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US Airways Posts 3Q Profits  
User currently offlineHPRamper From United States of America, joined May 2005, 3971 posts, RR: 8
Posted (6 years 6 months 2 days 18 hours ago) and read 3477 times:

TEMPE, Ariz., Oct. 25 /PRNewswire-FirstCall/ -- US Airways Group, Inc.
(NYSE: LCC) today reported its third quarter 2007 results. Net profit for the
third quarter was $177 million, or $1.87 per diluted share, compared to a net
loss of $78 million, or ($0.88) per share for the same period last year.
Excluding net special items of $8 million, the Company reported a net profit
of $185 million, or $1.96 per diluted share for its third quarter 2007. This
compares to a net profit excluding special items of $101 million, or $1.09 per
diluted share for the third quarter of 2006, which included $179 million of
special items. See the accompanying notes in the Financial Tables section of
this press release for a reconciliation of Generally Accepted Accounting
Principles (GAAP) financial information to non-GAAP financial information.

US Airways Group Chairman and CEO Doug Parker stated, "We are very pleased
to report a sharp improvement in our third quarter earnings. Customer demand
has kept pace with supply and the revenue environment has held up well in
spite of the credit market challenges and economic uncertainty experienced
during the quarter. We are particularly pleased to note that overall industry
capacity has remained in check during this period of recovery for our
industry, which is a notable change from the past.
"We are especially pleased with the improvement we've seen in operating
reliability as the result of our operational improvement plan. During
September 2007, more than 80 percent of our flights arrived on time and we
completed 99 percent of our flights as scheduled. This was our best on-time
performance so far in 2007 and the second best month since our merger in
September 2005. We have begun the fourth quarter well and are optimistic that
we are on track to regain our position as an industry leader in operational
reliability.
"Also during the third quarter, we completed the merger of our operating
certificates and US Airways now operates under a single operating certificate.
This accomplishment reflects two years of effort on the part of many employees
to combine policies, procedures, flight operating systems and maintenance
standards with the end goal to become one airline in the eyes of the Federal
Aviation Administration (FAA). Our team did a fantastic job, and we applaud
and recognize their accomplishment of making the cutover seamless for our
passengers.
"These results are due to the great work of our 37,000 employees who
remain committed to their airline while we complete our integration work and
transition back to consistent operating fundamentals. As a result of their
efforts, we are producing one of the top profit margins in our industry and
have accrued $55 million year-to-date for our employee profit sharing program.
"Looking into the current quarter, demand remains robust and the yield
environment also remains strong. Recent fuel price increases remain
problematic, but so long as our industry continues its recent capacity
restraint we are optimistic about prospects for 2008," concluded Parker.
Revenue and Cost Comparisons
Mainline passenger revenue per available seat mile (PRASM) was 10.85
cents, up 6.5 percent over the same period last year. Express PRASM was 19.31
cents, up 4.0 percent over the third quarter 2006. Total mainline and Express
PRASM for US Airways Group was 12.15 cents, which was up 5.6 percent over the
third quarter 2006 on a 2.9 decline in total available seat miles (ASMs).
Mainline cost per available seat mile (CASM) at US Airways Group was 11.11
cents, down 2.6 percent versus the same period last year on a decrease in
mainline capacity of 2.4 percent versus the third quarter of 2006. Excluding
fuel, unrealized and realized gains/losses on fuel hedging instruments, and
merger related transition expenses, mainline CASM was 7.68 cents, up 5.7
percent from the same period last year.
Chief Financial Officer Derek Kerr stated, "Our increase in CASM excluding
fuel and special items was largely associated with the implementation of our
operational improvement plan. We also pulled capacity down slightly to help
ease some of the northeast air traffic control issues and other operational
challenges. Because of the short-term nature of this capacity reduction, we
were not able to pull out all of the corresponding fixed costs and as a
result, experienced an increase in unit costs during the third quarter.
"While clearly not satisfied with our cost performance during the third
quarter, we took the steps necessary to improve our operational reliability.
We have seen a significant improvement in our operation and anticipate the
rate of increase in CASM (excluding fuel and special items) to be lower as we
move forward."
Liquidity
As of Sept. 30, 2007, the Company had $3.1 billion in total cash and
investments, of which $0.5 billion was restricted.
Second Quarter Special Items
During its third quarter, the Company recognized $8 million of net special
items. Expenses for the quarter included $17 million of merger-related
transition expenses and $4 million of special non-cash state tax provision
from the utilization of pre-acquisition net operating losses (NOL). These
expenses were offset by a $13 million non-cash credit for unrealized net gains
associated with the change in fair value of the Company's outstanding fuel
hedge contracts.
Other Notable Accomplishments

Operations
-- Marked a significant milestone by obtaining a single operating
certificate from the FAA. The single certificate allows US Airways to
operate as a single airline with one set of policies, procedures,
computer systems, maintenance and flight control systems.
-- Hired a new Chief Operating Officer (COO), Robert Isom, who has 15
years of airline experience and most recently served as Chief
Restructuring Officer of GMAC, LLC. As COO, Isom oversees the
airline's operations, including flight operations, inflight services,
maintenance and engineering, airport customer service, reservations,
cargo and the Express operation.
-- For the ninth consecutive year, Charlotte's line maintenance facility
earned the FAA's highest award for excellence in maintenance -- the
AMT Diamond Award.
-- The airline maintenance and reliability groups set a new V2500 engine
operating hours performance record with the completion of more than
30,000 flight hours.
-- Announced plans to offer recall to all pilots furloughed by pre-merger
US Airways, move some 140 pilots at regional partners as part of the
jets for jobs program back to mainline, and hire an additional 350
pilots by the end of 2008.


Marketing
-- Awarded the right to fly the first ever route between Philadelphia and
the Chinese capital city of Beijing by the U.S. Department of
Transportation (DOT). The daily service to China will begin in 2009.
The flight will originate at the airline's hub in Charlotte, N.C.
-- Announced new codeshare agreement with Air New Zealand, which gives
passengers the ability to connect seamlessly between the United
States, New Zealand, Australia, and the Pacific Islands from Los
Angeles and San Francisco.
-- Launched a mobile-device friendly version of usairways.com allowing
customers to search for flights, purchase tickets, check flight
status, make changes to an existing reservation, and access their
Dividend Miles account conveniently with a handheld mobile device.


Analyst Conference Call/Webcast Details
US Airways will conduct a live audio webcast of its earnings call today at
12:30 p.m. EDT, which will be available to the public on a listen-only basis
at http://www.usairways.com under the About US >> Investor Relations tab. An
archive of the call/webcast will be available in the Public/Investor Relations
portion of the Web site through Nov. 25, 2007.
The airline will also update its investor relations guidance on its Web
site (http://www.usairways.com). Information that could be updated includes
cost per available seat mile (CASM) excluding fuel and transition expenses,
fuel prices and hedging positions, other revenues, estimated interest
expense/income and merger related transition expense guidance. The investor
relations update page also includes the airline's capacity, fleet plan for
2007 and estimated capital spending for 2007.

22 replies: All unread, jump to last
 
User currently offlineCharlipr From Puerto Rico, joined Dec 2005, 340 posts, RR: 1
Reply 1, posted (6 years 6 months 2 days 18 hours ago) and read 3405 times:

Quoting HPRamper (Thread starter):
"Also during the third quarter, we completed the merger of our operating
certificates and US Airways now operates under a single operating certificate.
This accomplishment reflects two years of effort on the part of many employees
to combine policies, procedures, flight operating systems and maintenance
standards with the end goal to become one airline in the eyes of the Federal
Aviation Administration (FAA).

Are they using the "Cactus" call-sign across the entire network yet?


User currently offlineFokkerf28 From United States of America, joined Feb 2004, 151 posts, RR: 1
Reply 2, posted (6 years 6 months 2 days 17 hours ago) and read 3344 times:
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Quoting Charlipr (Reply 1):
Are they using the "Cactus" call-sign across the entire network yet?

No, not until the pilots group come to an agreement.

It's amazing how we show a profit yet our service ranks consistantly at the very bottom.

cheers..........


User currently offlineEXAAUADL From , joined Dec 1969, posts, RR:
Reply 3, posted (6 years 6 months 2 days 16 hours ago) and read 3281 times:

Once again another carrier reports better profits and certainly a better margin than AMR........I think in retrospect AMR should have field bankruptcy and dumped their pension. There is clearly no revenue hit from filing bankruptcy, if it is done properly with a good reorg plan.

User currently offlineGigneil From United States of America, joined Nov 2002, 16345 posts, RR: 86
Reply 4, posted (6 years 6 months 2 days 14 hours ago) and read 3134 times:

Quoting Fokkerf28 (Reply 2):
It's amazing how we show a profit yet our service ranks consistantly at the very bottom.

It certainly supports the well documented theory that service is third hat to schedule and price here in the United States.

NS


User currently offlineSh0rtybr0wn From United States of America, joined Aug 2007, 528 posts, RR: 0
Reply 5, posted (6 years 6 months 2 days 14 hours ago) and read 3089 times:

Quoting Gigneil (Reply 4):
It certainly supports the well documented theory that service is third hat to schedule and price here in the United States.

Thats only because there is no service in America. If every airline is full of underpaid, surly, ill-tempered FAs who dont smile much, service is the same across the board, and doesn't figure in the equation.

Good for USAirways with making those profits. There doing many things right; now they need a massive customer service campaign, the kind that will win them the Best American Airline of the Year Award. A better attitude and enhanced customer experience could make them even more money.


User currently offlineMah584jr From United States of America, joined Mar 2006, 500 posts, RR: 0
Reply 6, posted (6 years 6 months 2 days 13 hours ago) and read 2979 times:

Quoting EXAAUADL (Reply 3):
I think in retrospect AMR should have field bankruptcy and dumped their pension.

I think part of this has do with the fact that AMR wants to keep it's status as the only legacy not to got into bankruptcy. This could show a bit of escalation of commitment.

Quoting Sh0rtybr0wn (Reply 5):
If every airline is full of underpaid, surly, ill-tempered FAs who dont smile much

I definitely know what you mean, but I recently had a very nice experience with DL's FA's.

Congrats to US. It seems like they keep heading in a good direction.


User currently offlineN710PS From United States of America, joined Oct 2006, 1166 posts, RR: 4
Reply 7, posted (6 years 6 months 2 days 12 hours ago) and read 2901 times:

Quoting EXAAUADL (Reply 3):
Once again another carrier reports better profits and certainly a better margin than AMR........I think in retrospect AMR should have field bankruptcy and dumped their pension. There is clearly no revenue hit from filing bankruptcy, if it is done properly with a good reorg plan.

Spoken by someone who clearly has one of several things going on. 1.)head up their ass 2.) They are in corperate or they are an airline investor or 3.) They have never worked a single day in the industry or 4.) is a teenage arm chair CEO with no experince on their own. Anyway, here is to big momma carrier and her continued success!



There is plenty of room for Gods animals, right next to the mashed potatoes!
User currently offlineF9Animal From United States of America, joined Dec 2004, 4947 posts, RR: 28
Reply 8, posted (6 years 6 months 2 days 11 hours ago) and read 2869 times:

Congrats to US Airways! The merger is tough, but the results to the bottom line are good! And how many thought the merger was going to be the doom?


I Am A Different Animal!!
User currently offlineWhappeh From United States of America, joined Mar 2006, 1562 posts, RR: 2
Reply 9, posted (6 years 6 months 2 days 11 hours ago) and read 2869 times:

Great news to US Airways. I hope they keep on keepin' on.


-Travel now, journey infinitely.
User currently offlineMaverick623 From United States of America, joined Nov 2006, 5442 posts, RR: 6
Reply 10, posted (6 years 6 months 2 days 11 hours ago) and read 2856 times:

Quoting EXAAUADL (Reply 3):
Once again another carrier reports better profits and certainly a better margin than AMR........I think in retrospect AMR should have field bankruptcy and dumped their pension. There is clearly no revenue hit from filing bankruptcy, if it is done properly with a good reorg plan.

This is exactly what is wrong with bankruptcy law today. The ones who drive the airline into the ground get to keep their benefits and perks, while the average joe who actually works to make the airline better gets tossed out the back with the trash.



"PHX is Phoenix, PDX is the other city" -777Way
User currently offlineGigneil From United States of America, joined Nov 2002, 16345 posts, RR: 86
Reply 11, posted (6 years 6 months 2 days 10 hours ago) and read 2770 times:

Quoting Sh0rtybr0wn (Reply 5):
Thats only because there is no service in America. If every airline is full of underpaid, surly, ill-tempered FAs who dont smile much, service is the same across the board, and doesn't figure in the equation.

Every attempt to offer differentiated services in this country has failed. Virgin America will do fine, but it won't be because they're fantastic. They'll offer competitive price and schedule.

NS


User currently offlineHPRamper From United States of America, joined May 2005, 3971 posts, RR: 8
Reply 12, posted (6 years 6 months 2 days 10 hours ago) and read 2747 times:

Quoting Sh0rtybr0wn (Reply 5):
Good for USAirways with making those profits. There doing many things right; now they need a massive customer service campaign, the kind that will win them the Best American Airline of the Year Award.

If only it were so easy to give thousands of CSRs and FAs an attitude adjustment. The only way to do away with the poor customer service would be to lay off all those disgruntled employees.


User currently offlineNzrich From New Zealand, joined Dec 2005, 1516 posts, RR: 1
Reply 13, posted (6 years 6 months 2 days 8 hours ago) and read 2626 times:

Quoting Maverick623 (Reply 10):
This is exactly what is wrong with bankruptcy law today. The ones who drive the airline into the ground get to keep their benefits and perks, while the average joe who actually works to make the airline better gets tossed out the back with the trash.

Yes but there is 55 million to be shared in the profit sharing !!! That would sound good to me as a employee .. Sure wish my airline did that ..In saying that i have not had a pay cut so its only getting back a bit of what they lost .. But still its better than nothing and 55 million is quite a bit to be shared ..



"Pride of the pacific"
User currently offlineNzrich From New Zealand, joined Dec 2005, 1516 posts, RR: 1
Reply 14, posted (6 years 6 months 2 days 8 hours ago) and read 2619 times:

Quoting HPRamper (Reply 12):
If only it were so easy to give thousands of CSRs and FAs an attitude adjustment. The only way to do away with the poor customer service would be to lay off all those disgruntled employees.

Forgot to say congrats to the staff and management for the result !!

Oh also its amazing what you say about poor service as this airline gave me the best service when i was flying around in America .. Just goes to show there are great employees there too !!!!



"Pride of the pacific"
User currently offlineGift4tbone From United States of America, joined Dec 2004, 612 posts, RR: 0
Reply 15, posted (6 years 6 months 2 days 8 hours ago) and read 2602 times:

Quoting Nzrich (Reply 13):
55 million

55 million is what we were given for the entire year of 2006, so if in the 4th quarter of 2007, we see more profit, the profit sharing goes up! I'm hoping we can get a cool 75$ mil for the year, that would be a third more or there abouts, compared to what we received last year!

-Tony@PVD



Top 3 airports: PVD 26.0%(115 flights), PHL 15.6%(69 flights), PHX 12.0%(53 flights)
User currently offlineMaverick623 From United States of America, joined Nov 2006, 5442 posts, RR: 6
Reply 16, posted (6 years 6 months 2 days 1 hour ago) and read 2405 times:

Quoting Nzrich (Reply 13):
Yes but there is 55 million to be shared in the profit sharing !!! That would sound good to me as a employee .. Sure wish my airline did that ..In saying that i have not had a pay cut so its only getting back a bit of what they lost .. But still its better than nothing and 55 million is quite a bit to be shared ..

I was actually referring to the post about AMR going bankrupt just to screw those with a pension. Yea, the profit sharing is pretty cool.



"PHX is Phoenix, PDX is the other city" -777Way
User currently offlineHPRamper From United States of America, joined May 2005, 3971 posts, RR: 8
Reply 17, posted (6 years 6 months 2 days ago) and read 2383 times:

Quoting Gift4tbone (Reply 15):
55 million is what we were given for the entire year of 2006, so if in the 4th quarter of 2007, we see more profit, the profit sharing goes up! I'm hoping we can get a cool 75$ mil for the year, that would be a third more or there abouts, compared to what we received last year!

We at West ramp will be getting WAY more than last year, as for 2006 we only got a prorated profit share since we were not under the US contract the whole year. Looking good for this year, and of COURSE we will make a profit 4Q  Smile


User currently offlineQantas787 From , joined Dec 1969, posts, RR:
Reply 18, posted (6 years 6 months 1 day 22 hours ago) and read 2171 times:

Quoting Gigneil (Reply 11):
Virgin America will do fine, but it won't be because they're fantastic. They'll offer competitive price and schedule.

Why do you automatically think Virgin will do fine? Excuse me, but you know nothing of the sort. It may, but please don't quote as if you know the future.


User currently offlineGilesdavies From United Kingdom, joined Dec 2003, 2987 posts, RR: 2
Reply 19, posted (6 years 6 months 1 day 20 hours ago) and read 2095 times:

Great to hear this news and see US Airways is still in great shape...

Even though it would be nieve to think everything is perfect at US Airways, they are definately making changes for the better!

(Its also nice to see they are getting positive feedback from A.net users, as I often read the opposite on here!)  Wink


User currently offlineSJUSXM From United States of America, joined Aug 2006, 293 posts, RR: 0
Reply 20, posted (6 years 6 months 1 day 11 hours ago) and read 1797 times:

Quoting EXAAUADL (Reply 3):
........I think in retrospect AMR should have field bankruptcy and dumped their pension

AA asked all of their employees, what was one thing they most wanted to be kept, and the pensions won out. I wonder if that had anything to do with the decision to not dump them.



AT7, ER3, ER4, ER5, CR7, E70, E75, F100, M82, M83, 722, 732, 738, 752, 762, 763, AB6, 320, 321, 772, 77W
User currently offlineRbgso From United States of America, joined Jun 2006, 585 posts, RR: 0
Reply 21, posted (6 years 6 months 1 day 11 hours ago) and read 1766 times:

Quoting Fokkerf28 (Reply 2):
It's amazing how we show a profit

Even a broken clock is correct twice a day.......


User currently offlineMaverick623 From United States of America, joined Nov 2006, 5442 posts, RR: 6
Reply 22, posted (6 years 6 months 1 day 9 hours ago) and read 1701 times:

Quoting Gilesdavies (Reply 19):
Even though it would be nieve to think everything is perfect at US Airways, they are definately making changes for the better!

I was thinking so too......

Until I had three back to back flights sit in the bullpen for over an hour because there were no open gates to put them in. Totally ridiculous.



"PHX is Phoenix, PDX is the other city" -777Way
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