USAirways reports on fuel hedges and cash.
http://biz.yahoo.com/ap/060707/us_airways_hedging.html?.v=1
http://biz.yahoo.com/ap/060707/us_airways_hedging.html?.v=1
Fuel Hedges and Cash
- Thread starter JayBrian
- Start date
EyeInTheSky
Veteran
This ought to get some attention:
"...After closing the first quarter with $2.6 billion, its cash holdings increased to $2.9 billion following an April debt refinancing. The carrier expects to end the second quarter with about $3.15 billion in total cash..."
Interesting...
Eye
ClueByFour
Veteran
- Aug 20, 2002
- 3,566
- 37
Somebody at US is playing extremely fast and loose with the balance sheet. They are, in essence, counting receivables, M&S on hand, and prepaid expense as "cash."
In reality, one should look at the combination of cash and investments, and break out restricted cash from that. Parker is trying to make the company look better than it actually does. By this logic, AA has 6.7 billion in cash and even UA has 4.2 billion.
In reality (as of the last reports), US had around 1.6 billion in cash, AA had 4.7 billion (500 restricted) and UA 2.5 billion.
In reality, one should look at the combination of cash and investments, and break out restricted cash from that. Parker is trying to make the company look better than it actually does. By this logic, AA has 6.7 billion in cash and even UA has 4.2 billion.
In reality (as of the last reports), US had around 1.6 billion in cash, AA had 4.7 billion (500 restricted) and UA 2.5 billion.
USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
Eye:
I agree. By the way...
On June 21 USA320Pilot said: “Parker recently indicated US Airways’ cash position is approaching $3 billion and coupled with the company’s current stock price/ability to obtain further capital the Tempe-based airline has the ability to finance a large corporate transaction.â€
Click here for the comment.
On June 21 CluebyFour said: “Parker lied. Or is being deliberately obtuse with the numbers.â€
Click here for the comment.
On June 30 USA320Pilot said: “US Airways is approaching $3 billion in cash, it's stock price is attractive for M&A activity, and the company has access to loans.â€
Click here for the comment.
On June 30 Whlinder said: “It is amazing how many jobs you have. Pilot, revenue management analyst, financial analyst, strategic planner, and now CFO! Clue by Four questioned the $3 billion in cash in another thread. I would like to know where US Airways has publically stated this cash balance.
Click here for the comment.
On June 30 USA320Pilot said: “Doug Parker has made the comment on the cash position in an employee webcast on theHub.â€
Click here for the comment.
On June 30 Whlinder said: “Ok, I'll take you at your word and wait for this to become public knowledge.â€
Click here for the comment.
US Airways said in a government filing that it expects to end the second quarter with about $3.15 billion in total cash.
Click here for the article.
USA320Pilot asks: How can ClueByFour be so wrong again?
Best regards,
USA320Pilot
I agree. By the way...
On June 21 USA320Pilot said: “Parker recently indicated US Airways’ cash position is approaching $3 billion and coupled with the company’s current stock price/ability to obtain further capital the Tempe-based airline has the ability to finance a large corporate transaction.â€
Click here for the comment.
On June 21 CluebyFour said: “Parker lied. Or is being deliberately obtuse with the numbers.â€
Click here for the comment.
On June 30 USA320Pilot said: “US Airways is approaching $3 billion in cash, it's stock price is attractive for M&A activity, and the company has access to loans.â€
Click here for the comment.
On June 30 Whlinder said: “It is amazing how many jobs you have. Pilot, revenue management analyst, financial analyst, strategic planner, and now CFO! Clue by Four questioned the $3 billion in cash in another thread. I would like to know where US Airways has publically stated this cash balance.
Click here for the comment.
On June 30 USA320Pilot said: “Doug Parker has made the comment on the cash position in an employee webcast on theHub.â€
Click here for the comment.
On June 30 Whlinder said: “Ok, I'll take you at your word and wait for this to become public knowledge.â€
Click here for the comment.
US Airways said in a government filing that it expects to end the second quarter with about $3.15 billion in total cash.
Click here for the article.
USA320Pilot asks: How can ClueByFour be so wrong again?
Best regards,
USA320Pilot
ClueByFour
Veteran
- Aug 20, 2002
- 3,566
- 37
I say this in the kindest way possible:
I hope you don't do your taxes the way you represent the "cash" balance of your employer. Because if you do, I will be the first in line to buy a (presumably) nice home in southern Butler when the IRS repos and subsequently auctions the joint.
Provide a link to a balance sheet filed by LCC with the IRS that indicates the cash amounts in question, or retract your patently false statements.
Cite it or retract. Your routine of playing fast and loose with the facts is old.
Speaking of which--still awaiting your responses to http://www.usaviation.com/forums/index.php...9575&st=40# Since you excel in one-hit propoganda (most of which, like the "cash" situation, is factually incorrect and unsupported), I figure it's only fair to remind you of the very concrete things you fail to address.
Tbhanks.
Dog Wonder
Veteran
Can i have some of that cash? Or is it all spoken for?
I know where a nice photo of that place from 150 miles up is.....
EricLv2Fish
Veteran
- Aug 25, 2005
- 1,171
- 5
The government backed loan was paid in full by using another less restrictive loan to pay the other one off. Not sure how much is left. Uncle Sam made out like a bandit on the loan with a ton of LCC stock which I believe they have already sold at a large profit.
You are the king of selective quoting. Anyway, congratulations on relaying information from an employee webcast/memo/whatever to this board.
I concur with Clue's analysis of US Airways' real cash on hand. But hey, if taking an "optimistic" view of the numbers makes you feel good, go right ahead.
What are the odds that will be your only post on this thread?
I'm not sure anybody is playing fast and loose with anything. The yahoo story very clearly states that in the SEC filing, the 3 billion + figure was total cash.
You posts are generally informative, but you seem to have an almost obsessive need to refute any kind of positive news from USAirways. If the captain is severely slanted to posting only news and opinions that are favorable to the company, you have become the opposite, in my opinion.
Smartest Loser
Senior
- Jun 20, 2003
- 313
- 0
Sorry, I disagree...
Given the history behind U and its 2 trips to BK...I would be extremely cautious of ANY STATEMENT on its financial health.
Oh anyway, if U’s mgt. doesn’t like what they see in the upcoming months then the employee’s wallets are always open.
SL
Im beginning to worry about the financial management of this company. In saturdays AZ Republic Phil Gee, US spokesman was quoted as saying that no one thought they needed to hedge fuel at 70.00/barrel last year. What planet are they living on? What would make them think fuel was going to remain stable or drop? World events? Like war, hurricanes, instability in the middle east, the lack of refineries and alternate fuels? If anyone thinks fuel is going to not reach 80.00/barrel or even 100.00/barrel they are living with their heads up their backsides. Ever hear prepare for the worst? Cant imagine they wouldnt have known better with all their highpriced analysts. JMHO.
Breath_of_Fresh_USAirways
Advanced
- Aug 27, 2005
- 233
- 0
It's a bigger risk to be "over" hedged and have fuel go down -- Can you imagine what kind of fools the finance managers would look like if US bought a bunch of hedges and fuel went DOWN? Would you wonder about them then?
Granted, it may look like fuel is going to $100 a barrel -- but none of us want that and everyone hopes it ain't so -- so what if oil does stabilize, or even go down? There are so many influences on that market, and in the world in general -- It IS possible.
Also, I believe that by not having too many hedges it forces US to continue to look for other ways to improve fuel consumption and cost savings measures.
Also, cash is king. Heaven forbid something happens in this world, a la 9/11, but even if the airline stops flying there are still bills to pay and if you've got your "cash" tied up in hedges and nobody wants to fly, well, the hedges wouldn't be worth the paper they're written on... Many, many, many issues to weigh when deciding to "hedge" fuel, and how much...not a simple equation. Would I like to see US more agressive in this area? Probably. However, I don't know all the issues, so I really can't say nor can I really judge if they've done enough, or as much as they can at the moment.
Mama -- Did you buy a lot of LCC stock when it was issued? Why not? You'd have more than double your money now if you were to sell. That would've have been the smart, financially savvy thing to do. You know you should have. Didn't believe LCC stock would more than double? Didn't have extra cash to spare? Had other, more pressing investments and/or expenditures? Saving for something else? Didn't want to take the risk and tie up your "cash"? Well, when US decides to hedge or not, it's a very similar difficult decision. And, last time I checked, even highly paid financial advisors cannot predict the future.
Granted, it may look like fuel is going to $100 a barrel -- but none of us want that and everyone hopes it ain't so -- so what if oil does stabilize, or even go down? There are so many influences on that market, and in the world in general -- It IS possible.
Also, I believe that by not having too many hedges it forces US to continue to look for other ways to improve fuel consumption and cost savings measures.
Also, cash is king. Heaven forbid something happens in this world, a la 9/11, but even if the airline stops flying there are still bills to pay and if you've got your "cash" tied up in hedges and nobody wants to fly, well, the hedges wouldn't be worth the paper they're written on... Many, many, many issues to weigh when deciding to "hedge" fuel, and how much...not a simple equation. Would I like to see US more agressive in this area? Probably. However, I don't know all the issues, so I really can't say nor can I really judge if they've done enough, or as much as they can at the moment.
Mama -- Did you buy a lot of LCC stock when it was issued? Why not? You'd have more than double your money now if you were to sell. That would've have been the smart, financially savvy thing to do. You know you should have. Didn't believe LCC stock would more than double? Didn't have extra cash to spare? Had other, more pressing investments and/or expenditures? Saving for something else? Didn't want to take the risk and tie up your "cash"? Well, when US decides to hedge or not, it's a very similar difficult decision. And, last time I checked, even highly paid financial advisors cannot predict the future.
Why do you ask a question and presume to know the answer? You ask if I have bought LCC stock and presume to think I didnt? Guess what? I had Hp stock that was converted and also contiue to buy LCC stock. Unlike the east many west employees were never paid decently and came on board more so for flight beneies or medical insurance. So some of us think of our paychecks as play money(if you knew what we made you would too) and use in any way we wish. We have spouses with decent incomes or many would not be working here. Having said that, has Doug opted to cash in his stock options? Thats where I'm looking. Im not stupid(contrary to what you believe) and when he sells I'll follow.
No one WANTS oil to go over 100/barrel but who would have thought it would jump the way it has? My question is, what would make them think it would go down? I cant believe with all their high priced analysts NO ONE would have thought about hedging more fuel. By the way, unless you were the one to recommend not hedging why are you so defensive? According to the AZ republic 8jul US spokesman said no way did they expect the oil increase. Im saying why not? I dont know anything about what amounts of cash to have on hand during a 9/11 and Im sure thats to be considered but dont come looking to labor for "cost savings." Thats what Im sick of. Management makes a bad decision and its always labor who should sacrifice.
No one WANTS oil to go over 100/barrel but who would have thought it would jump the way it has? My question is, what would make them think it would go down? I cant believe with all their high priced analysts NO ONE would have thought about hedging more fuel. By the way, unless you were the one to recommend not hedging why are you so defensive? According to the AZ republic 8jul US spokesman said no way did they expect the oil increase. Im saying why not? I dont know anything about what amounts of cash to have on hand during a 9/11 and Im sure thats to be considered but dont come looking to labor for "cost savings." Thats what Im sick of. Management makes a bad decision and its always labor who should sacrifice.
