American Airlines Group Reports Highest Quarterly Profit In Company History

[Eagle]

That's enough. From all of you.

Back on topic, please.

 

[FrugalFlyerv2.0]

congrats to AA mgmt. for the decision they made and good luck as that fuel cost advantage ends and AA has to compete with other carriers who will be paying the same price for fuel but generating far higher revenues. Since AA employees don't influence either the fuel or revenue environment according to their CEO and won't share in the profits one way or the other, it isn't a discussion that non-mgmt. AA employees should worry about.

 
 

 
 
http://www.wsj.com/articles/oil-weak-after-overnight-losses-oversupply-weighs-1437617638
Prices had settled below the key $50-a-barrel mark for the first time since early April on Wednesday, and they kept falling for most of Thursday. An unexpected increase in U.S. crude inventories, announced earlier this week, combined with high production already coming from the Organization of the Petroleum Exporting Countries, is raising concerns that the market is settling into a long period of oversupply.
“We expect the market to remain heavily oversupplied for the next year, keeping prices subdued,” said Thomas Pugh, commodities analyst at Capital Economics.

 

[robbedagain]

sweet!!!!!!   Great job to all the FRONTLINE folks at the new AA  

 

[WorldTraveler]

there is no falsehood. If you would actually step back from posting poster-sized defamations and actually READ financial reports from multiple carriers, you would see that AA's fuel costs were below other carriers.

That IS ENDING.

AA will pay the same fuel prices as other carriers.

it doesn't matter whether those are low or high fuel prices. AA's fuel price advantage is ending.

At that point, revenues will determine success in the industry. AA's revenue performance for this quarter even compared to AA in the past - not even comparing to other carriers THIS QUARTER - was just plain aweful.

the question again is when AA last reported a double digit RASM decline across its entire int'l system and a worse than 5% RASM decline on its domestic system.

sweet!!!!!! Great job to all the FRONTLINE folks at the new AA

robbed,
let me congratulate you. I am certain you have done much to make your new employer AA a success.

Enjoy!

 

[CMH_GSE]

there is no falsehood. If you would actually step back from posting poster-sized defamations and actually READ financial reports from multiple carriers, you would see that AA's fuel costs were below other carriers.That IS ENDING.AA will pay the same fuel prices as other carriers.it doesn't matter whether those are low or high fuel prices. AA's fuel price advantage is ending.

What isn't ending is AA's fuel efficiency advantage.
With the youngest, most efficient fleet in the industry on order and being put in place, AA will enjoy using less fuel per plane than rivals.

All that said, fuel costs are now lower, and will remain lower than the $110, $120 per barrel that sent all the airlines back to the drawing board to find new ways to be profitable.

This is nothing but good news for airline workers in general, finally.

 

[Monkee]

AA's profitability was driven by lower fuel costs. Period.

its revenue production was far below average for the industry.

Competition as I expected is full focused on AA's network and its RASM across its system showed it.

And not only is AA's size advantage as a result of the merger nearly gone but the difference in profitability is far lower and has likely come to an end now that fuel prices are virtually the same for all large carriers.

AA's operating margin was significantly below DL and WN but above UA.

 
 
You have a knack for adding stupid commentary where it is not needed nor appreciated.  Go haunt somewhere else, your schtick got old a long time ago.

 

[AANOTOK]

WT...you may or may not post facts (been caught doing both) but what is a given is your joy and anger in many of your posts. AA does good, the anger is evident. AA does bad, your joy is beaming. Today, you actually posted with the combo...record profits didn't sit well with you...(in your eyes) it's the end of the road for AA because they fell behind the almighty Delta and others (except for UAL) in other metrics. JOY JOY JOY. Sir, I knew some kids just like you in school...they are still that way today!

 

[WorldTraveler]

When people here can accept that good news always comes with bad news, then we can all get along.


I am not mad about anything but it clearly makes some people feel good to think I have the problem when it is they that cannot accept the facts.

AA's record profits were driven entirely by a fuel cost advantage that came in the midst of one of the worst revenue performances in AA's history and that is without a comparison to other

 

What isn't ending is AA's fuel efficiency advantage.
With the youngest, most efficient fleet in the industry on order and being put in place, AA will enjoy using less fuel per plane that rivals.

All that said, fuel costs are now lower, and will remain lower than the $110, $120 per barrel that sent all the airlines back to the drawing board to find new ways to be profitable.

This is nothing but good news for airline workers in general, finally.

Yes, it is good news but it is only good news if they either get higher salaries because of it or they get profit sharing.

there are multiple labor groups at multiple airlines that have said that their carrier's financial success is justification for labor to get higher pay raises. Not a single airline has been swayed by that argument and not a single mediator or negotiator has succeeded in obtaining higher wage rates based on the financial success of the companies.

further, since AA employees don't receive profit sharing while their peers at other big 4 carriers do, it might be a source of pride for AA to be profitable but it means nothing for AA employees while record profits mean record profit sharing at other airlines.

fuel prices may or may not stay low. But AA doesn't have an advantage any longer. When revenue metrics are what will differentiate financial performance among airlines along with non-fuel costs, then AA has an enormous burden that other carriers do not have because of the intense competition and declines in revenue that are happening not only in AA's key markets but also in markets like Asia where AA was hoping to be able to grow. When you consider that additional capacity has been added to LAX-PVG, one of the markets where AA was starting to see revenue improvements and AA has to start LAX-HND in the winter, Asia is just as big of a revenue challenge for AA as its core regions including Latin America and DFW where competition has significantly depressed yields - and that reality is evident in AA's financial report today.

 

[autofixer]

Record profits and yet the synergies of the merger are in the early beginning stages of implementation.  I was in charm school last week in DFW and management continually mentioned we are 5 years behind DAL;however, they said: "AAL is far ahead of where DAL-NWA was at this point of their merger."  

 

[Tater Salad]

Until the clowns in the front office start recognizing their employees contributions to the company's profits, whether it be profit sharing or competitive wages and benefits. I just don't give a flying f^#% how much money AA makes.

 

[Kev3188]

This is nothing but good news for airline workers in general, finally.

Exactly! Like I've said before, after the last 10-15 years, we deserve it.

Record profits and yet the synergies of the merger are in the early beginning stages of implementation.  I was in charm school last week in DFW and management continually mentioned we are 5 years behind DAL;however, they said: "AAL is far ahead of where DAL-NWA was at this point of their merger."

+1

Anyone counting AA out does so at their own peril...

 

[WorldTraveler]

Record profits and yet the synergies of the merger are in the early beginning stages of implementation.  I was in charm school last week in DFW and management continually mentioned we are 5 years behind DAL;however, they said: "AAL is far ahead of where DAL-NWA was at this point of their merger."

totally accurate statement and exactly what I have said.

see, AA mgmt. does know where they are... it is people here who try to defend something which even their leaders don't say.

and I have repeatedly stated because it is true that other carriers will continue to press ahead with strategic initiatives that are ahead of where AA is now.

Those carriers that completed their mergers are still ahead of AA.

the merger is going swimmningly well. AA is profitable due in large part to fuel costs right now.

AA will keep moving forward. I have never argued otherwise.

but the WHOLE PACK keeps moving forward and other carriers are building on what they gained 5 years ago.

 

[AANOTOK]

You have never said AA has not fully recognized the benefits of the synergies from the merger. You have continually stated that these synergies will not be enough to overcome the pitfalls of the merger and each passing day AA falls further and further behind the other legacies (especially Delta) in  every important metrics. You have stated numerous times that the AA/US merger has too many obstacles to overcome to compete with Delta.
 
WT...you definitely are the "SpinMaster"

 

[WorldTraveler]

You have interpreted a number of things including most of what you just posted above.

plz provide proof to back up what you claim I said.

plz also provide proof where ANYONE has said that AA has received all of the benefits (fully recognized) of the merger. They spent over $300 in merger integration in the quarter so they aren't convinced it is time to stop spending money on it yet.

AA will compete and reap benefits from the merger - both what has happened and more will come. Other carriers will continue to refine and enhance their strategies. that reality is a byproduct of AA's decision to not file and merge when other carriers did those things.

AA does have more competition in its top markets. that is also reality and it was proven today and I predicted it years ago.

continuing to try to blame me because I highlighted years ago financial issues that are taking place today is the problem.

AA got a huge boost in profitability because of low fuel prices and that has allowed it to weather the increased competition and merger issues.

as of this hour, airline stocks are generally down across the board although UAL is up.

 

[AANOTOK]

A. I would never take the time to go through every single one of your lectures, manifesto's, Delta/WT Ten Commandments etc...to prove to YOU that you said or worse case scenario insinuated what I accused you of.
 
B. A is not necessary because it is a known what you have said about The Great Delta where the sky is the limit, and The Broken Down AA that is in deep trouble at every corner any way you look at it.
 
And you are right WT, a lot of things you say can be interpreted, and correctly I might add...