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UAL Reports 2Q Net Income Of $274 Million  
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17412 posts, RR: 46
Posted (7 years 4 weeks 13 hours ago) and read 4662 times:

http://biz.yahoo.com/prnews/070724/aqtu022.html?.v=24

" -- Reported net income of $274 million, an increase of $155 million or
130 percent over the second quarter of 2006. UAL's pre-tax income of
$465 million was an improvement of $349 million year-over-year.

-- Increased mainline passenger unit revenue by 5.2 percent and increased
consolidated passenger unit revenue by 4.7 percent from the second
quarter of 2006.

-- Continued its good cost performance, with second quarter mainline CASM,
excluding fuel and severance charges, down 0.5 percent from the second
quarter of 2006.
"


E pur si muove -Galileo
51 replies: All unread, showing first 25:
 
User currently offlineATLAaron From United States of America, joined Apr 2006, 1023 posts, RR: 3
Reply 1, posted (7 years 4 weeks 13 hours ago) and read 4609 times:
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Really a great quarter for UA. I am always complaining about how they need to step it up, but this looks good to me. I am really beginning to wonder what UA is going to do with all that cash.

I'm wondering if UA may end up acquiring, instead of being acquired.


User currently offlineFlying-tiger From Germany, joined Aug 1999, 4161 posts, RR: 36
Reply 2, posted (7 years 4 weeks 13 hours ago) and read 4586 times:

Far more interesting IMO:

Quote:
United and Aloha Airlines signed an agreement to strengthen their partnership in the Hawaii and trans-Pacific markets. This capitalizes on both Aloha's and United's 60 years of experience in serving Hawaii and expands marketing, operational and financial opportunities for both carriers. Under the agreement, United Airlines receives a seat on Aloha's board of directors and a minority equity stake that could expand over time.

Might have been discussed before, but that clearly puts UA on a very firm foot in Hawaii.



Flown: A319/320/321,A332/3,A380,AT4,AT7,B732/3/4/5/7/8,B742/4,B762/763,B772,CR2,CR7,ER4,E70,E75,F50/70,M11,L15,S20
User currently offlineUAL777UK From United Kingdom, joined Nov 2005, 3356 posts, RR: 1
Reply 3, posted (7 years 4 weeks 13 hours ago) and read 4528 times:

Very strong results and lets be honest they had to be. With the announcement of the new J seats and all thats going with it, i.e. new F seat, new Y cabin interiors I really feel positive about the future for UA. I hope they can just life that staff morale up a peg or two as well!

User currently offlineFlighty From United States of America, joined Apr 2007, 8464 posts, RR: 2
Reply 4, posted (7 years 4 weeks 12 hours ago) and read 4453 times:

IAD-PEK is no doubt contributing here.

User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 60
Reply 5, posted (7 years 4 weeks 12 hours ago) and read 4413 times:

CASM at 10.99 is still a little high, if they can get that down < .10, I think they would be doing very well then......and yes, I think they have a lot of challenges to overcome......

Regardless, kudos to UA.. thumbsup ...there are many here (especially some of the koolaiders from other carriers-I won't mention names, but they know who they are) who love bashing UA....this goes to show UA is still a carrier to be reckoned with.. yes ...



"Up the Irons!"
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17412 posts, RR: 46
Reply 6, posted (7 years 4 weeks 12 hours ago) and read 4394 times:

Quoting Jacobin777 (Reply 5):
who love bashing UA

I do wish death upon Ted but otherwise I like UA. Seems like a good quarter, especially since their CASM is down. Maybe their management isn't as incompetent as I thought...that would be a good thing!



E pur si muove -Galileo
User currently offlineDIA From United States of America, joined Jan 2001, 3273 posts, RR: 28
Reply 7, posted (7 years 4 weeks 12 hours ago) and read 4394 times:

UAL is the only major airline carrier in the world (out of banckruptcy) that does not have any a/c on order. My guess is they will convert most if not all the options it still hold with Airbus for more A319/20s to rid themselves of their elder 733s. In terms of any widebody order...I have no idea where they stand, or how long they plan on 'standing' instead of getting their buts in gear...ordering some new widebody equipment...enabling them to compete better with other world-class airlines.


Ding! You are now free to keep supporting Frontier.
User currently offlineFriendlySkies From United States of America, joined Aug 2004, 4105 posts, RR: 5
Reply 8, posted (7 years 4 weeks 12 hours ago) and read 4394 times:

Good results...if UA can focus on customer service and lowering costs by means other than outsourcing (i.e. increasing productivity of both employees and fleet), I think they will be on a very strong footing.

As discussed in a previous thread, in about five years UA will be in an extremely good position to replace most of their fleet with new generation aircraft -- narrowbodies included -- while most domestic competitors are still flying newer A320 and 737NG. I think that UA has been much smarter about it's fleet acquisitions than some on this board like to think.

Basically, average fleet age is about 12 years. Oldest widebody is from 1989 I believe, 747. Oldest 737 is also from 1989. I expect UA to place a large order for narrowbody and widebody around 2009, probably from one manufacturer. I also don't believe those A320s will ever be delivered, but could be wrong.

But, right now, customer service needs to priority #1.

[Edited 2007-07-24 17:29:47]

User currently offlineRDUDDJI From Lesotho, joined Jun 2004, 1465 posts, RR: 3
Reply 9, posted (7 years 4 weeks 12 hours ago) and read 4388 times:

I for one, am also very exited for UA. I know from experience that the employees at UA have given and given of themselves, so it's good to see things looking better.

As far as what are they gonna do with all the cash...I'd speculate they may buy some stock back.

Quoting Jacobin777 (Reply 5):
CASM at 10.99 is still a little high, if they can get that down < .10, I think they would be doing very well then......and yes, I think they have a lot of challenges to overcome......

True, and now that UA had such a good quarter, all the employees are gonna want more money.



Sometimes we don't realize the good times when we're in them
User currently offlineFlighty From United States of America, joined Apr 2007, 8464 posts, RR: 2
Reply 10, posted (7 years 4 weeks 12 hours ago) and read 4345 times:

Quoting FriendlySkies (Reply 8):
As discussed in a previous thread, in about five years UA will be in an extremely good position to replace most of their fleet with new generation aircraft -- narrowbodies included -- while most domestic competitors are still flying newer A320 and 737NG. I think that UA has been much smarter about it's fleet acquisitions than some on this board like to think.

Good point. I agree 100%. Their Airbuses and Boeings are in fine shape for another 10 years.

Quoting Jacobin777 (Reply 5):
CASM at 10.99 is still a little high, if they can get that down < .10, I think they would be doing very well then......and yes, I think they have a lot of challenges to overcome......

It's very high CASM. UA's seat configs are quite premium though. If you exclude the influence of Y+, their CASM probably drops below 10c. UA has decided Y+ is worth the cost, however. Very neat strategy.


User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 60
Reply 11, posted (7 years 4 weeks 12 hours ago) and read 4315 times:

Quoting RDUDDJI (Reply 9):
True, and now that UA had such a good quarter, all the employees are gonna want more money.

..which is unfortunate...UA needs to still need to reduce debt and make sure they have enough  dollarsign  for the next cyclical downturn...

Quoting Flighty (Reply 10):
If you exclude the influence of Y+, their CASM probably drops below 10c.

.....they do charge for Y+ to a certain extent...either at the airport for an upgrade, or $300/year to fly on Y+ (assignable seating at time of booking)...



"Up the Irons!"
User currently offlineUnited787 From United States of America, joined May 2005, 2698 posts, RR: 1
Reply 12, posted (7 years 4 weeks 11 hours ago) and read 4177 times:

Quoting FriendlySkies (Reply 8):
Basically, average fleet age is about 12 years. Oldest widebody is from 1989 I believe, 747. Oldest 737 is also from 1989. I expect UA to place a large order for narrowbody and widebody around 2009, probably from one manufacturer. I also don't believe those A320s will ever be delivered, but could be wrong.



Quoting Flighty (Reply 10):
Good point. I agree 100%. Their Airbuses and Boeings are in fine shape for another 10 years.

I totally agree. United doesn't need any new planes at the moment, but they do need to improve the interiors of some of their current fleet which has been discussed on this forum to death. I would love to see new seats including PTVs for the 747 fleet and for the old seat covers to be replaced with the new standard.

Congrats to United! Things are looking up...


User currently offlineFXramper From United States of America, joined Dec 2005, 7247 posts, RR: 85
Reply 13, posted (7 years 4 weeks 10 hours ago) and read 4086 times:
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Quoting Flighty (Reply 4):
IAD-PEK is no doubt contributing here.

Source?

Quoting MaverickM11 (Reply 6):
I do wish death upon Ted

Flamebait?



This thread is as clueless as UA management. Wonder what they'll do with the profit this quarter; maybe give themselves a bonus?  no 


User currently offlineTommytoyz From Tonga, joined Jan 2007, 1353 posts, RR: 6
Reply 14, posted (7 years 4 weeks 9 hours ago) and read 4028 times:

Reality Check:

Net income was $274 Million. Of that $192 Million is from income tax credits, left over from the pre BK days. per IRS rules. Without that, which will dry up at some time, net income was only $82 Million.

For a company that big and out of $5.2 Billion in revenues - $82 million is a razor thin profit margin, almost nothing. UA is still not in a strong position. I predict they will need to shrink down to size as they're simply not the strongest animal on the prairie. Virgin America, Skybus and God knows who else are gearing up..........

UA fails to impress me from a business standpoint.


User currently offlineBoston92 From United States of America, joined Aug 2006, 3390 posts, RR: 7
Reply 15, posted (7 years 4 weeks 9 hours ago) and read 4028 times:

Quoting FXramper (Reply 13):
Source?

Source? Any route is no doubt contributing to the airlines success or failure. If the route is doing good with the seats full, the route is "no doubt" contributing to the success of the airline.



"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17412 posts, RR: 46
Reply 16, posted (7 years 4 weeks 9 hours ago) and read 4005 times:

Quoting FXramper (Reply 13):
Flamebait?

Just making clear everyone knows my bias Smile

Quoting FXramper (Reply 13):
This thread is as clueless as UA management.

You want to elaborate on that?

Quoting Tommytoyz (Reply 14):
Of that $192 Million is from income tax credits

Isn't that an expense, without which their income would have been $465 Million?

"Income tax expense 192 "



E pur si muove -Galileo
User currently offlineFXramper From United States of America, joined Dec 2005, 7247 posts, RR: 85
Reply 17, posted (7 years 4 weeks 9 hours ago) and read 3999 times:
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Quoting Boston92 (Reply 15):
Source? Any route is no doubt contributing to the airlines success or failure.

Do you work in UA revenue management? Do you know what they are selling their seats on that route for? Do you know how full premium seating is? How much cargo are they hauling? How long has this route been active and we have a confirmed profit?!

 rotfl 


User currently offlineDsa From , joined Dec 1969, posts, RR:
Reply 18, posted (7 years 4 weeks 9 hours ago) and read 3999 times:

A good set of results for UA, its obvious that international travel is going to be the future of the airline in terms of major profitability. Is TED counted as one of their 'regional affiliates?' Is TED profitable?

I think UA does need new planes, although I think rather more for expansion than replacement.

'United reports strong second quarter'

UNITED RESULTS SPECIAL: http://letsfindaflight.com/page_1181845192626.html


User currently offlineBoston92 From United States of America, joined Aug 2006, 3390 posts, RR: 7
Reply 19, posted (7 years 4 weeks 9 hours ago) and read 3999 times:

Quoting Tommytoyz (Reply 14):
UA fails to impress me from a business standpoint.

Making money is a pretty good indication that you are doing something right, from a business standpoint.



"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
User currently offlineSlider From United States of America, joined Feb 2004, 6792 posts, RR: 34
Reply 20, posted (7 years 4 weeks 9 hours ago) and read 3989 times:

Quoting ATLAaron (Reply 1):
I am really beginning to wonder what UA is going to do with all that cash.

Why does everyone continue to think something has to "be done" with a cash balance? It's as if the money burns a whole in your pockets or something. And relative to CO and AA, in terms of cash/revenue, UA has more work to do actually.

Especially important in context of rising fuel costs.

Quoting Tommytoyz (Reply 14):
Reality Check:

Net income was $274 Million. Of that $192 Million is from income tax credits, left over from the pre BK days. per IRS rules. Without that, which will dry up at some time, net income was only $82 Million.

Thank you--someone is the voice of reason here.

$82M net result for the quarter is not good, especially compared to the competition. But it is a positive result at least.

I'm wondering if someone--anyone--on the Street will wise up and question UA and their "business plan" coming out of BK, because they dont have one. Nothing has changed. Ted is still diluting their brand, as they chase the needle of market segmentation to an unhealthy extreme.


User currently offlineBoston92 From United States of America, joined Aug 2006, 3390 posts, RR: 7
Reply 21, posted (7 years 4 weeks 9 hours ago) and read 3964 times:

Quoting FXramper (Reply 17):
Do you work in UA revenue management? Do you know what they are selling their seats on that route for? Do you know how full premium seating is? How much cargo are they hauling? How long has this route been active and we have a confirmed profit?!

Your missing the point and are thinking wayyyy too hard.

All UA routes are contributing to the success of United Airlines.



"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
User currently offlineLonghornmaniac From United States of America, joined Jun 2005, 3284 posts, RR: 44
Reply 22, posted (7 years 4 weeks 9 hours ago) and read 3953 times:

Quoting Flighty (Reply 4):
IAD-PEK is no doubt contributing here.

Contributing...sure. So is every other flight that's profitable, though. How do you know this route is profitable? This route may very well be successful long term, but let's hold off on making statements like these until Father Time has had his say on the matter.

Quoting Boston92 (Reply 15):
If the route is doing good with the seats full, the route is "no doubt" contributing to the success of the airline.

That's not completely true. Passengers are but one factor that determine a flight's profitability. And even so, as FXRamper said, there are many factors that determine how big an impact passengers have on profitability: how much the seats are selling for?, how much the passengers are paying for (if they're paying at all)?, how much are people paying for premium seats (or are they)?, how's the cargo revenue? There is so much more that goes on behind the scenes, so to speak, that factors into a flight's possibility. The number of empty seats can be deceptive, as flights going out full can still lose money, and seemingly empty flights can still make money. It's all a big balancing act.  Smile

Cheers,
Cameron


User currently offlineFlighty From United States of America, joined Apr 2007, 8464 posts, RR: 2
Reply 23, posted (7 years 4 weeks 9 hours ago) and read 3943 times:

Not at all, I implying the PEK flight is definitely profitable, so that is helping. Source? Every aviation hobbyist, expert or management person in the USA.

Edit: come on, use your brain. I don't even know the loads on PEK but I will stand up and say it's profitable.

UA has some real turkeys out there in its network, too. UA should be more profitable than it is.

[Edited 2007-07-24 20:21:27]

User currently offlineBoston92 From United States of America, joined Aug 2006, 3390 posts, RR: 7
Reply 24, posted (7 years 4 weeks 9 hours ago) and read 3934 times:

Quoting Longhornmaniac (Reply 22):
That's not completely true. Passengers are but one factor that determine a flight's profitability. And even so, as FXRamper said, there are many factors that determine how big an impact passengers have on profitability: how much the seats are selling for?, how much the passengers are paying for (if they're paying at all)?, how much are people paying for premium seats (or are they)?, how's the cargo revenue? There is so much more that goes on behind the scenes, so to speak, that factors into a flight's possibility. The number of empty seats can be deceptive, as flights going out full can still lose money, and seemingly empty flights can still make money. It's all a big balancing act.

Right. My whole point was that ALL UA flights are a contribution to the airlines success this quarter, whether it be good or bad. There twice daily from SFO-RNO is contributing somehow, we don't need a source for that, which was my original point with FXRamper.



"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
25 Post contains images FXramper : Where did he go? So a route losing $20 million a month is helping the bottom line?
26 Longhornmaniac : Haha, wondering the exact same thing... Cheers, Cameron
27 UnknownUser : I bet they are disappointed they failed to meet your expectations. You seem to be the only one spreading flamebait, see below: What? What route is lo
28 Panamair : How did you get that? Operating Income = $537 million Interest Expense/Income = ($72 million) Net Income before Taxes = $465 million Income Tax = ($1
29 Boston92 : Yes...it is contributing to the bottom line. If you want to play around with my words, go ahead, and look like a fool. All I meant was that no matter
30 Laxintl : TED is considered part of its mainline operation. According to today Q2 conference call, they remain "very happy" with TED which provided the company
31 Jacobin777 : ..you have a point there, but I'm sure you know AA is the only legacy to not have gone into bankruptcy..... Had they gone into bk like every other ca
32 Post contains links United787 : Interesting information from Crain's on the specifics of the interior upgrades United is planning for the Economy Class. New entertainment systems inc
33 Cslusarc : That operating margin for the 2nd quarter of 10.30% was near the top of the pack of the major who have reported so far.
34 ATLAaron : It was actually mentioned on the conference call today something about no widebody order in the near term or something like that. Or free if you are
35 DC8FanJet : It is obvious that some of our A-netters aren't too good at reading financial repports, or only read what they want to see. The $192 million was allow
36 Post contains images FreequentFlier : Yes I love the know it alls who apparently know nothing. At least have somewhat of a clue if you're going to pretend like you do.
37 RDUDDJI : Let me guess, you went to the University of Enron... You might want a course in Financial Accounting before you go spewing off with your UA hatred. T
38 FlyIGuy : If your one that doesnt like outsourcing , then your gana love this. Delta Global's contract is up for running express ops at IAD at the end of August
39 Brons2 : I'm starting to think you don't know the difference between net and gross.
40 Post contains images Jacobin777 : ..I don't know if an Elite can reserve the seat in advance though.......
41 EA772LR : I tend to think that you may be right. I Could really see UA taking some 788's and 789's as well as some 748I's. I think they may hold out til the NG
42 FriendlySkies : I think that's very good news. While ORD has been somewhat of a mess during the transition to Mainline UA handling, I think in the end this will prov
43 Tommytoyz : The $192 Million is a non cash income item, per GAAP. If it were a liability to be paid, it would be in (parentheses). Even UA tries to make this as c
44 Jseesue : You're wrong, tommytoyz. If you read the article closely, you would have understood that the $192 million was a tax expense, which actually lowered t
45 Tommytoyz : Two more things: 1. The net profit margin was about 5.3% with the tax credit. Without it doesn't get over 1.6% 2. What is it with the hostility of U.S
46 Tommytoyz : Directly form the article: "The company recorded a non-cash income tax expense in the second quarter of 2007 of $192 million. The effective tax rate f
47 Tommytoyz : In reviewing the GAAP figures, I stand corrected. I was confused in that they used parenthesis and then didn't use them for the non cash item. No harm
48 Flightopsguy : Of course elites can reserve an explus seat in advance!
49 AirportPlan : No more gates but a new T2 food court will be happening very soon. A more comprehensive Terminal overhaul is in the works but it is still a couple of
50 Scorpy : Kudos to you for this post. Its rare to see on this site people acknowledging a mistake. scorpy
51 Tommytoyz : It's the only thing to do. I don't understand why people find it so difficult to say they made a mistake. I'm also stumped as to why many posters fin
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