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Brian,All carriers benefited from low fuel prices. AA is no different. All carriers had revenue declines. AA is no different. There is no difference here. None. AAs revenue decline is inline with all other carriers.
Did it long ago and I must say it makes a huge difference not having to look at this constant Don'tExpectLuggageToArrive commercial. Now if everyone could stop commenting on his posts it would be like he is not here and he would eventually go away and haunt someone else's board (United?). Give it a try.Shafted said:On the count of 3 everyone put the troll known as WT on ignore!! Ready, 1,2,3....
It's a shame that he high jacks almost every thread and every poster in it!
Wonder who is passing out negative votes to the investors who decided that AAL stock is not worth near as much after its earnings announcement that it was before.Ouch! AAL down 7% today ($2.98)
After skimming through your manifesto, my take away is thisWorldTraveler said:if AA were at the same point in BK and operating their business comparable to DL, they would have accounted for income taxes AND paid profit sharing, both of which DL and WN are doing NOW.DL accounted for $881 million in income taxes and over $400 million in profit sharing, just for this quarter alone.AA also continues to prominently highlight its Venezuela currency holdings which will have to be devalued or written off unless Venezuela by some completely unknown stroke all of a sudden comes upon billions of dollars that they can use to pay off foreign companies; given that AA doesn't even accept Venezuela's currency for payment now, there is no reason why Venezuela should do anything for AA. $600 million for AA is as much as DL paid in its large settlement of hedge losses.For industry comparison, DL and WN are simply in a completely different set of revenue and cost comparison.... both generated over 20% operating margins, accounted for (DL) or paid (WN) income taxes, and also paid profit sharing.on an apples to apples comparison if both carriers both paid taxes and profit sharing, DL would have outperformed AA just as WN does on a margin basis.Further, DL both for the quarter and year to date is now within a couple percent of AA in terms of size, having easily passed UA.AA's strategy amidst a shrinking revenue environment ACROSS ITS NETWORK is to use its fuel cost advantage to shrink revenues, the same strategy UA used.IN contrast, DL and WN BOTH grew revenues - DL by 1%, WN by 2% despite the fact that WN doesn't even fly to Europe, Asia, or S. America where the strong dollar has had an enormous impact on US carrier profitability in those regions.DL or WN didn't pick a number off of an excel spreadsheet and said these will be their margins of one type or another... no one expects AA or any company would do anything other than take advantage of every opportunity, deal with every challenge, and get the highest margin they can wherever they can.so, no, AA and DL aren't anywhere close to being at the same place.but more significantly, to say so is completely opposite of what AA's own execs said in acknowledging that they are behind their peers including DL who merged years ago. (those who are so afraid of hearing comparisons should note that AA exes themselves make those comparisons)No one has said a thing about doom and gloom for AA. If it makes you feel better thinking that I or anyone else said, go for it. It is just not any more reality than to believe that AA and DL make comparable profits.The future is exciting for AA. No one said otherwise.But the competition is also moving forward, AA continues to face a disproportionately large amount of competition in its key markets, and Wall Street yesterday clearly recognized that while the future may be bright, AA is not in the same position as other competitors who saw completely different stock movements the day of their earnings announcements.
swamt said:I have always said that AA will surpass Delta 's profits when AA is givin the same time frame out of BK, and they just did it. CONGRATS to all the AA employees for a very good job!!! Delta reported 1B for the 2Q and AA reports 1.7B for 2Q---AND--- It's earlier than predicted, fantastic job AA employees, keep up the great work...