Us Airways Expects To See Profit In 2006
- Thread starter USA320Pilot
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RowUnderDCA
Veteran
- Oct 6, 2002
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i'm one of those that used to really appreciate nice meals and fancy service, but somehow that feels so 20th century. Yes, in transcon or int FIRST class do it up. But in a business class transcon, give me a nice sandwich and maybe some hot soup or something... but no haute cuisine.
Here is what I find to be the most significant passage of the article:
Have conditions really changed this dramatically in two months? Or is management's story changing? My gut says that not much has changed since mid-December (concession targets were in place, fuel backed off of the record highs set in October).
Have conditions really changed this dramatically in two months? Or is management's story changing? My gut says that not much has changed since mid-December (concession targets were in place, fuel backed off of the record highs set in October).
Twicebaked
Veteran
- May 22, 2003
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These same passengers have to realize that what they once had is NO LONGER. Those on this board keep telling US employees that we need to accept the changing industry (i.e. lower wages to stay alive and company strategy changes), well they too need to realize that the "services" in the industry are changing as well. It is sad, but true.Hope777 said:
Just out of curiousity, name a US carrier with a real first class that is profitable nowadays...
Not saying it is time to get rid of such, but I am saying that it is time to readdress everything and anything we do, to offer better value (meaning something the pasenger is willing to pay for) rather than just sticking with the way things are.
IMO, a good expample migt be to look at Midwest Airlines, long known, and still known as the "best care in the air". They too have cut back, yet found a happy medium between offering what the customer wants, and what the customer will pay for.
Not saying it is time to get rid of such, but I am saying that it is time to readdress everything and anything we do, to offer better value (meaning something the pasenger is willing to pay for) rather than just sticking with the way things are.
IMO, a good expample migt be to look at Midwest Airlines, long known, and still known as the "best care in the air". They too have cut back, yet found a happy medium between offering what the customer wants, and what the customer will pay for.
Rico said:
How do you explain the profitability of BA, CX, QF, SQ, LH and the others? They are profitable because they are foreign?
Could their profitability be the result of a lack of overcapacity in their markets?
There's far too much capacity here in the USA.
If a couple large carriers shut down tomorrow, the passengers who are willing to pay higher fares would be shared among fewer airlines. Additionally, the reduction in capacity could not be instantly restored by the hated LCCs - leading to a long-overdue rise in fares. Those unwilling to pay higher fares would thus be left home (since capacity would be reduced). Voila - profits for the industry.
BoeingBoy
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- Nov 9, 2003
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FWIW, First Call Earnings Valuation Report reflects roughly the same numbers for 2005 but they don't go beyond that.
With only one broker's estimates, they say an EPS loss of $3.60 in 1Q, profit of $1.32 in 2Q, loss of $1.20 in 3Q, and loss of $2.28 in 4Q. That nets to a loss of $5.76 per share for the year.
Presumably these are based on the 56-58 million shares outstanding.
Jim
With only one broker's estimates, they say an EPS loss of $3.60 in 1Q, profit of $1.32 in 2Q, loss of $1.20 in 3Q, and loss of $2.28 in 4Q. That nets to a loss of $5.76 per share for the year.
Presumably these are based on the 56-58 million shares outstanding.
Jim
BoeingBoy
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The short answer is "Yes" and "Yes".
Operating loss of $207 million turned into a net profit of $1.6 billion thanks to $1.9 billion of "reorganization items, net".
Those "reorganization items" were composed of:
Discharge of liabilities $3,938 million
Restructured aircraft financings $967 million
Termination of pension plans, net $387 million
Damage and deficiency claims ($2,167 million)
Revaluation of assets and liabilities ($1,107 million)
Professional fees ($51 million)
Other ($50 million)
Total = $1,917 million
Jim
ps - and FWIW they learned from their past mistake with the "temporary 5% war pay cut". I don't think it's any accident that profit sharing is based on annual profits excluding one time items.
Operating loss of $207 million turned into a net profit of $1.6 billion thanks to $1.9 billion of "reorganization items, net".
Those "reorganization items" were composed of:
Discharge of liabilities $3,938 million
Restructured aircraft financings $967 million
Termination of pension plans, net $387 million
Damage and deficiency claims ($2,167 million)
Revaluation of assets and liabilities ($1,107 million)
Professional fees ($51 million)
Other ($50 million)
Total = $1,917 million
Jim
ps - and FWIW they learned from their past mistake with the "temporary 5% war pay cut". I don't think it's any accident that profit sharing is based on annual profits excluding one time items.
robbedagain
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- Oct 13, 2003
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i'd say may be Midwest Airlines which has first class service and may be profitable now but i am not 100% sure though and may be america west as well with the first class service
Singleflyer
Senior
- Mar 27, 2003
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Midwest is not what is was. They have cut back on their hot meals. I think the only item that is warm are their choc. chip cookies. They may have wide seats in the DC-9's and 717, but no leg room. The airline has also started an "airline within an airline" as well.
They may still offfer the best care in the air, but it is at a lower standard than pre 9/11
They may still offfer the best care in the air, but it is at a lower standard than pre 9/11
Bluestreak
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- May 20, 2003
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From the article: "The company also told labor leaders last week that it was still searching for ways to cut another $500 million through operational savings, a process that involves the review of thousands of vendor contracts."
Maybe they will dump Mesa? Is that why JO has been pushing for narrow boby rates from the Mesa pilots recently? Mesa becomes ACA/Indepedence #2. With the only difference being no one will feel bad seeing Mesa put through the ringer.
Maybe they will dump Mesa? Is that why JO has been pushing for narrow boby rates from the Mesa pilots recently? Mesa becomes ACA/Indepedence #2. With the only difference being no one will feel bad seeing Mesa put through the ringer.
