AAL Stock

[FrugalFlyerv2.0]

wow, E, did you miss the point or just try to avoid it while looking for cute pictures?

let me help ya out.

 


part 1. The upside for DL is higher on a percentage basis than for any other airline according to weAAsle's post.

part 2. Since DL is already the highest market cap airline, a higher upside means it should retain its position given similar stock growth.

part 3. Perhaps Wall Street would like to revisit their investments for AAL based on the MAJOR winter pulldown of capacity that AA announced yesterday which indicates that Parker, as I expected, is serious about pulling non-performing capacity out of the market rather than dumping it just to keep CASM down.

part 4. DOT stats show that during winter 2014, AA's operating profit margin on the Atlantic was just 2% compared to the industry best for the region which was 16%. Across the BIG ocean, AA clocked in with a negative 20% profit margin compared to that airline that is adding all that new SEA-Asia flying but which managed to post a double digit positive margin. AA's operating margin is a couple percent better than it was a year ago.
Latin America continues to generate the vast majority of AA's int'l profits and AA's announcement to add flights to Campinas shows how badly AA will try to protect its network from low fare competition. DL continues to view Latin America as an "investment" region (using Parker's parlance but DL's losses in Latin America were half of AA's on the Pacific on an operating margin basis, driven by DL's capacity adds of up to 25% in the region.

part 5. Thus, Parker recognizes he cannot play development mode across two oceans while using Latin profits to sustain both during the winter. If the Pacific is going to be an investment region, then it makes little sense and is financially impossible to fly a great deal of developmental capacity across the Atlantic as well during the deal of winter while fighting off competitors in Latin America.

AA stock is bound to move up as investors see stronger financiali results - and good for Parker for making the choices to maximize profitability which will benefit AAL stock.

 
TRANSLATION:  nobody is better than DL!!!

 

[MetalMover]

wow, E, did you miss the point or just try to avoid it while looking for cute pictures?

let me help ya out.

 
 

Once again WT....who CARES about DL except for you?  Do you realize people on the AA board do not care in any way shape or form about what DL does? I don't even think the people on the DL board care as much for your DL rhetoric as you do.

 

[WeAAsles]

Why do you people continue to give WT the attention he so seriously craves? The guy has two obvious problems. One is mental and the other is obviously since he spends so much time on here he has no life. Place the guy on ignore and be done with him and his psychopathic obsession with Delta airlines.

And I'm long on AAL.

 

[WeAAsles]

Anyone who is getting worked up about what the price is today/yesterday needs to look out the window and see what happened with the market in general.

http://www.reuters.com/article/2014/07/31/us-markets-stocks-idUSKBN0G019T20140731

The market in general started dropping yesterday, and continued its freefall today as more bad news started coming out:

It has nothing to do with how any one airline in particular performed... when investors get spooked, it starts looking like low tide in Nova Scotia. But, the tide does come back in eventually.

Ah the Bay Of Fundy. My friend Fred used to talk about this a lot. The one place in the world he wanted to visit someday. 

 

[Kev3188]

And I'm long on AAL.

Remember not that long ago when that might as well've equated to lighting your $$$ on fire?

FWIW, I'm long on DAL and Atlas (AAWW).

 

[WorldTraveler]

TRANSLATION:  nobody is better than DL!!!

again, when the facts clearly indicate that Parker intends to run AA like a business - which he did very successfully at US - instead of the way Horton and co. ran AA - which was as much about prestige as it was about making money - then it is a given that there will not only be adjustments to AA's network and schedules but also moves that will ensure that AA is profitable in all of its regions on a year round basis.

DL happens to have done that. I am more than happy if AA does the same.

If AA wants to surpass the market cap that DL has, AA will have to do the same things that AS, DL, and WN have done to fly when it is possible to make money, limit "developmental flying," and strengthen the balance sheet on a long-term basis.

If those comparisons are hard for you to read, then perhaps you and others shouldn't engage in business related discussions abou the industry.
 

Why do you people continue to give WT the attention he so seriously craves? The guy has two obvious problems. One is mental and the other is obviously since he spends so much time on here he has no life. Place the guy on ignore and be done with him and his psychopathic obsession with Delta airlines.

And I'm long on AAL.

No, the only ones that have problems are those that don't want to talk about the reality of the data that you posted?

did you actually read ALL of what you posted and not just focus on the AAL line?

YOU provided the post, which combined wiht the network announcements yesterday, validate that Parker intends to improve AAL's stock performance.

Your spouting "DL obsession" instead of being willing to focus on the issue at hand speaks volumes about either your blind faith in your employer and your lack of willingness or knowledge to discuss the market and financial issues OR your teflon-coated personality that works feverlishly to extinguish anything that might in the least be critical, even if it constructive.

I am bullish on AA over the long-term - I have said as much.

but when Parker takes a major whack at AA's winter schedule just exactly as I said he would, then it indeed says that he intends to run AA as a business first and foremost and far less as an instrument of prestige.

I say good on him and if AA stock soars and surpasses AA because of strategic moves like that, all the better.

The industry AND AA will be better off when AA is run in a manner that most maximizes revenue.

 

[FrugalFlyerv2.0]

again, when the facts clearly indicate that Parker intends to run AA like a business - which he did very successfully at US - instead of the way Horton and co. ran AA - which was as much about prestige as it was about making money - then it is a given that there will not only be adjustments to AA's network and schedules but also moves that will ensure that AA is profitable in all of its regions on a year round basis.

DL happens to have done that. I am more than happy if AA does the same.

If AA wants to surpass the market cap that DL has, AA will have to do the same things that AS, DL, and WN have done to fly when it is possible to make money, limit "developmental flying," and strengthen the balance sheet on a long-term basis.

If those comparisons are hard for you to read, then perhaps you and others shouldn't engage in business related discussions abou the industry.
 


No, the only ones that have problems are those that don't want to talk about the reality of the data that you posted?

did you actually read ALL of what you posted and not just focus on the AAL line?

YOU provided the post, which combined wiht the network announcements yesterday, validate that Parker intends to improve AAL's stock performance.

Your spouting "DL obsession" instead of being willing to focus on the issue at hand speaks volumes about either your blind faith in your employer and your lack of willingness or knowledge to discuss the market and financial issues OR your teflon-coated personality that works feverlishly to extinguish anything that might in the least be critical, even if it constructive.

I am bullish on AA over the long-term - I have said as much.

but when Parker takes a major whack at AA's winter schedule just exactly as I said he would, then it indeed says that he intends to run AA as a business first and foremost and far less as an instrument of prestige.

I say good on him and if AA stock soars and surpasses AA because of strategic moves like that, all the better.

The industry AND AA will be better off when AA is run in a manner that most maximizes revenue.

 
So predictable.  Keep on circling the wagons for DL.

 

[WeAAsles]

Remember not that long ago when that might as well've equated to lighting your $$$ on fire?

FWIW, I'm long on DAL and Atlas (AAWW).

Either choice of AA or DL is a good one IMO. I chose (LCC) because of the merger coming and because there was still good potential upside even if the merger had not happened. I also like the idea of being invested in the company I work for. Money does factor in of course to that decision though. Unfortunately if I worked for Radio Shack I wouldn't invest in it.

 

[eolesen]

Why do you people continue to give WT the attention he so seriously craves? The guy has two obvious problems. One is mental and the other is obviously since he spends so much time on here he has no life. Place the guy on ignore and be done with him and his psychopathic obsession with Delta airlines.

And I'm long on AAL.

Agree. He's on my ignore list again. If he's upset that I "missed his point" it's because I didn't read it, and don't really care about the upside for DL vs. anyone else.

And I'm not holding any airline stocks right now. Nor do I plan to.

 

[WeAAsles]

I wish AA had not announced a dividend so soon out of the starting gate though. I wish they had utilized that money to pay down some more debt first and maybe waited until next year to give something back to the shareholders. The stock buyback is good though.

From an employee perspective I like very much that they're adding an extra 600 Mil to the pensions though. Obviously I'm highly invested in wanting to see the shortfalls shored up to have less of a risk on my retirement income.

 

[WorldTraveler]

So predictable.  Keep on circling the wagons for DL.

once again you miss the point.

the point is about a strong industry.

AA will get there but they will have to do cutting of routes which don't work at least on a year round basis and will also have to change the mindset of operating routes solely for prestige.

Parker is doing it.

The fact that DL has a finished merger and offer a significant amount of seasonal European service adds validity to the fact that there are parts of any US carrier's network that cannot be flown on a year round basis.

again, good on Parker for doing what is necessary to match capacity with demand.

All AA stakeholders, including employees will be better off for it.
 

Either choice of AA or DL is a good one IMO. I chose (LCC) because of the merger coming and because there was still good potential upside even if the merger had not happened. I also like the idea of being invested in the company I work for. Money does factor in of course to that decision though.

that is the whole reason for profit sharing. Employees shouldn't have to invest their own money in their employer if they receive profit sharing - which is tied to a desire to make the cmopany work.

Clearly you have loyalty to your employer and a desire to see them win - which is great.

Profit sharing is the best way for an employee to be engaged.  
 

I wish AA had not announced a dividend so soon out of the starting gate though. I wish they had utilized that money to pay down some more debt first and maybe waited until next year to give something back to the shareholders. The stock buyback is good though.

From an employee perspective I like very much that they're adding an extra 600 Mil to the pensions though. Obviously I'm highly invested in wanting to see the shortfalls shored up to have less of a risk on my retirement income.

And you know that stock prices and dividens are competitive and that is precisely why AA announced a dividend this early after the merger and after BK.

as to pensions, they are a liability on the books so funding them looks like good to investors.

Despite that some people thinking otherwise, I believe Parker IS doing a good job.

He just happens to be doing many of the same things that DL started several years ago.

Business strategies cannot be patented so if it works, AA should do them whether DL does or not.
 

Agree. He's on my ignore list again.

funny that you now want to ignore me after whipping up a campaign to run my "reputation score" as far into the red as puzzle.

tell you what, pal.

When you take leadership of a campaign to stop the red button pushers who have an urge to hit every post I make with multiple negative votes, then you might see me decide I don't need to comment as much.

You and others have the board you created.
 

 

[robbedagain]

E  I also have WT on my ignore list.   WeAAsles I agree bout that pension increase.  

 

[WeAAsles]

E  I also have WT on my ignore list.   WeAAsles I agree bout that pension increase.  

Robbed I tried to discover if maybe this person was misunderstood and decided to engage a conversation with him. A huge error in judgement on my part. When we began to not see eye to eye rather quickly he twisted every point with a counterpoint that completely ignored facts I was throwing at him. It degenerated even faster from there. At one point I attempted to commend him on a personal aspect of his life that was shared with me and he considered that an attack. It was plain nuts.

I absolutely understand why he has so many red marks against him. More than ANYONE on here. He has no credibility and continues to attempt to engage people and annoy them. He's a complete and total narcissist and attention seeker who for his own sake is probably better left ignored so maybe he can move on with his life and find some happiness.  

 

 

[WorldTraveler]

no, you didn't engage in a conversation.

You engaged in a full blown assault on my character in a pathetic attempt to try to prove your point.

And your lack of the very same self-control that you claim obviously doesn't include really putting me on ignore because you couldn't possibly be replying to the issues you are if you had me on ignore.

so much for worrying about credibility when you reference things while saying I have been ignored.

Doesn't really matter whether you want to ignore me or not.

You have continually opened business discussions including on this thread about AAL's stock price and then fail to be able to discuss the very basic data that you quoted. I didn't post that DL had a larger upside on its stock price than AAL; you posted that. remember?

specific to this discussion, AAL doesn't and won't have the upside that DAL has until AA starts making a number of the major changes to the way the business is oeprated that DL did first and Parker wisely is now doing.

Good for Parker. Glad DL could help provide the template.

 

[MetalMover]

no, you didn't engage in a conversation.

You engaged in a full blown assault on my character in a pathetic attempt to try to prove your point.

And your lack of the very same self-control that you claim obviously doesn't include really putting me on ignore because you couldn't possibly be replying to the issues you are if you had me on ignore.

so much for worrying about credibility when you reference things while saying I have been ignored.

Doesn't really matter whether you want to ignore me or not.

You have continually opened business discussions including on this thread about AAL's stock price and then fail to be able to discuss the very basic data that you quoted. I didn't post that DL had a larger upside on its stock price than AAL; you posted that. remember?

specific to this discussion, AAL doesn't and won't have the upside that DAL has until AA starts making a number of the major changes to the way the business is oeprated that DL did first and Parker wisely is now doing.

Good for Parker. Glad DL could help provide the template.

Once again, you have the uncontrollable need to defend the honor of DL at any at all costs......
This discussion is about AA stock NOT DL? Is it that hard for you to understand? SO what someone posts DL as part of the equation..Two wrongs don;t make a right. Try taking the high ground and NOT include DL in your replies.. Unless of course DL pays you to do so?