34million Profit

[usair_begins_with_u]

Income is way too easy to manipulate.. Enron, MCI et al.. Please.. The strength or solvency or future expectations of a business extend well beyond the income statement.

The first place I would look is revenue and costs on a per unit basis. Then I would look at SG&A. Lets see if costs are going down.

You can't be a winner unless you can cover your fixed costs all year long..

I have no idea what kind of games UAir mgmt is playing right now, but my guess would be they sold the planes because they needed the cash.. I bet they had to do it, though didnt want to.. I'm pretty sure there was not a big influx of cash flow from operations, as they barely showed quarterly profit. They need all the cash they can get going to 3rd-4thQ where you know cash will run deficit.

I still dont see how they can pull off their liquidity problems without selling assetts.. Hell they couldn'd do it this most recent quarter, traditionally their best!!

This company is a goner..

 

[ITRADE]

Cash neutral for the quarter:

US Airways Group ended the quarter with total restricted and unrestricted cash, cash equivalents and short-term investments of approximately $1.73 billion, including $975 million in unrestricted cash, cash equivalents and short-term investments. US Airways began the quarter with an unrestricted cash balance of $978 million, so the company's available cash balance remained steady during the second quarter.

 

[usair_begins_with_u]

so the company's available cash balance remained steady during the second quarter.

AFTER SELLING THE PLANES!!!!


Which means they ran a cash defict before the sale of the planes.. You all know how the statement of cashflows works right??

Ha.. I was right.. Liquidation has begun!!

 

[delldude]

Unfortunately, I think some of you thinking the worst is over missed this part:



At the risk of over-simplifying, a $34M profit minus a one-time $214M reimbursement equals a $180M loss without the government reimbursement. In the strongest quarter.

duh...2004?

 

[BillLumbergh]

Total cash went up....unrestricted cash was about even.

<back to the woodwork>

 

[javaboy]

just saying a long awaiting profit instead of multi tens of millions of dollars of losses is good. in fact bear in mind, UAIR just produced more income in 90 days than DAL, UAL, AMR, AWA, CAL i would almost say COMBINED but i havent added them all up yet.

Thus the cuts are starting to take effect (not saying by any means crisis is over nor further cuts wont improve the picture) but merely a tip of the cap to the employees. Thankyou. (since nobody else says it)

thats right, even though you have higher costs than JBLU you produced a net income, and look at how AMR DAL UAL CAL NWAC fared against you. AMR CAL UAL all much larger than UAIR yet UAIR posted much bigger profit

on the surface just under 2.0 BILLION in revenue for 90 days or what 22 million per day this high cash flow rate is something closely watched. imagine if there were a .99cent price hike. something that simple because the flow rate is so high can dramatically and quickly change the picture.

now the question remains to be seen is the cashflow post go fare implentation. will it drop? or rise? i suspect it will rise very modestly (or more importantly not fall as many are predicting)

once again i state, no 1 qtr does not save a company, but in comparission with the rest of the industry kudos are deserved to those that made it happen (the employees).

 

[usair_begins_with_u]

but in comparission with the rest of the industry kudos are deserved to those that made it happen (the employees).

How many of those other airline sold 4 planes?? Any one can liquidate assets to turn a profit..

Wait till you see how many planes they have to sell next quarter to show a profit!! LOL

Can you say "Shrink into profitability"?

Short term smart, long term stupid.

 

[737nCH11]

Congrats!!!!!

 

[RowUnderDCA]

How many of those other airline sold 4 planes?? Any one can liquidate assets to turn a profit..

Wait till you see how many planes they have to sell next quarter to show a profit!! LOL

Can you say "Shrink into profitability"?

Short term smart, long term stupid.

Is the selling of an asset a profit making activity? Wouldn't it be only to the extent that you get more than you depreciated? These planes were under lease to someone else? Gee, they could have been f-100's, right?

 

[delldude]

Is the selling of an asset a profit making activity? Wouldn't it be only to the extent that you get more than you depreciated? These planes were under lease to someone else? Gee, they could have been f-100's, right?

they were supposedly selling back the new rj's i heard.

 

[AtlanticBeach]

...and if they could sell 4 a/c in each quarter, that won't hurt numbers either. Without pawning the planes, it would still be a loss.

I can not find this anywhere. What is your source for the aircraft sales?

 

[orville]

The sale of 4 A/C were only planes that were being leased by another carrier not from their fleet.

 

[LaBradford22]

Yes, that's my understanding. But our 'usual suspects' have yet to do their review of this quarter's 'unusual items.'

I just looked at the press release, and it looks like there were no unusual items in 2Q04. That's just a very good quarter, surprisingly good, for USAir. However, that does not mean the fundamental problems that the airline has are solved. It simply buys the company (and probably the Unions) a little bit more time to get things worked out.

 

[RowUnderDCA]

I can not find this anywhere. What is your source for the aircraft sales?

"The company's results for the quarter were favorably impacted by several factors, including fuel hedging, the sale of four aircraft which had previously been leased to a third party, ...."

I'm not confused by this sentence, but I have been confused by subsequent posts. Doesn't everyone READ the posted article upon which the thread is based?

 

[FM2436]

I just looked at the press release, and it looks like there were no unusual items in 2Q04. That's just a very good quarter, surprisingly good, for USAir. However, that does not mean the fundamental problems that the airline has are solved. It simply buys the company (and probably the Unions) a little bit more time to get things worked out.

I don't know how much time this buys management and the unions. The three paragraphs below are taken from an Associated Press release on US Airways' 2nd quarter.


"US Airways' financial status is reviewed quarterly by the Air Transportation Stabilization Board, which provided the airline a loan of $900 million.

In March, the loan was renegotiated to give US Airways more time to improve its finances, but the airline could be found in default by the end of September if it doesn't meet certain goals.

In morning trading, shares of US Airways rose 14 cents, or 6 percent, to $2.52 on the Nasdaq Stock Market."

BTW: the $2.52 per share has since dropped considerably.