Laxintl From United States of America, joined exactly 13 years ago today! , 22059 posts, RR: 51 Posted (5 years 10 months 3 days 8 hours ago) and read 1685 times:
With Airtran posting record profit for Q2, and enjoying strong yields, might be another valid reason to agree with the merger.
Quote: Midwest Air Group 2Q Profit Falls
Thursday July 26,
Midwest Air Group 2Q Profit Falls 45 Percent on Weaker Fare Trends
MILWAUKEE (AP) -- Midwest Air Group Inc. said Thursday its second-quarter profit fell 45 percent, hurt by weakening fare trends and tougher fuel costs.
Quarterly earnings dropped to $4.9 million, or 19 cents per share, from $8.8 million, or 39 cents per share, in the prior-year period. Revenue rose to $194.5 million from $176.9 million.
The company said its yield -- an industry gauge that tracks fare trends -- fell 5.3 percent amid industrywide pricing weakness. Its aircraft fuel and oil costs, meanwhile, jumped to $66.4 million from $60.6 million. They are Midwest Air Group's biggest expenses.
Midwest Air Group Chairman and Chief Executive Timothy E. Hoeksema said in a statement that despite the challenging pricing environment, travel demand remained strong during the second quarter. Passenger traffic grew 15.8 percent during the quarter.
From the desert to the sea, to all of Southern California
Laxintl From United States of America, joined exactly 13 years ago today! , 22059 posts, RR: 51 Reply 7, posted (5 years 10 months 3 days 6 hours ago) and read 1523 times:
AirTran Holdings Inc., Comments on Midwest Air Group Second Quarter Earnings
Quote: AirTran Holdings Inc., Comments on Midwest Air Group Second Quarter Earnings
Thursday July 26
ORLANDO, Fla., July 26 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc., the parent of AirTran Airways, issued the following comments in response to Midwest Air Group's performance for the second quarter of 2007.
"Midwest lowered the bar in June when it said it would fail to meet already modest earnings projections," said Joe Leonard, AirTran Airways chairman and chief executive. "The company's actual results fail to meet even those diminished expectations. Midwest blames its troubles on a weak industry- wide pricing environment, yet AirTran Airways and other airlines have improved profitability in the same challenging conditions.
"Midwest management refuses to recognize that its business plan is fundamentally flawed," Leonard said, "Midwest's core operating profitability is deteriorating, and they irresponsibly ignore the expressed will of their shareholders. The owners of most Midwest shares support AirTran Airways' plan to combine two proud airlines into a single, national, low-cost carrier with the ability to thrive in a fiercely competitive marketplace."
The following shows Midwest's declining performance in the second quarter:
-- Net Income down 45 percent to $4.9 million
-- Earnings per Share down 51 percent to 19 cents
-- Passenger Revenue per Available Seat Mile down 3 percent
-- Rising Non-Fuel Unit Costs
AirTran717 From United States of America, joined Aug 2006, 746 posts, RR: 4 Reply 8, posted (5 years 10 months 3 days 5 hours ago) and read 1496 times:
Quoting JBo (Reply 6): Damn straight. A profit is a profit.
While I agree with you and am not going to begin the usual YX/FL runaround...
If you make $100 and your buddy makes $10,000... which one would you rather be? You or your buddy? A profit is a profit, yes. But there's more to it than just saying, "well I made a little money anyway, so everything is fine"... especially if you owe $75 in overhead and he only owes $5000... Understand, folks, my numbers are just examples to make a point, NOT based on quotes, comments, or figures from ANY official source... that way I can't be misquoted or asked where I got my facts. LOL
JBo From Sweden, joined Jan 2005, 2279 posts, RR: 0 Reply 11, posted (5 years 10 months 3 days 4 hours ago) and read 1423 times:
Quoting AirTran717 (Reply 8):
If you make $100 and your buddy makes $10,000... which one would you rather be?
I don't disagree with you, and your points are valid as well.
As subsequent posts between yours and this have detailed, it's ultimately in the eye of the beholder how this profit is regarded.
Alot of this, too, is based on what a company, investment firms, etc., place on expectations of a company's performance. If expectations are held low, it looks like a better performance than when the expectations are held higher.
It's a tricky thing ... I'd be interested to see what the latest quarterly results are for other public airlines, and what those results looked like against expectations. Sounds like a job for Knope, lol.
I'd take the awe of understanding over the awe of ignorance any day.
Alias1024 From United States of America, joined Oct 2004, 2644 posts, RR: 2 Reply 12, posted (5 years 10 months 3 days 4 hours ago) and read 1380 times:
Well, that was certainly a smug response from AirTran. Perhaps Midwest would have had a better quarter if they hadn't been forced to spend $2.9 million fighting the AirTran takeover attempt, and management could have focused on improving their airline instead of fighting AirTran.
It is a mistake to think you can solve any major problems with just potatoes.
RJNUT From United States of America, joined Dec 1999, 1166 posts, RR: 0 Reply 13, posted (5 years 10 months 3 days 3 hours ago) and read 1343 times:
It is not Failing people.!!! .most of the expansion of their strategic plan was barely in place until the middle of the 1st quarter..thats impressive to have that many new routes and still have 83per cent load factor...usually it takes quite a while to build up new markets.,..Talk about bullseyes on new markets!!! Thats an example of how Wall Street analysts and Air TRan distort everything!
Granted, the last guy just wanted to tee off on him instead of asking a question, but the first woman who asked the questions really pressed him on what the Management sees in their numbers that purportedly creates value that exceeds what FL is offering. The [non-]answer to that was pretty telling IMHO.