United Q1 $542M loss

[pilotgolfer]

You really think they'll need to furlough more than 600?

The release only said 600 union represented employees. It didn't specifically say pilots. If you park 30 Guppys, I would say a ballpark of 300 pilots could be gone. Who knows the actually crew ratio per plane for the 737's?

Let the dust settle before you jump to too many conclusions. 600 or 300 is irrelevant to me personally...being at the bottom of the list.

 

[lowecur]

Wow! That didn't take long for some azzwipe to call for the demise of UAL. That's faster than back in 02/03.
What do you think this industry slowdown is going to do to your precious Embraer stock?

Andy, you nincumpoop...go suck on your binky to help with those anxiety attacks.

I bought my stock at $14., and it will take a catastrophic depression to get back there. ERJ is well diversified in the world market, and Brazil is presently a creditor nation that imports no oil (who would have thought) and has just discovered a huge oil deposit offshore.

Neeleman will make another fortune in his new venture, as long as they remove him prior to the airline maturing. Brazil is the place to be in the coming years. They are going from a third world has been, to an economic powerhouse in the next decade.

imp: ​

 

[flygirlqt]

Andy, you nincumpoop...go suck on your binky to help with those anxiety attacks.

I bought my stock at $14., and it will take a catastrophic depression to get back there. ERJ is well diversified in the world market, and Brazil is presently a creditor nation that imports no oil (who would have thought) and has just discovered a huge oil deposit offshore.

Neeleman will make another fortune in his new venture, as long as they remove him prior to the airline maturing. Brazil is the place to be in the coming years. They are going from a third world has been, to an economic powerhouse in the next decade.

imp: ​

UAL just dipped below $14, down 34.77%

 

[Kugelblitz]

Wow! That didn't take long for some azzwipe to call for the demise of UAL. That's faster than back in 02/03.
What do you think this industry slowdown is going to do to your precious Embraer stock?

Friend, as an ex-TWA pilot who has gone through this, I wouldn't be so quick to get angry at someone pointing out an outcome that is quite possible. I can't imagine any combination of mergers that would resolve this intractable financial situation evolving at United. I doubt CAL is going to be quick to wed a company

If you are a UAL pilot at this time, you had better be thinking about 'the day after' and make contingency plans. With fuel prices the way they are and what is an apparent drop in air travel demand, things are just starting to get ugly.

Very best of luck to all of you, and I sincerely mean that. But don't live in denial about the possibility of job loss, you are only hurting yourself.

 

[contrail67]

The release only said 600 union represented employees. It didn't specifically say pilots. If you park 30 Guppys, I would say a ballpark of 300 pilots could be gone. Who knows the actually crew ratio per plane for the 737's?

Let the dust settle before you jump to too many conclusions. 600 or 300 is irrelevant to me personally...being at the bottom of the list.

And the schedules are already at 90+ hours per month...if that number is decreased it could reduce any furloughs if any are to happen. Remember the statement said they "expect" to furlough by the end of the year.

 

[ualdriver]

End of Q4 cash/equivalents was $3.55B; end of Q1 cash/equivalenets is $2.9B. I didn't pull any numbers apart, so that was first WAG back of envelope.

When we went into BK the last time, $2B was the critical number. Less than that, we couldn't come out the other side.
I know Q1's a weak quarter, but how much has the price of oil risen this quarter?
The unencumbered assets help.
The lack of deliveries help.
The aircraft coming off of lease help. (We could park more than 30 if things get worse).

I backed out the special dividend to come up with $300M. I seriously doubt that there will be a second special dividend. However, I've been wrong in the past and will be wrong in the future.

Those numbers were truly ugly. I don't see posturing for contract negotiations (way too early); every other airline's reporting bad numbers. I don't even think that these were kitchen sink numbers; I think that they were pretty straight up bad.
I'm only ~600 from the bottom so I figure that I'll be gone right after Christmas. I expect the first round of furloughs to occur this fall. Good luck to you and everyone left standing; I hope that they can avoid BK this time around.

I think we're a long ways from entering bankruptcy again and I'm not just saying that because I'm a UA employee and I'm fearing for my job or something ridiculous like that.

We didn't even go into bankruptcy the first time until we were down to 1B in cash. We now have 2.9B and 3B in unleveraged assets. Over the last 12 months, we've burned through 573M, 250M of which was a dividend AND there was some debt repayment in that number. I can't imagine they're going to do that again!

And we're not laying off 600 pilots- or I should say that they didn't say we were laying off 600 pilots. They just mentioned a number of "represented" employees that are going to be let go. Could be pilots, mechanics, CSR's, F/A's, whoever.

I think the UA employees reading all of this bad news need to take a breather (not you Andy but the lurkers who never post at all). Take the gloom and doomers who normally post here with a grain of salt. Most of them haven't a clue as to what the actual financial situation of any airline is other than what they on this forum, and unfortunately that's not saying much.

Yes, the numbers are probably the worst in the industry for 1Q '08. We're sitting on cash, we're sitting on hard assets that can be borrowed against (if it even comes to that), and there are no covenants (bank, credit card) that we're even coming close to violating.

The bottom line is that the entire industry needs to charge fares to cover its costs, and they're not doing that right now. When if/they do, I suspect our losses won't be as bad or, perish the thought, we might actually make some money.

 

[Poahi]

Andy,

What would be the effect of the Federal Government removing the tax on jet fuel? Would that make enough of a difference?

 

[scarlet]

yeah 2.9 billion and losing 500million every 3 months??

2.9 will not last long?

 

[Andy]

And we're not laying off 600 pilots- or I should say that they didn't say we were laying off 600 pilots. They just mentioned a number of "represented" employees that are going to be let go. Could be pilots, mechanics, CSR's, F/A's, whoever.

I think the UA employees reading all of this bad news need to take a breather (not you Andy but the lurkers who never post at all). Take the gloom and doomers who normally post here with a grain of salt. Most of them haven't a clue as to what the actual financial situation of any airline is other than what they on this forum, and unfortunately that's not saying much.

I agree that it doesn't say 600 pilots, nor is it specific. I'm making my plans based on being furloughed after Christmas - I think that'd be about the earliest I'd get hit.

And yes, I do tend to post the 'worst case' scenario on this.

 

[Andy]

Andy,

What would be the effect of the Federal Government removing the tax on jet fuel? Would that make enough of a difference?

Honestly, I have no idea. It might make the downturn a little less deep, but high fuel costs are occurring at the same time as demand is softening. It's going to be a tough go for all airlines, not just United.