralpilot]

I listened to the call. He actually said that Expressjet "made a small profit" during the quarter.

No, that isn't what he said. He said that XJT made a small operational profit, which isn't the same as, you know, actual profit.

 

[fastback]

Correction, SkyWest Airlines in making a ton of money, and according to the conference call, ExpressJet is losing money like a stuck pig.

I subtracted the OO "Airlines" revenue and income from the Inc. totals using the info posted on SWOL. I got revenues of 382.2 mil, net income of 7.65 mil, and a net margin of 2.00%. This is for Inc. minus Skywest Airlines, ie. almost completely Expressjet Airlines. Please help me reconcile my numbers with your assertion that "ExpressJet is losing money like a stuck pig." Thank you.

 

[pilotnbr1]

The Skywest Airlines contracts with mainline partners is structured differently from the agreements of ExpressJet. Each has different financial incentives and penalties.

To compare one group to another by strictly looking at profits is a huge uninformed generalization...

Skywest Airlines is reaping the rewards of great contracts they negotiated with their partners. For the previous quarter their pro-rate flying did particularly well. Thus their management can afford to properly compensate their pilot group, adequately staff, hire talented leadership, and otherwise financially motivate their work force.

The Expressjet CRJ side lost much of their profit margin with the last rate reset and will have another rate reset coming when they once again have to provide the second lowest Delta lift. I cannot speak for the ERJ, but I do know the ERJ pilots, FAs, and mechanics have superior contracts, which are being targeted by management as low hanging fruit. Both sides of the Expressjet operation are hitched to the same operational and management wagon. All sides of the Expressjet operation are going to continue to be squeezed for profitability.

In my opinion the Expressjet Crj side has more of an income problem rather than a cost problem.

A specific number was not put on the Expressjet loss and the loss was made to sound marginal. To post that Expressjet "is losing money like a stuck pig" is inflammatory, spiteful, and inaccurate.

 

[SLFLYHI]

Don't even read the earnings report allocations for specific income receipts per airline under SKYW Inc. Creative accounting is rampant and perfectly legal in this country of economic decline. They move more money under different categories than Bernie Madoff. That doesn't mean they aren't a successful company; it just means they are good at showing profits and losses where they want to show them. Are you skeptical of my assertions? Just look at Lehman Brothers, Global Crossing, Enron, and a host of other creative accounting frauds . Bottom line, Skywest pilots, shut the fk up and get in line. XJT is running the show now. We are not a part of your stupid student council- in-house sissy party. We don't care how much you love being dominated and subjugated. We don't play like that. Call it East Coast, Call it West Coast. Call that TA dead on arrival. The combined XJT pilot group is the majority economic engine behind Skywest Incorporated. If you want to live in the land of make believe and think that your little 30% pilot group drives the prosperity, then you are woefully mistaken. Keep dreaming your Joseph Smith dreams and wearing your special under garments, and we'll keep demanding a working man's wage appropriate for the work.

Post of the Century. Amen brother.

 

[Mr. Johnson]

"The combined XJT pilot group is the majority economic engine behind Skywest Incorporated."

Please see a doctor, your medication needs adjustment.

 

[Clutch]

It's the ERJ side of XJT that is losing money

 

[SiuDude]

Does anyone know what XJT charges per hour under the FFD agreements with Delta and United?

About tree fiddy.

 

[XPOO]

I subtracted the OO "Airlines" revenue and income from the Inc. totals using the info posted on SWOL. I got revenues of 382.2 mil, net income of 7.65 mil, and a net margin of 2.00%. This is for Inc. minus Skywest Airlines, ie. almost completely Expressjet Airlines. Please help me reconcile my numbers with your assertion that "ExpressJet is losing money like a stuck pig." Thank you.

The link to the transcript of the earnings call can be found here.

You can read it for yourself. But here are a few nuggets for you:

"I will make just a very general comment that there was no profitability at ExpressJet in the quarter. I mean, it generated a net loss."

"But for the quarter, specifically we did - we had a small operating loss and of course, the profitability for this quarter came out of, as we mentioned Mike went through this in his remarks. We had the gain and then SkyWest Airlines of course had a very profitable quarter."

"So, look, generally speaking, I would still expect that through 2014 we'll make continued progress but I would say 2014 will still generate a loss. And then into 2015, we got to get it to that point back to breakeven and some earnings. So, I mean, its admittedly is going to take a little time."

Also, in this transcript you will notice that the company sold all of its stake in Air Mekong which was recorded as a $5M profit on top of SkyWest's $18.75M. They went on to say that they have received payments from TRIP which were relfected in the overall profit but that the amount of those payments can not be discussed until the final payment has been received, which will happen in the third quarter of 2014.

 

[XPOO]

A specific number was not put on the Expressjet loss and the loss was made to sound marginal. To post that Expressjet "is losing money like a stuck pig" is inflammatory, spiteful, and inaccurate.

Forgive me. Allow me to draw a better analogy. The faucet has been leaking for years, but its not leaking as much these days.

 

[Freebrd]

That faucet to BH & other XJT management types is wide f#%€ng open for the "great job" they're doing. What is BH's salary, 1.3 mil? Uh huh.