3rd quarter results

[RowUnderDCA]

I don't fly that much anymore, but I haven't seen crazy low fares. I know, small sample.

 

[redheadtempe33]

If they get checked at the gate, no harm no foul (and no money).

Hm. They just mentioned in the state of the airline address that we have installed CC readers at a number of gates. This could get ugly.

 

[SS255]

Hm. They just mentioned in the state of the airline address that we have installed CC readers at a number of gates. This could get ugly.

True, but the oversized carry-on orgy has got to stop. If the potential loss of revenue is the motivating factor for enforcing carry-on restrictions, all I can say is more power to US.

In a perfect world, there would be no fees for the first checked bag........and airlines would not be selling tickets at a loss to fill seats.

 

[tadjr]

I don't fly that much anymore, but I haven't seen crazy low fares. I know, small sample.

They're out there, but it depends on the city pairs. I just did a random check for 12NOV and some of the cheap fares are still available. $93 ILM-SEA $69 TPA-DCA $98 MCO-PDX $84 DFW-CMH $74 BUF-FLL and even hub to hub $144 PHL-PHX. These arent as cheap as some of the recent ones I've seen such as $80 TPA-LAS, $49 TPA-MCI and $49 TPA-TYS. Hopefully the lowest fares will be able to be raised a little in the 4th quarter.
Disclaimer- There are of course certain city pairs and markets that do not get the deeply discounted fares shown here so there is no need to post them. The reply was in regards to crazy low fares.

 

[DCaf]

AMR's loss was only slightly larger than LCC's loss when measured as a percentage of revenue.

LCC just reported a net loss of $110 million, excluding special items while AMR lost $265 million, excluding special items. AMR's revenue, however, is nearly double that of LCC.

I'm sorry someone lumped the down and dirty LCC with the pristine AA. When will they learn?

If AA's revenue was exactly double LCCs, AA's loss would be $220 mil to be the same percentage. Seems it was $45 mil more than that. You must be a government accountant to blithly dismiss that as "slightly larger".

 

[Dog Wonder]

Next, cut some of the dead wood managers that hide in offices and do NADA. Another big savings....probably more than the gate bag revenue.

Managers hiding in offices are essential to their bosses.

Some one has to take the blame.

 

[USA320Pilot]

US Airways Group, Inc. Q3 2009 Earnings Call Transcript

See Story

 

[back2CLT]

It appears that the ala carte fees aren't generating quite the revenue they were advertised to generate. A year ago the extra revenue was supposed to be "$400-500 million per year". Earlier this year the number changed to "at least $400 million per year". Despite added additional fees sand increasing others since then, total "other operating income" for the first 9 months was $277 million - about $92 million/quarter or $368 million annualized - and that includes revenue from charges that predate ala carte like 3rd, overweight, oversized checked bags, UM fees, etc, Never bashful about saying how great the company is doing, though, US now says that the latest changes will allow ala carte to generate "over $500 million per year" in extra revenue.

Jim

I could be wrong, but isn't 4Q usually the month with highest passenger loads, and I would certainly assume a month with the most bags (family vacations), so they may not be as far off the $400M mark as it appears.

 

[BoeingBoy]

I could be wrong, but isn't 4Q usually the month with highest passenger loads,

The 4th quarter contains the days that generally have the highest load factors but the summer usually has higher load factors overall. Of course, with the reductions in capacity all the legacy carriers are making, this year could be an exception.

1Q07 77.7%
2Q07 83.5%
3Q07 83.4%
4Q07 78.2%

1Q08 79.0%
2Q08 83.5%
3Q08 83/9%
4Q08 80.0%

Jim

 

[vantheman63]

It appears that the ala carte fees aren't generating quite the revenue they were advertised to generate. A year ago the extra revenue was supposed to be "$400-500 million per year". Earlier this year the number changed to "at least $400 million per year". Despite added additional fees sand increasing others since then, total "other operating income" for the first 9 months was $277 million - about $92 million/quarter or $368 million annualized - and that includes revenue from charges that predate ala carte like 3rd, overweight, oversized checked bags, UM fees, etc, Never bashful about saying how great the company is doing, though, US now says that the latest changes will allow ala carte to generate "over $500 million per year" in extra revenue.

Jim

Good points....

And in the "then why isn't CO doing so much better than US" bracket....they are:

CO Trims Loss

Houston-based Continental said it lost $18 million, or 14 cents per share.

In the same quarter last year, Continental lost $230 million as it struggled with soaring jet fuel prices.

Excluding charges for severance payments and write-downs, the company said it would have earned $2 million this summer, or 2 cents per share.

Analysts, who exclude such items from their forecasts, had predicted Continental would lose 6 cents per share.

And lets not forgett he customer service survey that came out...oh, last week....where CO and WN crushed EVERYONE in the survey.....US got exactly ZERO votes for "comfort." Even I was a bit surprised by that.

 

[vantheman63]

Jim,
Apparently a long, long time……the one and virtually only thing this wacky industry has going for it is cash flow and that cash flow lets them live for another day. It is not just US Airway, airlines have been limping along financial almost forever. I think it takes a lot to kill off one of the big boys these days.
We could survive quarters like this for years.

You're right UPNAWAY....exactly right.

Although, right now, in this environment, the name of the game for 90% of businesses is "cash flow" as opposed to profits. Many businesses (mine included) are okay with taking short money in order to generate operating cash to continue to move forward during this period of de-leveraging. And it's likely this cycle will continue AT LEAST 18 more months, if not, 36.

I think it will get better for consumers over the next 12 months....but I think for businesses and business owners, it will be challenging for the next 18 months.

 

[vantheman63]

They're out there, but it depends on the city pairs. I just did a random check for 12NOV and some of the cheap fares are still available. $93 ILM-SEA $69 TPA-DCA $98 MCO-PDX $84 DFW-CMH $74 BUF-FLL and even hub to hub $144 PHL-PHX. These arent as cheap as some of the recent ones I've seen such as $80 TPA-LAS, $49 TPA-MCI and $49 TPA-TYS. Hopefully the lowest fares will be able to be raised a little in the 4th quarter.
Disclaimer- There are of course certain city pairs and markets that do not get the deeply discounted fares shown here so there is no need to post them. The reply was in regards to crazy low fares.

They're out there (crazy low fares) is right!

I actually flew US for the first tim in a long time on Thursday...TPA-PHL, 920 miles, $61 fare...$0.066/mile...and I'm flying PVD-MAD (via PHL of course) in this 4th qtr, $458 R/T, 7,836 miles...$0.058/mile.

I won't be Chairman's Preferred next year...but I still am this year...and both flights were upgraded. So, I'm riding to MAD in "Envoy" for $0.058/mile...R/T.

I think I've kept my spend on US (something like 7 segments) below $0.06/mile in total....and on CO, my spend is close to $0.16/mile....DL, $0.17/mile...and amazingly, my spend on WN has been $0.22/mile.

For perspective on my flight patterns, I'll be Platinum on CO, Gold on DL, close to if I don't make "A-List" on WN....and Silver on US, via 2 long haul trips....9 segments total.