AMR Q2 loss $286mil
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Hopeful
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- Dec 21, 2002
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Actions speak louder than words.
Frank Szabo
Veteran
An old Irish saying is, " 'thank you' doesn't pay the fiddler".
Cha dèan ‘Tapadh leis an fhìdhlear’ am fìdhlear a phàigheadh.
Considering the continued tone of the supposed "negotiations", I believe we, to a man, take his "thanks" as another slap in the face.
Now - be a good little boy and Bugger Off.
Sure but at the table, where it really counts he is saying F. U.
Its like a guy who tells the world he loves his wife then goes home and beats her.
AANOTOK
Veteran
- Oct 10, 2009
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Nope, Josh, just time for you to start paying what it really cost to fly you around the world.
Oh, and since you speak for Jacob, tell him what I said!
WorldTraveler
Corn Field
- Dec 5, 2003
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a few notes from the earnings release...
AMR opened the possibility of capacity reductions later in the year... which is a good thing since RASM was down markedly in the Pacific and Atlantic on significant capacity increases. Latin America for AA showed a very healthy double digit RASM increase but on flat capacity. Domestic was up about 5% on slightly reduced capacity. AA's efforts to add capacity across the Atlantic and Pacific are not financially healthy.
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AMR has added about 2000 employees in the past year... half at mainline. Thus their non-fuel labor costs went up faster than they have in the past several quarters.
AMR has taken on about $1B more debt than it had this time last year in order to fund operational losses even though its cash on hand remains stable.
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Fuel now accounts for 36% of AMRs costs.... although they are well hedged, they still expect they will see no meaningful relief in fuel prices for the rest of the year.
AMR opened the possibility of capacity reductions later in the year... which is a good thing since RASM was down markedly in the Pacific and Atlantic on significant capacity increases. Latin America for AA showed a very healthy double digit RASM increase but on flat capacity. Domestic was up about 5% on slightly reduced capacity. AA's efforts to add capacity across the Atlantic and Pacific are not financially healthy.
.
AMR has added about 2000 employees in the past year... half at mainline. Thus their non-fuel labor costs went up faster than they have in the past several quarters.
AMR has taken on about $1B more debt than it had this time last year in order to fund operational losses even though its cash on hand remains stable.
.
Fuel now accounts for 36% of AMRs costs.... although they are well hedged, they still expect they will see no meaningful relief in fuel prices for the rest of the year.
eolesen
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- Jul 23, 2003
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Count of employees I saw was closer to 1200 employees. ~ 250 of that is flight attendants (if not more) including the Mandarin speakers. I'm guessing they also had to add some employees internationally to support new flying. The balance must be the 200 supervisors hired just at JFK according to Bob, and personal trainers & drivers for every vice president and managing director....
In seriousness, I think AA realized they let attrition go too far in 2010 and are now just catching up. With record high load factors, operating on a shoestring at the airports hasn't helped things and it shows with AA's DOT numbers for baggage.
DUB Res is closing, but unless that's been offloaded to BA or an outsourcer like Carlson, there may be an offset at the SRO or another call center to manage all the German/Italian/French calls that were going thru DUB...
I'm less worried right now about borrowing money to keep the cash balance up. If fuel spikes again, they need a buffer.
In seriousness, I think AA realized they let attrition go too far in 2010 and are now just catching up. With record high load factors, operating on a shoestring at the airports hasn't helped things and it shows with AA's DOT numbers for baggage.
DUB Res is closing, but unless that's been offloaded to BA or an outsourcer like Carlson, there may be an offset at the SRO or another call center to manage all the German/Italian/French calls that were going thru DUB...
I'm less worried right now about borrowing money to keep the cash balance up. If fuel spikes again, they need a buffer.
Frank Szabo
Veteran
Wake up and smell the coffee, turkey - people have been hired at the behest of the TWU to provide them with more dues income. There will be a layoff but nowhere near the number that actually would have to go to the street, assuming the company had any intent of running American as a real business.
WorldTraveler
Corn Field
- Dec 5, 2003
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yes, AA probably like alot of airlines allowed staffing to slip too much but they probably also know they have to hire to offset attrition. Given AA has plans to cut less capacity, they cannot afford to allow a bunch of employees retire and then wake up understaffed - esp. if the new emplotyees are less experienced. Insomuch as there are cuts within the areas represented by the TWU, then they will get their fare share of new members - at least until the attrition cranks up.
If BK really does apprear to be likely, there will be a mad rush for the exits - that has been the case at other airlines.
United claims to have spend $1bil+ more for fuel in the past year, dropped $145mil on United/Cont integration, $100mil on revenue lost from Japan tragedy and still managed a $538mil profit. AMR must be at a greater disadvantage than than they thought.
WorldTraveler
Corn Field
- Dec 5, 2003
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AMR's non-fuel mainline CASM excluding special items was 8.92 while it was 8.17 for UA. UA also did a better job based on RASM change at matching capacity to what the market could bear - but that is precisely one of the benefits that airlines have said would come from mergers; when you are large enough, you can cut and still not affect your network footprint.
strikeforce
Veteran
- Jan 18, 2011
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Gee.....use the credit cards to pay your bills and keep the cash in the bank. And, that's a good thing????
Is this concept taught in Finance 101???? No wonder corporate america is in deep sh%t!
Frank Szabo
Veteran
Hey - it's how his Imperial majesty O'Bummer wants to do things (except there's no cash in the bank) - why not??
strikeforce
Veteran
- Jan 18, 2011
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Give it TIME, my boy.......AA & TWA merger looked rosy at the beginning, too.
The only thing that airlines get with mergers is......HEADACHES
You, Josh and Eric appear to be experts on this forum with fancy acronyms, numbers, and solutions.......Well, did it ever appear to you that maybe UA's management is MUCH better at running an airline than Arpey & co.???????
- Aug 20, 2002
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Its not a bank, its Obama's stash..........
