AA's currency impairments

[WorldTraveler]

AA hasn't accounted for its currency impairments so what they made last quarter is irrelevant.

AA has a much bigger amount of money AT RISK based on Venezuela.

AA's RASM decline in Latin America - its largest region is far larger than what any other carrier has reported in any global region.

Latin America has been AA's cash cow.

Throw in growing competition in the US and Latin America on top of a currency crisis in key countries and Latin America could quickly become a brick in AA's backpack.

AA made more money in large part because it doesn't have to pay taxes or share its earnings with its employees.

let me know how long AA employees will celebrate the company's success when they get no part of it.

AA is the only large US airline that had no significant profit sharing with its employees.

of course the executives are getting and will get hefty bonuses - just not the rank and file workers.

 

[jcw]

Bless your heart you can help yourself

Go on DL site and post all the negatives from DL's filing

It's like DL's cash cow Asia sucking wind

Can you say Asia performance is down and DL has suspended flights to Asia

Tough one for you

Hail to DL Hail to DL Hail to DL

 

[WorldTraveler]

except DL is still reporting profits to Asia.

AA's Latin America operation became negative in the 2nd quarter, the most recent available.

 

[jcw]

Let's see AA profit was higher than DL's meaning AA has more resiliency in its network to produce profits while DL drives down operating margin by 47%

Tough one for you

 

[WorldTraveler]

AA's RASM was lower than DL's, so no resiliency there
 
 AA has lower employee salary and benefit expenses per employee
 
nothing more. 

 

[jcw]

Once again keep grasping for straws AA outperformed DL

DL managed to reduce operating margin by 47% with its brilliant moves

 

[WorldTraveler]

and yet AA's network wasn't quite as resilient as you want to think
 
they just paid their employees less. 

 

[jcw]

Sorry dude AA is out managing DL

You might want to take some more meds

 

[WorldTraveler]

"My lower paycheck helps AA win"

"My lower paycheck helps AA win"

"My lower paycheck helps AA win"

"My lower paycheck helps AA win"

"My lower paycheck helps AA win"

 

[jcw]

Struggling to come up with original thought so now we have practicing copy and paste which you just learned - your making progress

It's funny you sound like a two year old repeating this on every thread

All,

Congratulate WT on mastering copy paste


WT,

GREAT JOB on copy paste you have come along way

 

[WorldTraveler]

meanwhile, AA still has at least $700 million in revenues on its books that currently cannot be repatriated and which has helped to depress its RASM in Latin America by 11.7%, the largest RASM decline by any carrier in any region.

good luck with explaining where all that revenue has gone and will go.

 

[jcw]

Meanwhile just about every company in America has profits trapped overseas - knowing your the expert in everything - I guess your unaware of the US tax system and bringing profits home is very expensive - so one countries trapped revenue is not a killer

But once again even with that minor head wind AA made more money than DL

Every little item you find combing through AA's report will not over come the FACT that AA made more money

That's why no one on this board is spending ever waking minute looking at DL report to find all the negatives about DL to post them on the DL board - it's about approach and the constant grinding the axe for AA comes through - it's clear something is wrong with ones approach

 

[AdAstraPerAspera]

I wonder how that JV with VS is working out, compared to say, our one with BA

 

[WorldTraveler]

we're talking about taxes for repatriating profits.

we're talking about that there are currency restrictions in certain countries that make it IMPOSSIBLE to repatriate revenues, regardless of the tax.

and again DL has currency hedges that have limited the currency losses it is suffering in Japan. AA has no currency hedges.

BTW, DL and UA also serve Venezuela and Argentina. The risk to AA is far larger solely because AA is the largest carrier in those markets to/from the US.

the simple fact whether you want to accept it or not is that AA's potential currency impairments are far larger than fuel hedge losses.

as for LHR, DOT data eventually will provide indications of how average fares compare between DL/VS and AA/BA but that is as far as anyone will get in being able to compare performance between the two sets of partners at a market level.

 

[jcw]

Yes but you fail to forget Venezuela is one country and is not material in the grad scheme of things do grinding on about this minor issue continues to point out your lack of perspective

AA still made more money no matter how many minor issues you surface

You can grind an axe on this issue it's still not material it's not going to cause AA to implode - AA had adjusted its approach to the country and doing just fine

Must be a tough morning