robbedagain
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us posted a 287 mill profit down from 306 a yr before.. found it on www.justplanenews.com and they had a link to reuters
US POSTS PROFITS
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mike33
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Actually a record all things considered
US Airways Group, Inc. today reported its second quarter 2013 financial results. For the second quarter 2013, pretax profit excluding net special items was $409 million, the highest in Company history. Net profit excluding net special items was a record $324 million, or $1.58 per diluted share. Net profit excluding net special items for the second quarter 2012 was $321 million, or $1.61 per diluted share. The Company’s 2013 second quarter net profit excluding net special items was negatively impacted by a non-cash provision for income tax of $85 million. There was no provision for income tax recorded in 2012.
US Airways Group, Inc. Chairman and CEO Doug Parker stated, “These record financial results are thanks to the 32,000 team members of US Airways who delivered record results on multiple fronts. This performance provides excellent momentum as we transition into the new American Airlines. The teams are working very well together and we continue to expect to close the merger in the third quarter.”
WorldTraveler
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US is running a strong airline and is well-positioned going into the merger.
Could this be the last quarterly earnings for US as a standalone airline?
Could this be the last quarterly earnings for US as a standalone airline?
Harry Callahan
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Right on rat.
Harry
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robbedagain
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WT i dont think this is going to be the last profit as stand alone.... but i could be wrong...
WorldTraveler
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the next earnings release should be about the 3rd week of October to cover July-September..... not sure when the merger will be approved but I bet it will be very close to that date.
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robbedagain
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i can believe it given us has always been the biggest east coast centric airline
WorldTraveler
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If the east coast is defined as any state that touches the Atlantic ocean, US is not the largest carrier on the East coast. If the definition is the NE, then yes, US is the largest carrier.
Regardless of the definition, US has recorded fuel costs lower than other carriers that hedge including AA and UA in the past and US' fuel cost was lower than AA's at $3.02/gal -and AA has nothing to do with the refinery.
IN addition to a loss from the refinery due to renewal energy requirements, DL also recorded a mark to market adjustment to its hedge positions, likely because fuel prices in the 2nd quarter were relatively low. However, fuel prices have rebounded which means those carriers who hedge (most of the large airlines except for US) are in better position because of the hedges.
Nowhere in the strategy for DL's refinery did it say that its strategy was to keep all of the benefits to DL; in fact, since the stated strategy was to reduce overall fuel prices, it is impossible for US to claim benefits from DL's strategy without acknowledging that DL has gained the same benefits.
Regardless of the definition, US has recorded fuel costs lower than other carriers that hedge including AA and UA in the past and US' fuel cost was lower than AA's at $3.02/gal -and AA has nothing to do with the refinery.
IN addition to a loss from the refinery due to renewal energy requirements, DL also recorded a mark to market adjustment to its hedge positions, likely because fuel prices in the 2nd quarter were relatively low. However, fuel prices have rebounded which means those carriers who hedge (most of the large airlines except for US) are in better position because of the hedges.
Nowhere in the strategy for DL's refinery did it say that its strategy was to keep all of the benefits to DL; in fact, since the stated strategy was to reduce overall fuel prices, it is impossible for US to claim benefits from DL's strategy without acknowledging that DL has gained the same benefits.
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robbedagain
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either way though us' fuel cost was a lot lower than other us air carriers... done without fuel hedging that has to help them make repeated profits doesnt it
WorldTraveler
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absolutely.... but US' fuel has been higher at other times than other carriers since they stopped hedging. The prime reason that US stopped hedging was because of the balance sheet risk and the amount of cash that gets tied up in hedging. US lost a lot of money on bad hedges in 2008 which "helps" their anxiety.
But fuel prices fell during the 2nd quarter which bodes better for US who was unhedged than it does for other carriers who are hedged. The hedges other carriers cost money if fuel prices drop (in general) while US gets the full benefit of the price drop. But the flip side is that an unhedged carrier like US faces the full increase in price increases when those come while other carriers do not. Fuel prices are up over the past several weeks and if those price increases hold or continue, the advantage will likely shift to the hedged carriers.
In reality, US has done fairly well being unhedged, to a great degree because fares are increasing these days when fuel prices increase. IN the past, fuel prices went up and carriers could not raise fares because there was too much capacity, esp. among low fare carriers who had lower costs.
I am sure that DL and UA are evaluating the value of hedging and Parker and co. will have to evaluate again post merger with AA since AA does hedge - and has done a pretty good job of managing fuel prices, even in BK. If other carriers start dropping their hedging programs, then it might well confirm that US was right several years in stopping hedging. For now, DL says it will continue to hedge in addition to working on its refinery strategy. UA hasn't reported yet so we don't know how they did WRT fuel (neither has WN or a few others either).
But fuel prices fell during the 2nd quarter which bodes better for US who was unhedged than it does for other carriers who are hedged. The hedges other carriers cost money if fuel prices drop (in general) while US gets the full benefit of the price drop. But the flip side is that an unhedged carrier like US faces the full increase in price increases when those come while other carriers do not. Fuel prices are up over the past several weeks and if those price increases hold or continue, the advantage will likely shift to the hedged carriers.
In reality, US has done fairly well being unhedged, to a great degree because fares are increasing these days when fuel prices increase. IN the past, fuel prices went up and carriers could not raise fares because there was too much capacity, esp. among low fare carriers who had lower costs.
I am sure that DL and UA are evaluating the value of hedging and Parker and co. will have to evaluate again post merger with AA since AA does hedge - and has done a pretty good job of managing fuel prices, even in BK. If other carriers start dropping their hedging programs, then it might well confirm that US was right several years in stopping hedging. For now, DL says it will continue to hedge in addition to working on its refinery strategy. UA hasn't reported yet so we don't know how they did WRT fuel (neither has WN or a few others either).
