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US Airways Reports March Operating Profit  
User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 6027 times:

US Airways reported its First Quarter 2005 results, available at http://www.usairways.com/about/press/nw_05_0429.htm. Although the March numbers won't be available for another day or two, you can figure out the numbers from the Jan/Feb and quarterly results.

US had an operating loss of $201 million for the quarter, with a $134 million operating loss in January and an $85 million operating loss in February. This implies a $19 million operating profit in March.

As I had expected, though no one else seemed to believe, the company was cashflow positive in March. US generated positive cashflow from operations in the amount of $32 million. When added to $75 million in debtor-in-possession financing from Air Wisconsin, their unrestricted cash total increased from $405 million in February to $513 million in March.

Mainline CASM excluding fuel decreased 15.6% to 8.46 cents.

The cost of aviation fuel per gallon increased 48.1% to $1.472. Overall mainline CASM including fuel decreased 6.8% to 10.89 cents.

[Edited 2005-04-29 19:29:12]


I'm the expert on here on two things, neither of which I care about much anymore.
42 replies: All unread, showing first 25:
 
User currently offlineCommavia From United States of America, joined Apr 2005, 11117 posts, RR: 62
Reply 1, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 6011 times:

Their Statement of Operations says that their operating loss was $201 million for the Jan-Mar 05 period.

User currently offlineSHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 17
Reply 2, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5980 times:

Quoting Commavia (Reply 1):
Their Statement of Operations says that their operating loss was $201 million for the Jan-Mar 05 period.

Perhaps you might want to read the snippet of the article that A330323X posted.

A330323X-Unfortunately, that link you posted is a dead link. You might want to revise it.



Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineCommavia From United States of America, joined Apr 2005, 11117 posts, RR: 62
Reply 3, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5950 times:

Quoting SHUPirate1 (Reply 2):
Perhaps you might want to read the snippet of the article that A330323X posted

I did read US' press release, but also their Statement of Operations, available through the link about half way down the page.

That, a financial breakdown of the company's Q1 performance, indicates a $201 million operating loss.


User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 4, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5932 times:

Quoting Commavia (Reply 3):
That, a financial breakdown of the company's Q1 performance, indicates a $201 million operating loss.

I never said otherwise. In fact, I said

Quoting A330323X (Thread starter):
US had an operating loss of $201 million for the quarter, with a $134 million operating loss in January and an $85 million operating loss in February. This implies a $19 million operating profit in March.

I don't see the problem.

(Oh, and SHUPirate1, I fixed the link.)



I'm the expert on here on two things, neither of which I care about much anymore.
User currently offlinePadcrasher From , joined Dec 1969, posts, RR:
Reply 5, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5917 times:

Why look at operating profit? Excluding 1x charges they lost 280 Mil. Around an 18% loss margin. Cash by now is down in the high 300 Mil range near the 325 Mil limit to quailify for continued financing from the Government.

User currently offlineBlatantEcho From United States of America, joined Sep 2000, 1896 posts, RR: 1
Reply 6, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5889 times:

"Mainline CASM excluding fuel decreased 15.6% to 8.46 cents."

good

"Loss Attributed to High Fuel Prices and Growing Low Fare Competition"

no one saw that coming?


Steeper losses than last year quarter for quarter.........ugh, please, just put a fork in this thing.



They're not handing trophies out today
User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 7, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5882 times:

Quoting Padcrasher (Reply 5):
Cash by now is down in the high 300 Mil range near the 325 Mil limit to quailify for continued financing from the Government.

I guess if you consider $513 million in the high $300 million range.  Yeah sure



I'm the expert on here on two things, neither of which I care about much anymore.
User currently offlinePadcrasher From , joined Dec 1969, posts, RR:
Reply 8, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5861 times:

I don't know how to say "by now" any clearer. How bout as of the end of April after fuel went up 15% from February's highs?

User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 9, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5841 times:

Well, all I have to say is that US is cashflow positive from March on.

Nobody believed me that they would be for March, but they were; so I really don't care if you think otherwise for April.



I'm the expert on here on two things, neither of which I care about much anymore.
User currently offlinePadcrasher From , joined Dec 1969, posts, RR:
Reply 10, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5818 times:

The cash gain came from loans. It wasn't via positive cash flow from operations. They had 405 Mil and the end of Feb recieved 250 Mil in loans and then wound up with 531 mil. That's around a 125 mil in negative operating cash flow for March.

User currently offlineAvek00 From United States of America, joined Oct 2004, 4282 posts, RR: 20
Reply 11, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5805 times:

Quoting A330323X (Reply 9):
Nobody believed me that they would be for March, but they were; so I really don't care if you think otherwise for April.

..and almost every airline has acknolwedged that March financial data was aided by Easter falling in March instead of April, and that April will prove a step backwards.



Live life to the fullest.
User currently offlineSHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 17
Reply 12, posted (8 years 11 months 3 weeks 4 days 9 hours ago) and read 5805 times:

Quoting Padcrasher (Reply 10):
The cash gain came from loans. It wasn't via positive cash flow from operations. They had 405 Mil and the end of Feb recieved 250 Mil in loans and then wound up with 531 mil. That's around a 125 mil in negative operating cash flow for March.

Padcrasher-Only the 125 million from AWAC is accounted for, not the 125 million from Republic.



Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 13, posted (8 years 11 months 3 weeks 4 days 8 hours ago) and read 5799 times:

Quoting Padcrasher (Reply 10):
The cash gain came from loans. It wasn't via positive cash flow from operations. They had 405 Mil and the end of Feb recieved 250 Mil in loans and then wound up with 531 mil. That's around a 125 mil in negative operating cash flow for March.

Um, no.

They had $405 million, and they received $75 million in loans. The $125 Air Wisconsin debtor-in-possession commitment is to be drawn in steps, with $75 million in March, and further installments of $25 million each in April and May. The $125 Republic investment is to be an equity investment made upon emergence from bankruptcy. Thus, as I said

Quoting A330323X (Thread starter):
US generated positive cashflow from operations in the amount of $32 million.



I'm the expert on here on two things, neither of which I care about much anymore.
User currently offlineCommavia From United States of America, joined Apr 2005, 11117 posts, RR: 62
Reply 14, posted (8 years 11 months 3 weeks 4 days 8 hours ago) and read 5763 times:

Quoting A330323X (Reply 4):
I never said otherwise.

I apologize -- I thought the thread was titled USAirways reports Q1 operating profit. Sorry about that.


User currently offlineSonOfACaptain From United States of America, joined May 2004, 1747 posts, RR: 6
Reply 15, posted (8 years 11 months 3 weeks 4 days 7 hours ago) and read 5613 times:

Only here can we take good news from US and turn it into something bad. I am getting the impression that some people just don't want to hear good news at US. A330323X, SHUPirate1, and I seem to be the only people here that actually aknowledges good reports from US. (I know there is a few more) Come on guys, stop thinking that US hasn't done anything good these past few years.

-SOAC



Non Illegitimi Carborundum
User currently offlineAvek00 From United States of America, joined Oct 2004, 4282 posts, RR: 20
Reply 16, posted (8 years 11 months 3 weeks 4 days 7 hours ago) and read 5557 times:

Since when is a quarterly net loss of $280 million good news?


Live life to the fullest.
User currently offlineApodino From United States of America, joined Apr 2005, 4124 posts, RR: 6
Reply 17, posted (8 years 11 months 3 weeks 4 days 7 hours ago) and read 5547 times:

And United seems to still be in the same boat, extension after extension, a business that has become much more complicated since Tilton took over, rather than simpler which is needed to cut costs.

And USAirways has identified lots of money makers, ie more service to augusta during masters, indy during the 500, and seasonal service where demand warrants it. In fact Shannon and Dublin bookings are strong already according to a source.

Getting dumped by United was the best thing that happened to ZW. ZW management even said that if they continued flying at what United wanted them to fly for, it would have put Air Wisconsin out of business.

USAirways is clearly heading in the right direction. Mark my words. They will emerge from bankruptcy before United, and their goal is to get costs lower than Southwests. I like the fact that they have a plan and a clear vision. Have we seen that with United? All united does is put gag orders on everyone.


User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6479 posts, RR: 24
Reply 18, posted (8 years 11 months 3 weeks 4 days 7 hours ago) and read 5536 times:

I'm not sure what is supposedly so great about these numbers. The operating profit in March was no surprise....many carriers (even legacy) reported small operating profits in March. I wouldn't be surprised if US reported small operating profits in May, June, July and August. However, losses during the rest of the year will more than offset these gains.

What's really disturbing is USAirways revenue performance....absolutely dismal!!!! USAirways had the WORST unit revenue performance of any carrier that has reported so far.


User currently offlineERJ170 From United States of America, joined Apr 2004, 6729 posts, RR: 18
Reply 19, posted (8 years 11 months 3 weeks 4 days 7 hours ago) and read 5534 times:

Quoting Avek00 (Reply 16):
Since when is a quarterly net loss of $280 million good news?

Well, its not $1.1 billion (Dl, even though I like DL), $450 Million (even though I like NW), only slightly worst than others (AA $162 Million, CO $182 Million) and god knows what UAL will post.. so I would have to say that right now, US is actually doing better than average..



Aiming High and going far..
User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6479 posts, RR: 24
Reply 20, posted (8 years 11 months 3 weeks 4 days 7 hours ago) and read 5522 times:

Quoting ERJ170 (Reply 19):
Well, its not $1.1 billion (Dl, even though I like DL), $450 Million (even though I like NW), only slightly worst than others (AA $162 Million, CO $182 Million) and god knows what UAL will post.. so I would have to say that right now, US is actually doing better than average..

You can't compare losses like that. US is a much smaller airline than AA, NW, CO or DL. A $280 million loss at a small airline like US is actually far worse than a $182/162 million loss at a much larger airline like CO/AA.


User currently offlineApodino From United States of America, joined Apr 2005, 4124 posts, RR: 6
Reply 21, posted (8 years 11 months 3 weeks 4 days 7 hours ago) and read 5497 times:

Quoting ERJ170 (Reply 19):
Quoting Avek00 (Reply 16):
Since when is a quarterly net loss of $280 million good news?

Well, its not $1.1 billion (Dl, even though I like DL), $450 Million (even though I like NW), only slightly worst than others (AA $162 Million, CO $182 Million) and god knows what UAL will post.. so I would have to say that right now, US is actually doing better than average..

If I remember correctly, 162 million and 182 million are less than 280. How is that better?


User currently offlineCommavia From United States of America, joined Apr 2005, 11117 posts, RR: 62
Reply 22, posted (8 years 11 months 3 weeks 4 days 6 hours ago) and read 5476 times:

Quoting SonOfACaptain (Reply 15):
Only here can we take good news from US and turn it into something bad. I am getting the impression that some people just don't want to hear good news at US.

This is just bad news.

As ERJ170 alluded to, comparing US' loss of $280 million to AA's $162 million net loss does not account for the fact that AA is almost three times as large as US. AA had a pre-tax net loss margin of 4.22%, while US had a pre-tax net loss margin of 13.20%. That is a very big difference.


User currently offlinePadcrasher From , joined Dec 1969, posts, RR:
Reply 23, posted (8 years 11 months 3 weeks 4 days 5 hours ago) and read 5351 times:

I stand corrected. I had no idea that had made that much improvement in cash flow. As you said I think they were around 37Mil in positive cash flow for March, less about 26 Mil in interest payments. That's 12 mil added to cash.
Don't look for the next 6 Months to be any worse. Just comparing March to January they made huge improvements in labor costs.


User currently offlineIndy From United States of America, joined Jan 2005, 4522 posts, RR: 18
Reply 24, posted (8 years 11 months 3 weeks 4 days 5 hours ago) and read 5330 times:

Even if they have $500 million. Losing $280 million is bad. Two more quarters of that and they are finished. Provided its not all paper loss and the money is draining their cash reserves. $500 milion seems very low for a carrier that size. Even if you bleed only $50 million a month it gives you less than a year to live.


Indy = Indianapolis and not Independence Air
25 Ouboy79 : The main thing that is clear with US now, is that they have one major thing to fix - their network. Southwest may come into PHL all it wants, but gues
26 Goingboeing : These "good" reports are sort of like a cancer ravaged patient reporting that he didn't puke with the last chemo treatment. Great news for that incide
27 Elwood64151 : That's extremely presumtuous. Positive cash flow in March does NOT mean that there will be positive flow in April or May. While I agree with your sen
28 Post contains images Lightsaber : Congrats to US! 10.89 cents! Why with the current salaries does US have a mainline CASM so high? Does anyone have a breakdown? In the current RASM en
29 Padcrasher : It means exactly that. April May bring in more revenue than March.
30 Avek00 : As mentioned previously by most airlines, the YOY March figures were aided by Easter, and the YOY April figures will be negatively impacted as a resu
31 Post contains images A330323X : I never said that these numbers were great. They're generally OK, about on track with what I had expected, and what they need going forward. What I d
32 Morvious : Like you are saying, if you are a patient, fighting a decese like cancer, I think you would be happy to see a positive result on a chemo treatment in
33 Bennett123 : Two points spring to mind. 1. A profitable March in only the first step. 2. What is the cash flow situation ignoring one off loans. When a company goe
34 CaptainT38 : And what was the loss for DL?
35 ERJ170 : You seriously need to read that better.. I said that the $280Mil was slightly worst than AA/CO... and it is.. in comparison to what other carriers lo
36 Post contains images TPASXM787 : We're waiting on UA Early indications are it may be much much worse. Like DL worse. Have to disagree. All early signs point to a US/HP merger and mos
37 Nucsh : Agreed.
38 Galapagapop : Exactly, everyone rags on US like its over. When they forget to look at the no 2 carrier they've been in BK for over 2 1/2 years and have done nothin
39 Jeffrey1970 : A330323X, I certainly hope that you are right
40 Ouboy79 : Honestly at this point it is up to GE if US dies or not. Then you throw in RSA, AWAC, AWA, and other potential funding firms like Mesa, Republic, etc.
41 SonOfACaptain : Here is some hard evidence that proves US did indeed report a March profit. CHARLOTTE (Observer) - US Airways made $65 million in net income in March,
42 Jdaniel001 : No need to prove it to me. Unlike the others, I believe that US will be ok. If everyone wants to knock airlines, go knock WN, AA or DH. WN is getting
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