UAL posts big loss in 1st Q

[flyby]

What were they doing the last 38 mos?

"They pledged to cut $400 million by next year by streamlining functions, spending less on advertising and eliminating an unspecified number of salaried and management jobs."

Anybody else find this perverted? The airline spends 38 months in bankruptcy, presumably making their company more efficient and profit-prone yet with the wave of a wand they can cut ANOTHER 400 million in a year?? If it's that easy to cut 400 million a year then do it for 2 years and they'll be taking their profits to the bank in baggage carts.

 

[32LT10]

How did NWAC get into this conversation?

PS: UAL had a $171M operational loss this quarter, and this was with 33% of their fuel hedged. No hedges for the remainder of the year.



imp:

And at what price was that 33% hedged at? If you care to review listen to the CC you will find that UAL is planning to hedge fuel for the remainder of the year. The information is out there you just have to look for it.

 

[lowecur]

And at what price was that 33% hedged at? I have no idea, how much? If you care to review listen to the CC you will find that UAL is planning to hedge fuel for the remainder of the year. Only time will tell if this is a smart move? They certainly have the cash to do it, but isn't the annual nutt on the $3B note fairly hefty? They could look like genius' if oil goes between $80-$100. Anything in between may be a wash. The information is out there you just have to look for it.

UAL mgt has had 3 years to get their business plan in order. AMR/CO both made an operational profit this quarter even with pension debt. UAL did not. They now plan to cut another $400M that includes many in mgt level. This is probably a good idea as they seem to have a penchant for spending hundreds of millions on consultants to make their decisions for them. Revenue has not been a problem for UAL yet, but costs are. The challenge will be to trim costs large enough to be meaningful in relation to the growing challenge of maintaining a stable revenue stream in the face of rising oil and the assault by SWA on (2) key hubs.....IAD and DEN.

imp:

 

[32LT10]

lowiqer,

SWA has not had a major impact on UAL at DEN and I suspect the same at IAD. You forget UAL fought a much dumber and bigger Flyi at IAD and won. SWA will hurt F9 at DIA and JBLU and AAi at IAD much more so than UAL.

 

[lowecur]

lowiqer,

SWA has not had a major impact on UAL at DEN and I suspect the same at IAD. You forget UAL fought a much dumber and bigger Flyi at IAD and won. SWA will hurt F9 at DIA and JBLU and AAi at IAD much more so than UAL.

Spoken like a true ostrich. SWA should have 40-50 flts up running at DEN soon, and they are pushing IAD for gates. SWA is painted into a corner with their one a/c business model and regressing oil hedges. They know the only way to grow revenue is to prey on the vulnerable at hub airports. They have targeted F9, but it's a double edge sword, and the fact they are interested in IAD should tell you that.

By the way, UAL didn't defeat Flyi......their own business model did.

imp:

 

[Tomct]

The fact that you are comparing Flyi and Southwest is laughable at best! I think that UA may be in some big trouble! They better be very bery Careful!hahhahaha

 

[Tejas-Jet]

Maybe this is why SWA decided to move into DIA so they can be established when UAL shuts down there.

Uhhhh....no. SWA went into DEN for one reason and one reason only....they saw that they could make a profit there.

Unlike the rest of the industry, SWA doesn't go putting "market share" above everything else. Profits is the name of the game....regardless of which airline already serves a given airport. ..and profits are what they want....from day one at a given market.

Tejas

 

[32LT10]

By the way, UAL didn't defeat Flyi......their own business model did.

imp:

lowiq,

So if UAL were to fold in DIA and IAD after SWA entered the market would you claim that it was the UA business model or the competition that doomed them? Your two faces are showing.

It is JBLU that will find SWA at IAD the most troublesome. UAL has been dealing with LCC traffic at IAD for a long time. We had Song, Metrojet, Flyi and now SWA. The ATC issues alone at IAD will be a pleasure to see SWA operate in.

In DIA UAL has been battling F9 for several years and I suspect that F9 will be the next domino to fall. You yourself said they needed to merge with JBLU to survive and Holly just put them on the Titanic watch list. Also heard that SWA was already upset with the DIA user fees. Like you said with fuel hedges expiring at SWA the need to find homes for the new airplanes is imperative. The need to find profitable homes is urgent.

 

[Lake Alice]

Quote:
Originally Posted by lowecur
All the cost cutting in the world can't undue poor mgt decisions. This is an airline that is ripe for consolidation with CAL. If that happens, look for hub closers in CLE, DIA, and IAD. LAX, SFO need to remain viable due to strong Pacific rim route network. If that happens, B6 need not worry about FRNT.

OMG....

Lowecur, what are you doing? Ony 32 is allowed to point out when a company does poorly. You're stealing his thunder.

32 you can quote all the number crunched data your execs spit out but there is one overwhelming fact that seals your fate....scumbags like you remain on the pay roll and for that your future is in serious question.

Feel free to keep posting what ever you want though, It's comical at best.


32 is a pinhead of course. However, anyone that works for a company that is not able to generate the revenue to cover costs has a "future in serious question." As a blue bus driver, I guess you now understand that reality.


You are 100% correct and we do understand that reality. Unlike pihead we have good people and good leadership who hopefully will lead us in the right direction. Only time will tell.

 

[AA717driver]

I just want to know how UAL left $700M in cost reductions untouched in Ch.11? That's the whole friggin' point of being in Ch.11.

BTW, of the $4.5B, how much is unencumbered? TC