Financial Analysis

[atlmd80]

While this topic was US Airways based, it was essentially captured and turned into an analysis on United's operations.

There's a lot of good info here on United, and I'd actually like to keep this one going, but I am going to move it to the United forum.

Hopefully, there were be people there to post follow-ups.

Sorry, 320, but this one was successfully hijacked....

Oh, people will continue to post. Unfortunately, it will consist of personal attacks on some posters that critique UAL (like a certain high school student and captain from another airline). Or, if we are lucky, it will go in the direction of national politics. How the Democrats/Republicans will hurt/support UAL legislation. Anything but the business model or future of the company.

 

[BillLumbergh]

Oh, people will continue to post. Unfortunately, it will consist of personal attacks on some posters that critique UAL (like a certain high school student and captain from another airline).

Oh, that will NOT be happening.

 

[Busdrvr]

Credibility is key and in light of UAL's FEB report that indicated a POSITIVE cash flow of 7 mil per day, the recent rants and "analysis" that appear to be off by 15 MILLION A DAY need to be highlighted so that future "doom and gloom" posts by "outsiders" can be taken in context


USA320PILOT said


"On February 26 United Airlines reported an operating loss of $191 million for the month of January. The airline said its net loss for the month, including $26 million in reorganization expenses, was $252 million. That’s a daily operating cash burn rate of $6.1 million and a net cash burn rate of $8.1 million per day."

 

[iflyjetz]

Busdrvr, welcome back! Where ya been? We didn't mess up your Pakistani dips again, did we? (That's an inside joke between Busdrvr & myself, for those that don't get it. BTW, I'm leaving the southern Illinois cornfields & switching IMA positions to Washington DC).

As for USA320Pilot's credibility, I think that he did major damage to that long ago. I now consider him & his 'sources' to be a great contrarian indicator.
However, I do worry about UAL's long term future. Let's hope that Tilton can get the good ship United off of Holly's Titanic Watch. (Speaking of Holly, didn't she say that UAL would most likely miss Feb dip covenants? Why, yes, she did. Wrong again, Holly).

 

[737nCH11]

While I don't believe that we are "on a glidepath to oblivion" as a certain U first officer likes to say, I do think that remaining in CH11 is certainly costing us money and credibility. We are paying out the nose for fuel, as we aren't able to hedge in bk. We are also racking up huge reorganization expenses.

On the credibility front, each time we delay our exit it makes us look unstable. I realize that with the ATSB decision still pending that senior management has to be conservative and tight-lipped, but when the judge starts granting extensions after Tilton predicted we would be out of BK by spring it brings the (IMO) uninformed analysts (and Chipper) out of the woodwork which, in turn, instills doubt in the minds of our customers. A little spin action from WHQ would be nice.

With that said, I remain ever more confident that UAL will emerge from BK as a strong competitor. Load factors are high, employee morale, from what I can see, is high, and I believe CEO Tilton can return us to our rightful position as an industry leader.

Keep the faith.

737

 

[avek00]

Load factors are high, employee morale, from what I can see, is high, and I believe CEO Tilton can return us to our rightful position as an industry leader.

Load factors and employee morale may be high, but the losses are high too, and until the latter comes down, United isn't moving forward anytime soon.

 

[Busdrvr]

Hmmm, Poly Sci major right? Not much in way of finance or econ right?....

 

[funguy2]

I believe the advances is cash receipts for February may be indicative of bookings for March/April (because UAL takes the customer's cash in advance of providing the service). Therefore, we may see operating profit (or break-even) for March and April. However, this tends to turn into a net loss when the bankruptcy costs are added in (which is typical).