Analysts - AA to benefit most for oil drop, DL least

I just don't understand the fight...It shouldn't be a jump in pay or profit sharing. The real fight should be that profit sharing is a bonus, above and beyond anything you make hourly. If you're gonna spend the time and effort to argue either or, why not have our elected leaders spend that time telling Parker and crew that Profit sharing should not be negotiable. I truly don't get both the argument and the unions lack of fight that our efforts resulted in excellent profits therefore let us share the joy just like management does!!
 
precisely.... and your logic is exactly why AA employees will not match industry leading pay because DL employee s have not had to trade pay in order to participate in the company's success - exactly the same formula that WN has used for decades.
 
It's about whatever himself wants to bloviate about in his quest to "prove" that DL is the best airline in the world and like the Virgin Mary--without sin or error in its operation. Anything DL does is strategic.  Even if when another airline does the same thing (especially AA), it's proof that they (the other airline) should never have done such a thing.  Put him on ignore.  It reduces the amount you have to read by about 75%.  Oh, and please do not respond to his posts unless you agree with him 100%.  He is not interested in having a discussion.  He is interested only in appearing to be right on any subject from DL profits to the cost of a dozen eggs in Eufaula, Al.  He will have the last word on every subject.  Even if it means repeating the same thing over and over.  He is a legend in his own mind.
 
The day is coming when they can just change the name from airlineforums.com to WTOpinions.com because the rest of us will have gone elsewhere.  I'm looking right now.  This website used to have 100's of posters from just about every airline in the U.S.  There don't appear to be more than 20-25 regular posters on here now.
 
I do have him on ignore. I am only graced to see his garbage when someone else quotes him. Bob Owens just quoted his latest gem on another thread.

On topic, I see the oil price drop playing a huge part in propelling AA advantage in its operational costs over other legacy carriers with omnidirectional hubs.
 
glenn  I agree with you      I think one more advantage AA has  is that the fleet is a lot younger than DL and I believe that plays  quite a bit of a huge role?
 
I do have him on ignore. I am only graced to see his garbage when someone else quotes him. Bob Owens just quoted his latest gem on another thread.

On topic, I see the oil price drop playing a huge part in propelling AA advantage in its operational costs over other legacy carriers with omnidirectional hubs.
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except you simplistically seem to ignore the fact that those new aircraft cost money to acquire - lots of it. part of the advantage of new aircraft is reduced fuel burn. If fuel costs half of what it does a year ago, AA gains a whole lot less advantage but still ends up spending the same amount on capital expenses.

Meanwhile, every carrier will benefit from reduced fuel costs; some carriers will have hedging losses but no one really has any idea how large that amount will be or for how long it will last.

Further, reduced costs in any category should help increase profitability which should benefit employees that have profit sharing. If part of that fuel cost savings is eaten up in other areas such as currency writeoffs or increased debt service, then the cost reduction could end up being a lot less than a lot of people seem to think.

and since employees really do have a big influence in driving customer revenue - whether Parker believes it or not - happier employees could drive increased revenues.
 
jimntx said:
It's about whatever himself wants to bloviate about in his quest to "prove" that DL is the best airline in the world and like the Virgin Mary--without sin or error in its operation. Anything DL does is strategic.  Even if when another airline does the same thing (especially AA), it's proof that they (the other airline) should never have done such a thing.  Put him on ignore.  It reduces the amount you have to read by about 75%.  Oh, and please do not respond to his posts unless you agree with him 100%.  He is not interested in having a discussion.  He is interested only in appearing to be right on any subject from DL profits to the cost of a dozen eggs in Eufaula, Al.  He will have the last word on every subject.  Even if it means repeating the same thing over and over.  He is a legend in his own mind.
 
The day is coming when they can just change the name from airlineforums.com to WTOpinions.com because the rest of us will have gone elsewhere.  I'm looking right now.  This website used to have 100's of posters from just about every airline in the U.S.  There don't appear to be more than 20-25 regular posters on here now.
Click to expand...
Sad but true...
 
It's about whatever himself wants to bloviate about in his quest to "prove" that DL is the best airline in the world and like the Virgin Mary--without sin or error in its operation. Anything DL does is strategic.  Even if when another airline does the same thing (especially AA), it's proof that they (the other airline) should never have done such a thing.  Put him on ignore.  It reduces the amount you have to read by about 75%.  Oh, and please do not respond to his posts unless you agree with him 100%.  He is not interested in having a discussion.  He is interested only in appearing to be right on any subject from DL profits to the cost of a dozen eggs in Eufaula, Al.  He will have the last word on every subject.  Even if it means repeating the same thing over and over.  He is a legend in his own mind.
 
The day is coming when they can just change the name from airlineforums.com to WTOpinions.com because the rest of us will have gone elsewhere.  I'm looking right now.  This website used to have 100's of posters from just about every airline in the U.S.  There don't appear to be more than 20-25 regular posters on here now.
Click to expand...
the only thing that is sad is that one person after another wants to talk about one topic after another but doesn't have the knowledge to do it so instead they make up all kinds of, shall we say, animal waste by products, instead of deal with the truth.

you are entitled to your opinion and I have never told you not to post it. never said that to anyone else either.

there are no restrictions on the capacity of this board to handle far more posts than it does right now.

the only restriction is the ability of people to intelligently talk about the topics they bring up to discuss.

Specific to this topic, we've gone for how many pages about a subject that we really have no more information than what was revealed in the 3rd quarter analyst earnings calls.

DL and every other airline that has hedges said they would take hedge losses based on the then-current price of fuel.

Industry analysts understand hedge losses because they have seen it before. They don't understand currency losses or currency impairments because it is generally more complicated and less well disclosed.

DL and UA have currency hedges in place which have helped minimize their exposure to currency fluctuations.

For every article that you want to post about fuel hedge losses, I'll put one out about currency hedges and how effective they have been for DL and UA and the fact that AA has also chosen to not to use them and faces hundreds of millions if not a billion dollars in currency losses and impairments.

if you would like to sum up the discussion regarding the topic in any other factually based way, feel free to do so - and then we can ask that this thread get locked along with anything else that has to do with any kind of business topic, esp. one that might show facts that you or others don't want to see.

and then you can have this board all to yourself and other labor malcontents so you can criticize your coworkers who don't think the way you do.

forgive me for diversifying away from the typical "my stupid coworker and mgmt." threads that are the staple of this forum and of which you and Kevin enjoy being at centerstage of the circus.
 
think he already has it....  reporting on here about how DL does everything so good and no other airline can do no right....
 
nobody said no one else can do right except DL.

in this conversation about fuel hedge losses and the clear effort to highlight DL's fuel hedge losses while mentioning no one else despite the fact that other carriers except for AA have fuel hedges as well, what is also lost is currency losses.

When the dust is finally settled and it likely will be by the time 4th quarter financials are reported, it will very likely be clear the sum total of hedge and currency losses.

AA might choose to not take a writedown on its Venezuela cash but it should be clear that falling fuel prices provide even less incentive for Venezuela to allow any more money to leave the country than it absolutely has to.

Further all of the glee by some regarding fuel hedge losses by some carriers including DL miss the fact that DL has saved hundreds of millions of dollars in fuel costs relative to not only other carriers that have hedged but also AA.

You can't call hedging an invalid strategy based solely on the hedge losses but instead must include hedge and fuel cost gains before that.

Whether by the end of January or even later, I still believe that the chances are very high that the net total of hedge losses including previous gains for most if not all of the industry will be far smaller than the currency losses that AA will suffer.

as with everything we discuss, I invite verification when full data is available.

AA just reported its Nov traffic and there are a couple of interesting points.

AA's TATL and Latin systems both saw fairly significant drops in traffic - almost 8% on TATL and 3.6% to Latin America. Given that AA had already pulled down TATL capacity by 2.7%, these results argue that AA's TATL network is not producing the traffic at current fare levels as the combined AA/US system did a year ago - likely the result of less fare discounting on the original US TATL system.

further, AA says its RASM is expected to be in the range of down 1% to up 1% which says revenue weakness will likely offset whatever fuel advantage AA gains. AA still expects an operating margin of 10-12%.
http://finance.yahoo.com/news/american-airlines-group-reports-november-130000786.html
 
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Uh oh - more positive outlook for AA.  Time for a diatribe.
 
American Is Rated Top 2015 Airline Pick by JPMorgan as Oil Prices Fall - TheStreet.com
 
"In addition, because American does not hedge fuel it benefits more from falling fuel prices than carriers that do hedge."
 
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