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2nd Quarter Earnings - Who's Winning?  
User currently offlineBistro1200 From United States of America, joined Oct 2003, 337 posts, RR: 4
Posted (7 years 3 months 1 hour ago) and read 2288 times:

From http://biz.yahoo.com/ap/070724/earns_airlines.html?.v=2

Among other U.S. carriers in the latest quarter, American Airlines parent AMR Corp. posted a $317 million profit last week, Delta Air Lines Inc. earned $1.77 billion or $274 million excluding bankruptcy-related items, Southwest Airlines Co. netted $278 million and Continental Airlines Inc. earned $228 million.

Ranked by Q2 earnings
1) AA: $317
2) WN: $278
3) DL: $274 ($1.77 Billion before bankruptcy costs)
3) UA: $274 (But added $895 million to the cash balance, now at $5.1 Billion)
5) CO: $228

Yet to report:
NW
US


Measure to the millimeter, mark with a crayon, cut with an axe.
7 replies: All unread, jump to last
 
User currently offlineRFields5421 From United States of America, joined Jul 2007, 7607 posts, RR: 32
Reply 1, posted (7 years 3 months 1 hour ago) and read 2279 times:

The oil companies are winning

User currently offlineCO787EWR From United States of America, joined Jul 2007, 222 posts, RR: 0
Reply 2, posted (7 years 3 months 1 hour ago) and read 2235 times:

Quoting RFields5421 (Reply 1):

lol they probaly are


User currently offlineLaxintl From United States of America, joined May 2000, 25737 posts, RR: 50
Reply 3, posted (7 years 3 months ago) and read 2222 times:

It is much more meaningfull if earnings are viewed on a per-share basis or margin instead of just pure dollars. One needs some method to correct for companies which are different sizes.

For instance CO's $228m earnings which equal $2.03 per share is significantly better then larger AMRs $317m which equals only $1.08 per share.

Earning per share:
CO - $2.03
UA - $1.83
AA - $1.08
DL - $0.70 (excluding special re-org charges)
WN - $0.36
B6 - $0.11


By margin
WN - 10.8%
CO - 6.1%
DL - 5.5%
AA - 5.4%
UA - 5.3%
B6 - 2.9%



From the desert to the sea, to all of Southern California
User currently offlineSESGDL From United States of America, joined Jan 2001, 3489 posts, RR: 10
Reply 4, posted (7 years 2 months 4 weeks 1 day 16 hours ago) and read 2072 times:

Quoting Laxintl (Reply 3):
It is much more meaningfull if earnings are viewed on a per-share basis or margin instead of just pure dollars. One needs some method to correct for companies which are different sizes.

As noted, profit margins tend to be a better indicator of financial stability, as AA is much larger than say B6 and therefore should have larger earnings. Any profit in the US airline industry is good, but the larger the profit the better. The numbers posted are strong, WN's is still impressive despite all the statements that they'll be in trouble when the hedges run out. B6's margin are kinda worrisome to me, they should be doing better; their earnings were, however, inline with analyst's estimates.

It will be interesting to see NW's results when they are posted, as they have suffered somewhat from numerous flight cancellations last month and just starting to again this month.

Jeremy


User currently offlineHPAEAA From United States of America, joined May 2006, 1024 posts, RR: 1
Reply 5, posted (7 years 2 months 4 weeks 1 day 16 hours ago) and read 2060 times:

anyone know the RASM's per carrier? Many seem to think that might be the best way to adjust for size.. although I think there's a way to derive it from the margins, I just can't remeber how...


Why do I fly???
User currently offlineLaxintl From United States of America, joined May 2000, 25737 posts, RR: 50
Reply 6, posted (7 years 2 months 4 weeks 1 day 16 hours ago) and read 2044 times:

Quoting HPAEAA (Reply 5):
Many seem to think that might be the best way to adjust for size

To me RASM are only good if one is comparing like companies. A multi-class network carrier should always be able to drive a RASM premium over an LCC.

Even amongst majors, RASM comparisons get skewed due regional and seasonal variations dependent on where the carrier might have large concentrations of flying.

Ultimately, margin to me is one of the best indicators as it clearly shows how the business manages its cost versus revenue.



From the desert to the sea, to all of Southern California
User currently offlineBobnwa From United States of America, joined Dec 2000, 6490 posts, RR: 9
Reply 7, posted (7 years 2 months 3 weeks 2 days 6 hours ago) and read 1823 times:

Quoting Bistro1200 (Thread starter):
Among other U.S. carriers in the latest quarter, American Airlines parent AMR Corp. posted a $317 million profit last week, delta Air Lines Inc. earned $1.77 billion or $274 million excluding bankruptcy-related items, Southwest Airlines Co. netted $278 million and Continental Airlines Inc. earned $228 million.

Ranked by Q2 earnings
1) AA: $317
2) WN: $278
3) DL: $274 ($1.77 Billion before bankruptcy costs)
3) UA: $274 (But added $895 million to the cash balance, now at $5.1 Billion)
5) CO: $228

Yet to report:
NW
US

All the reports are in, and the rankings are
1.AA-$317
2.WN-$278
3.DL-$274 ($1.77Billion before bankruptcy costs)
4.UA-$274 (added $895 million to cash balance, now at $5.1 billion
5.NW-$273 (2.15Billion before bankruptcy costs)
6.US-$263
7.CO-$228

Note to WorldTraveler: Northwest was not ashamed to report these earnings. Also their operating margin was 8.8% second only to WN and much higher than any other legacy carrier including DL.


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