AA reports record quarterly and yearly profit

[WorldTraveler]

feel free to define it how you want but if their revenue is improving, it is not dumping capacity.

Since the specific comment about DL was LHR and DL has said their performance has improved at LHR, LHR is turning out exactly as I said it would... AA had a protected market in which other carriers could not compete in and now 5 years after gaining access to LHR, DL serves many of the top US-LHR markets with its own markets and when you throw in VS as well, DL is in a very good position.


btw, AA does not have a structural cost advantage. Look at the consolidated RASM for each of the big 3 carriers.

AA has a slight mainline CASM advantage for the 4th quarter but the 4th quarter closed before the FA and other joint CBAs and the pay raises with them went into effect.

I'm sure you are aware that AAL stock is leading the industry down today based on AA's revenue comments which mirror exactly what I said would take place as low fare carrier capacity is added.

http://www.businessweek.com/news/2015-01-27/american-airlines-plans-2-billion-buyback-as-fuel-drops

"American Airlines Group Inc. (AAL:US) fell the most among its U.S. peers after saying that airfares are starting to drop because low-fare domestic rivals are adding seating capacity in some markets.

"The squeeze is showing up in an industry gauge of revenue from each seat flown a mile. That benchmark will decline by 2 percent to 4 percent this quarter, American said Tuesday on a conference call -- a forecast that overshadowed news such as a $2 billion stock buyback and $5 billion in 2015 fuel savings.

"American cited extra seating capacity in 50 markets, including some trans-Atlantic routes. Many of the cities are served from Dallas, Philadelphia, Chicago and Washington, where discounters are expanding, according to Fort Worth, Texas-based American. The airline had to give up flying rights in Dallas and Washington as part of the 2013 merger with US Airways Group. "

btw, DL had nothing to do with adding low fares to any of AA's domestic system. you'll have to blame the "other Dallas based airline" and the New York one for doing that. and then a few ULCCs.

 

[AANOTOK]

"SIGH"

 

[700UW]

Can we have not one thread involving Delta on another airline's thread?

 

[WorldTraveler]

Build a bridge and get over it.

Since AA executives specifically mentioned the revenue pressures and DL by name, it is absolutely relevant.

and there has been nothing more said about DL than what the executives or other participants specifically noted.

 

[700UW]

Build a bridge and get over it.

Since AA executives specifically mentioned the revenue pressures and DL by name, it is absolutely relevant.

and there has been nothing more said about DL than what the executives or other participants specifically noted.

 

[Kev3188]

 

Can we have not one thread involving Delta on another airline's thread?

 
Seriously.

 

[nycbusdriver]

That is why (imo) it is dumbfounding, mind boggling (use whatever narrative you want) that (1) Mr. Parker will not allow ALL employees to share in the rewards (4%) without any strings attached, 

 
Don't be dumbfounded.  It's part of the Gerry Glass MO, and comes as no surprise whatsoever to the LUS unionized employees.
 
Missing Horton, yet?  You will.

 

[MetalMover]

 
I'm sure they're very eager to give us something despite no progress in preparing for negotiations, lawsuits against the Association and moving that process forward and lawsuits making allegations of serious maintenance lapses.

I believe the decision to exclude many employees from the 4% was made BEFORE the  ORD lawsuit. As for the lawsuits against the association, tell me why the company would care WHO represents the ground workers? Are you telling me AA prefers the association which has not even come to fruition yet? 
Maybe showing good faith by returning the retiree medical prefunding and giving all employees a 4% raise as appreciation for a historical record 2014 would have promoted a willingness to meet and speak with the company and avoid these negative actions.

 

[swamt]

And where is the TWU. And what are they doing to get our piece of this 4B dollar pie?

The TWU already agreed to give up profit sharing for the mechanics and others they represent.  And it was done without one peep of input from the membership.  TWU gave up PS for a 4.3% raise.  4.3% of what = what? 1.20 maybe 1.50 per hour max.  Take that times 2080 hrs per year = 3,120.00 in raises for the year 2014.  Now take the 4.2 Billion and figure out what % of your yearly income would have gone to PS.  Pretty sure you will see the PS would have been prob at least double the raise total.  And all this was givin up by the TWU without membership vote or input.  AND, this raise of 4.3% you guys were gonna get at a later date anyway, but the TWU still volenteered to give it away anyway, instead of just patiently waiting for the raise and still recieve the PS as you guys still do not have a new contract yet.  Great work TWU, great work.
 

Let's not forget the time and money the TWU is spending trying to punish the former boards of locals 541 and 542. They should be focused and using resources on moving forward.
Just let those people vote and move on. They are screwing everyone.

And this is just an example of what you guys can expect from this association crap.  It's going to get worse and it's going to get ugly between the TWU and IAM with all the infighting within the 2 unions all about who controls who and what...

 

[swamt]

Wow.  1.1B for 4th Q, and 4.2B for the year.  Great to hear.  Congrats to all AA employees for the record numbers.  Hell, AA made in 4th Q what we made full year 2014.  I sure hope you guys can get the PS back.  It is a nice added bonus to retirement.  Good luck guys there should be a decision coming from the NMB (according to the TWU) This week marks 25 weeks since filing.  I still say something is up, and it won't be good news...

 

[NYer]

I believe the decision to exclude many employees from the 4% was made BEFORE the  ORD lawsuit. As for the lawsuits against the association, tell me why the company would care WHO represents the ground workers? Are you telling me AA prefers the association which has not even come to fruition yet? 
Maybe showing good faith by returning the retiree medical prefunding and giving all employees a 4% raise as appreciation for a historical record 2014 would have promoted a willingness to meet and speak with the company and avoid these negative actions.

 
It may have been before the lawsuit but it certainly wasn't before all the trouble in ORD. The lawsuit itself talks about the station visit in early December, which is after the airline was notified in early October of the AIR 21 complaints and those which submitted those complaints were already represented by legal counsel. One of the points in the lawsuit refers to comments made by a member of management and that took place in September of 2014. The 4% was announced on December 23rd.
 
They also saw how the negotiations with the three smaller TWU groups were halted and postponed. An action that caused those groups to seek a new representative organization.
 
I agree with you, they many not care who represents who but they also want the process to come to a conclusion in order to begin negotiations on a JCBA.
 
They could argue they showed good faith by announcing the 4% for everyone despite not being in a Section 6 situation and not even being in active negotiations with the TWU, IAM or Association.

 

[Bogey]

Wow.  1.1B for 4th Q, and 4.2B for the year.  Great to hear.  Congrats to all AA employees for the record numbers.  Hell, AA made in 4th Q what we made full year 2014.  I sure hope you guys can get the PS back.  It is a nice added bonus to retirement.  Good luck guys there should be a decision coming from the NMB (according to the TWU) This week marks 25 weeks since filing.  I still say something is up, and it won't be good news...

Are you talking about the association or the other groups trying to get out of the TWU?

And where you say (according to the TWU), is that something you heard or read?

 

[MetalMover]

 
 
They could argue they showed good faith by announcing the 4% for everyone despite not being in a Section 6 situation and not even being in active negotiations with the TWU, IAM or Association.

The 4% was for a successful 2014.......EVERYONE should have shared in the reward......Negotiations have nothing to do with a SUCCESSFUL 2014.

 

[NYer]

The 4% was for a successful 2014.......EVERYONE should have shared in the reward......Negotiations have nothing to do with a SUCCESSFUL 2014.

 
And we have a CBA.
 
I don't believe you'd be so open to the issue if 2014 was a bad year and they wanted to take 4%.

 

[AANOTOK]

 
And we have a CBA.
 
I don't believe you'd be so open to the issue if 2014 was a bad year and they wanted to take 4%.

But that's not the case NYer... The fact is, it was a good year and ALL employees were rewarded with a nice little 4% bump. It's just some work groups were at the end of a string with a carrot attached being dangled in front of our leaderships eyes. I busted my ass, not the leadership, so give me my thank you bump now. You know damn well if it were the scenario you describe and we were giving back 4%, that money (or vote for it) would have happened yesterday. I know I know, it's just the little "Association" bickering world we live in these days.