Spirit Tops All LCCs with 7% profit margin in Q1

[gatorbird]

This one should be spread throughout the bases by today:

UPDATE: Airlines Make It Four In A Row, Profit Margin-wise

June 25, 2007: 06:34 PM EST


SAN FRANCISCO (Dow Jones) -- For the first time since 2000, the airline sector as a group turned an operating profit from January to March, according to data released Monday by the U.S. Department of Transportation that covers 21 selected passenger airlines.
The system operating profit margin came to 2.7% in the first quarter vs. a loss margin of 1.3% in 2006, making for the fourth-consecutive profitable quarter. Operating margin measures profit or loss as a percentage of the total operating revenue.
Breaking it down into the three categories, regional carries posted a profit margin of 6.3%, while the network carrier group came in at 2.5% and the low-cost carriers at 2.3%, the study showed.
Network carriers such Continental Airlines (CAL) and American Airlines (AMR) reported a combined operating profit of $559 million in the first quarter, up from a loss of $711 million a year ago.
United Airlines (UAUA) and Alaska Air Group (ALK) were the only two of the seven network carriers to post losses. Northwest (NWA) pocketed the most at $205 million .
In the low-cost group, Spirit Air enjoyed the best profit margin at 7%, while Frontier Airlines (FRNT) , JetBlue Airways (JBLU) and ATA Airways all handed in losses.
The regional carriers turned in the strongest results, with only Mesa Air Group (MESA) taking a loss in the first quarter. Atlantic Southeast and American Eagle turned in operating profit margins of 12.9% and 11.2%, respectively.
As for expenses, U.S. Airways (LCC) , Comair and American Eagle carried the highest unit costs while JetBlue, Southwest and Spirit were the lowest.
The airline group traded fractionally lower Monday, with most issues on the Amex Airline Index fading more than 1%. Frontier Airlines , Southwest and SkyWest (SKYW) were the exceptions, up just slightly.

I'd bet Indigo & Co. would have rather this news not made any headlines...

"Take it Back!"

gator

 

[tomba187]

Aay had a profit margin of nearly 12%,but since it is traded on the Nasdaq is not included in that report. Granted it was on the backs of its employee group, with their horrible wages, so its nothing to be proud about.

 

[Kharma Police]

I wish AirTran and Spirit could merge.

 

[Shrek]

I wish AirTran and Spirit could merge.

A merge would not be good for pilots in the short run.

 

[gatorbird]

Aay had a profit margin of nearly 12%,but since it is traded on the Nasdaq is not included in that report. Granted it was on the backs of its employee group, with their horrible wages, so its nothing to be proud about.

That's the point of the post, tomba187. Spirit pilots' compensation package is one of the lowest in the industry; AAY is even lower. I'm all for competitive operating costs, but there shouldn't be such a gap. And, until we demand from them otherwise, these airlines' cash-cow tactics will continue. Did you happen to notice Atlantic Southeast's operating profit margin? Wanna take a guess how long they've been working under a sub-par contract?

And if we were to merge with an Atlanta-hubbed airline, I'll take DAL, thank you. For the record, though, I'll have to agree with Shrek--mergers can get ugly, and Spirit would probably end up on the less-fortunate side of the line.

gator

 

[Kharma Police]

That's the point of the post, tomba187. Spirit pilots' compensation package is one of the lowest in the industry; AAY is even lower. I'm all for competitive operating costs, but there shouldn't be such a gap. And, until we demand from them otherwise, these airlines' cash-cow tactics will continue. Did you happen to notice Atlantic Southeast's operating profit margin? Wanna take a guess how long they've been working under a sub-par contract?

And if we were to merge with an Atlanta-hubbed airline, I'll take DAL, thank you. For the record, though, I'll have to agree with Shrek--mergers can get ugly, and Spirit would probably end up on the less-fortunate side of the line.

gator

You and I don't have a choice who our airlines decide to merge with, just ask Midwest.

 

[Shrek]

You and I don't have a choice who our airlines decide to merge with, just ask Midwest.

Now that Sir, is a true statement !!

 

[Beetle007]

I'd bet Indigo & Co. would have rather this news not made any headlines...

gator

I don't think mgmt would have "shown" a profit if they didn't want to. At their level of the game, there is a reason for everything. Don't follow the ball.

 

[FlyAirtran]

That's the point of the post, tomba187. Spirit pilots' compensation package is one of the lowest in the industry; AAY is even lower. I'm all for competitive operating costs, but there shouldn't be such a gap. And, until we demand from them otherwise, these airlines' cash-cow tactics will continue. Did you happen to notice Atlantic Southeast's operating profit margin? Wanna take a guess how long they've been working under a sub-par contract?

And if we were to merge with an Atlanta-hubbed airline, I'll take DAL, thank you. For the record, though, I'll have to agree with Shrek--mergers can get ugly, and Spirit would probably end up on the less-fortunate side of the line.

gator

AAY if im not mistaken is Allegiant. Did you mean AAI (Airtran)? Just Curious. If you meant Airtran our payscales are nearly identical to Spirits. Even better if you base it on the 319. Plus the soft pay in the current contract is unbeatable. However if this new TA takes effect (which it wont) that will be gone.

I cant think of one merger that the pilots of the "bought" airline thought worked out well.

 

[temcgrew]

AAY if im not mistaken is Allegiant. Did you mean AAI (Airtran)? Just Curious. If you meant Airtran our payscales are nearly identical to Spirits. Even better if you base it on the 319. Plus the soft pay in the current contract is unbeatable. However if this new TA takes effect (which it wont) that will be gone.

I cant think of one merger that the pilots of the "bought" airline thought worked out well.

He was talking about Allegiant....Did Airtran have a 12% profit margin?