AA results

[Buck]

Airlines for America’s annual summer forecast predicts that U.S. airlines will carry 206.2 million passengers in the June-August peak flying season, just 5 percent below the record of 217.6 million. A record number of passengers will fly internationally this summer, and the total of travelers is expected to reach 26.8 million, beating last summer’s record of 26.3 million. According to A4A President and CEO Nicolas E. Calio, customers are benefiting from record airline operational performance and greater access to the global economy while fares continue to trail the price of other services.

Is AA going to have similar results?

 

[FWAAA]

Airlines for America's annual summer forecast predicts that U.S. airlines will carry 206.2 million passengers in the June-August peak flying season, just 5 percent below the record of 217.6 million. A record number of passengers will fly internationally this summer, and the total of travelers is expected to reach 26.8 million, beating last summer's record of 26.3 million. According to A4A President and CEO Nicolas E. Calio, customers are benefiting from record airline operational performance and greater access to the global economy while fares continue to trail the price of other services.

Is AA going to have similar results?

The bolded part shouldn't be news to anyone in the airline industry.

Will AA have similar results? For the first four months of 2012, unit revenue is up more than 10% year over year and total revenue for those four months is about $800 million more than the first four months of 2011. So far, AA's results are impressive.

 

[La Li Lu Le Lo]

Not with the current AA management. Though, I doubt Horton will be in there long. If you look at his history he is a UNION busting corporate hit man. I am sure very soon we will have a changing of the guard one way or the other. Look at all the execs leaving now.

 

[Frank Szabo]

The bolded part shouldn't be news to anyone in the airline industry.

Will AA have similar results? For the first four months of 2012, unit revenue is up more than 10% year over year and total revenue for those four months is about $800 million more than the first four months of 2011. So far, AA's results are impressive.

When any corporation can weasel out of its obligations, they usually do make money.

 

[FWAAA]

When any corporation can weasel out of its obligations, they usually do make money.

Agreed. So far, AA has shown that it is able to increase revenue. If AA can keep it up for the rest of the year, then total revenue should be about $2.4 billion higher than last year's total revenue of almost $24 billion.

Once the cost savings start showing up, making money should be pretty easy.

 

[WorldTraveler]

Agreed. So far, AA has shown that it is able to increase revenue. If AA can keep it up for the rest of the year, then total revenue should be about $2.4 billion higher than last year's total revenue of almost $24 billion.

Once the cost savings start showing up, making money should be pretty easy.

Since fuel pricings are softening, holding onto the revenue increases might not be as easy.
Also, if AA is reducing its schedule due to staffing issues as has been reported, it will help RASM but overall revenue might increase.

It is also not known how much revenue AA picked up because of UA's problems and how much of what it did pick up it will keep.
OTOH, potential labor problems at both AA and UA could affect either or both.

If AA can get past Labor Day with lower costs and without labor major difficulties, its ability to choose its own future is pretty certain.

 

[Buck]

7:48 PM on Fri., May. 11, 2012

With the Section 1113 hearings resuming on Monday, it's a good time to do a fresh summary of all the requests for fees and expenses that have been submitted so far.

Our current count, as of close of business Friday, was $58.7 million, of which the lawyers, consultants, advisors, etc. can claim 80 percent now and 20 percent later. They also have applied for $2.7 million in expenses.

 

[eolesen]

OK, so fees and expenses have come to ~60M after six months. It's not something I'd waste too much time getting worked up over...

Let's assume the run rate continues at $10M per month, and the end bill is around $200M.

If AMR hits the $2B savings target for just two years (likely), that works out to 5% commission. That's not even taking into consideration revenue improvements. If it works out to a 10% commission, there's still a significant savings being realized the company couldn't manage to obtain outside of the courthouse.

Some people pay realtors 3-6% to help them sell a house. Even in a short sale, the mortgage holder is paying out a 5% commission to the realtors so that they can get the property off the books.

You guys pay two hours a month to the union, right? What's the net savings you're realizing from that 1.1% commission?

 

[Buck]

OK, so fees and expenses have come to ~60M after six months. It's not something I'd waste too much time getting worked up over...

Let's assume the run rate continues at $10M per month, and the end bill is around $200M.

If AMR hits the $2B savings target for just two years (likely), that works out to 5% commission. That's not even taking into consideration revenue improvements. If it works out to a 10% commission, there's still a significant savings being realized the company couldn't manage to obtain outside of the courthouse.

Some people pay realtors 3-6% to help them sell a house. Even in a short sale, the mortgage holder is paying out a 5% commission to the realtors so that they can get the property off the books.

You guys pay two hours a month to the union, right? What's the net savings you're realizing from that 1.1% commission?

0%

 

[Frank Szabo]

... snip

You guys pay two hours a month to the union, right? What's the net savings you're realizing from that 1.1% commission?

I'm not "saving" a thing from paying to be "represented" by a group actually working for the company - it's the other way around.

That 1.1% commission you speak of cost us approximately 30% in total compensation in 2003 and will cost another 25% or more shortly.

 

[eolesen]

Maybe you guys should have hired Boston Consulting instead of the company doing so...

 

[MCI transplant]

Maybe you guys should have hired Boston Consulting instead of the company doing so...

Maybe you guys should have hired Boston Consulting instead of the company doing so...

Don't be a smart arss E !!!! ----These people have enough on their plate right now!

 

[Buck]

Maybe you guys should have hired Boston Consulting instead of the company doing so...

Your suggestion is a good one, however you are just becoming confused with our need for anyone but the TWU.

You must mean we need a different type labor representative. I see where you could become confused.

 

[Rogallo]

Don't be a smart arss E !!!!

He can't help it..!!

 

[eolesen]

I was born a smart ass. It's the only way I survived 15 years at HDQ.