Virgin America 2Q loss $31.7 million

[Flyer1015]

Apparently there is a new VP of Network Planning/Revenue. He's pushing for this change, and it does make financial sense. VA's first quarters have always been the worst compared to the other three quarters. By eliminating some unprofitable flying (redyes, midweek flights), VA is cutting its schedule 3% for the first quarter Jan 1 - March 30. By trimming the schedule and not paying for fuel expenses on flights where money isn't being made, the plan is to cut the overall loses that are traditionally seen in the first quarter. Note that as soon as Apr 1 comes, the flight schedule goes BACK to normal 100% operations.

 

[bri5150]

I am not concerned about a media outlet that thinks we need to restructure. We are private. There is only so much they/we know. One instance I heard may be happening is we pay through the roof for airplane leases, but we lease from our investors. Possible, sure?

We have stopped growing (scheduled break in deliveries) and we made a profit quarter 3. It also sounds like the numbers are good for quarter 4. Of course, the next comment will be about putting a year together. I'll take a couple quarters at this point.

 

[Blue Dude]

A profitable quarter or two is nice, but occasional quarters of single digit millions in profit hardly make a dent in years of double digit millions of losses. Give me 55 dollars, then 72 dollars, then 32 dollars, on and on so you're 600 in the hole, now I give you 5 back. Look, a profit! Now you're only 595 in the hole. Wake me when you break even, much less show a return.

 

[bri5150]

A profitable quarter or two is nice, but occasional quarters of single digit millions in profit hardly make a dent in years of double digit millions of losses. Give me 55 dollars, then 72 dollars, then 32 dollars, on and on so you're 600 in the hole, now I give you 5 back. Look, a profit! Now you're only 595 in the hole. Wake me when you break even, much less show a return.

As predicted. My point is that investors kept the place open when we were losing money. Why would they pull out once we start making a little? I am not saying we are financially free and clear now...trust me.

 

[ImbracableCrunk]

I am not concerned about a media outlet that thinks we need to restructure. We are private

God save our gracious Queen,
Long live our noble Queen,
God save the Queen!
Send her victorious,
Happy and glorious,
Long to reign over us,
God save the Queen!


etc. etc. etc.

 

[ackattacker]

I am not concerned about a media outlet that thinks we need to restructure. We are private. There is only so much they/we know. One instance I heard may be happening is we pay through the roof for airplane leases, but we lease from our investors. Possible, sure?

We have stopped growing (scheduled break in deliveries) and we made a profit quarter 3. It also sounds like the numbers are good for quarter 4. Of course, the next comment will be about putting a year together. I'll take a couple quarters at this point.

I don't know what they are telling you guys, but they only just released the 2nd quarter numbers so I question how you would know they made a 3rd quarter profit. And is that "operating" profit or "actual" profit? Are these hard numbers or management spread rumors?

As for the leases... sure they could be throwing lots of money at their investors. But if they have to borrow from investors, which they clearly are, in order to pay their investors, well, in the long run that's a description of a Ponzi scheme.

 

[XJAVRO]

I don't know what they are telling you guys, but they only just released the 2nd quarter numbers so I question how you would know they made a 3rd quarter profit. And is that "operating" profit or "actual" profit? Are these hard numbers or management spread rumors?

As for the leases... sure they could be throwing lots of money at their investors. But if they have to borrow from investors, which they clearly are, in order to pay their investors, well, in the long run that's a description of a Ponzi scheme.

What is your deal with Virgin? Did they not hire you or something?

 

[bri5150]

I don't know what they are telling you guys, but they only just released the 2nd quarter numbers so I question how you would know they made a 3rd quarter profit. And is that "operating" profit or "actual" profit? Are these hard numbers or management spread rumors?

As for the leases... sure they could be throwing lots of money at their investors. But if they have to borrow from investors, which they clearly are, in order to pay their investors, well, in the long run that's a description of a Ponzi scheme.

I will roughly summarize what the email said. It basically said we just finished the numbers for quarter 3 and they were good. We made money. Also, our projections say that quarter 4 will be even better. Then it went on to talk about the bloodbath that is 1st quarter at Virgin every year and how they are going to minimize the loss so we can put a profitable year together. That is where the talk from the media is coming from about the pull down of flying and offering leaves. It then says we need you back for quarter two when we go back to our full schedule. It was a side note from a recurrent class where the CEO said hiring pilots again in quarter 1. That would be classified as more of a rumor since I didn't hear it with my own two ears (or see with eyes).

 

[Tomct]

Jet....now you are comparing Virgin with Midwest Express?? Is that a JOKE??? Here's the difference, we have a visionairy "BILLIONAIRE" who knows what it will take and how to get it there...hence the profitable 3rd quarter with the 4th to follow.

Have a nice day!

 

[Green Banana]

Be carefull there, your {visionairy "BILLIONAIRE" who knows what it will take and how to get it there} is not without fault. He has had many ventures fail.

Virgin Cola
Virgin Vines
Virgin Vodka
Virgin Energy Shot
Virgin Ooze
Virgin Brides
Virgin Vie
Virgin Clothing
Virgin Cars
Virgin Ware
Virgin Megastore
Virgin Flowers
Virgin Pulse
Virgin Digital
Virgin Express
Virgin Charter
Virgin Student

All were started with HUGE fan fair, lost tons of money, then were sold off or shut down.

 

[Grandpa +65]

Be carefull there, your {visionairy "BILLIONAIRE" who knows what it will take and how to get it there} is not without fault. He has had many ventures fail.

Virgin Cola
Virgin Vines
Virgin Vodka
Virgin Energy Shot
Virgin Ooze
Virgin Brides
Virgin Vie
Virgin Clothing
Virgin Cars
Virgin Ware
Virgin Megastore
Virgin Flowers
Virgin Pulse
Virgin Digital
Virgin Express
Virgin Charter
Virgin Student

All were started with HUGE fan fair, lost tons of money, then were sold off or shut down.

Do not forget. Virgin Kool-aid :laugh:

 

[UM#1]

Be carefull there, your {visionairy "BILLIONAIRE" who knows what it will take and how to get it there} is not without fault. He has had many ventures fail.

Virgin Cola
Virgin Vines
Virgin Vodka
Virgin Energy Shot
Virgin Ooze
Virgin Brides
Virgin Vie
Virgin Clothing
Virgin Cars
Virgin Ware
Virgin Megastore
Virgin Flowers
Virgin Pulse
Virgin Digital
Virgin Express
Virgin Charter
Virgin Student

All were started with HUGE fan fair, lost tons of money, then were sold off or shut down.

The Virgin Group consists of over 400 companies, so with your 17 listed that's a failure rate of about 5% (rounded up even)....

 

[FlyUnder]

Jet....now you are comparing Virgin with Midwest Express?? Is that a JOKE??? Here's the difference, we have a visionairy "BILLIONAIRE" who knows what it will take and how to get it there...hence the profitable 3rd quarter with the 4th to follow.

Have a nice day!

Oh brother...

 

[HA25]

SWA pay rates only became industry leading after the legacy bankruptcies post 9/11...

the proverbial ugly girl at the end of the bar, after a long night of drinking...

 

[Splert]

I will roughly summarize what the email said. It basically said we just finished the numbers for quarter 3 and they were good. We made money. Also, our projections say that quarter 4 will be even better. Then it went on to talk about the bloodbath that is 1st quarter at Virgin every year and how they are going to minimize the loss so we can put a profitable year together. That is where the talk from the media is coming from about the pull down of flying and offering leaves. It then says we need you back for quarter two when we go back to our full schedule. It was a side note from a recurrent class where the CEO said hiring pilots again in quarter 1. That would be classified as more of a rumor since I didn't hear it with my own two ears (or see with eyes).

Made money?

Operational profit or net profit.

I suspect VA may have produced a Gross Profit but did NOT "make money" net the expense for capital equipment (interest).

We'll see.

Good luck!