USAirways Posts A Loss Of 567 Million — Civil Aviation Forum

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USAirways Posts A Loss Of 567 Million

United1 From United States of America, joined Oct 2003, 5337 posts, RR: 8
Posted (4 years 10 months 5 days 16 hours ago) and read 2316 times:

http://biz.yahoo.com/bw/080722/20080722005475.html?.v=1

Operating loss was 101 million.
Ends the quarter with 2.8 billion in total cash (2.3 unrestricted)

Semper Fi

10 replies: All unread, jump to last

UN_B732 From United States of America, joined Jul 2001, 4286 posts, RR: 5
Reply 1, posted (4 years 10 months 5 days 16 hours ago) and read 2317 times:

Good cash situation; nasty operating loss..

-A

What now?

LAXintl From United States of America, joined May 2000, 22053 posts, RR: 51
Reply 2, posted (4 years 10 months 5 days 13 hours ago) and read 2179 times:

While the headline numbers look grim as they included one-off charges, I'm am really (pleasantly) surprised at the minimal operating losses US Air and others posting for Q2.

Who knows , we could be looking for profits in Q3 possibly.

And yes US cash position is indeed good.

From the desert to the sea, to all of Southern California

IliriBDL From Germany, joined May 2007, 1205 posts, RR: 15
Reply 3, posted (4 years 10 months 5 days 12 hours ago) and read 2000 times:

Quoting LAXintl (Reply 2):
Who knows , we could be looking for profits in Q3 possibly.

Could happen, you never know.

So CO and US had the least losses when compared to the other big airlines?

delta.com

United1 From United States of America, joined Oct 2003, 5337 posts, RR: 8
Reply 4, posted (4 years 10 months 5 days 12 hours ago) and read 1971 times:

Quoting IliriBDL (Reply 3):
So CO and US had the least losses when compared to the other big airlines?

Courtesy Panamair ....

All numbers excluding special charges:

Operating Profit/Loss: Operating Margin:

DL: +$213m; +3.9%
B6: +$21m; +2.4%
CO: - $13m; - 0.7%
UA: -$87m; -1.6%
AA; - $126m; -2.0%
US: -$70m; -2.1%

Net Profit / Loss; Margin:

DL: +$137m; +2.5%
CO: -$25m; -0.6%
B6: -$7m; -0.8%
UA: -$151m; -2.8%
US: -$101m; -3.1%
AA: -$284m; -4.6%

Semper Fi

Boston92 From United States of America, joined Aug 2006, 3390 posts, RR: 7
Reply 5, posted (4 years 10 months 5 days 11 hours ago) and read 1889 times:

Quoting IliriBDL (Reply 3):
So CO and US had the least losses when compared to the other big airlines?

I would put United's Q2 results better than US

"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"

MMEPHX From , joined Dec 1969, posts, RR:
Reply 6, posted (4 years 10 months 5 days 9 hours ago) and read 1727 times:

Quoting United1 (Reply 4):
Courtesy Panamair ....

All numbers excluding special charges:

Operating Profit/Loss: Operating Margin:

DL: +$213m; +3.9%
B6: +$21m; +2.4%
CO: - $13m; - 0.7%
UA: -$87m; -1.6%
AA; - $126m; -2.0%
US: -$70m; -2.1%

Net Profit / Loss; Margin:

DL: +$137m; +2.5%
CO: -$25m; -0.6%
B6: -$7m; -0.8%
UA: -$151m; -2.8%
US: -$101m; -3.1%
AA: -$284m; -4.6%

Good summary. What is interesting to note around these numbers is that they are not neccessarily in disaster terroritory (DL is in fact superb!) particularly on the operations. Though obviously not good either. Most all of these carriers have decent cash positions and with the recent announcements of planned cutbacks, the various ancillary fees and the stabilization (at least for the time being) of oil (OK ~$130/bbl is not a good price) etc. could there be some hope that wholesale closures and further draconian cuts might just be avoidable and airlines could be gaining the ability to control prices in the foreseeable future?

MasseyBrown From United States of America, joined Dec 2002, 4725 posts, RR: 7
Reply 7, posted (4 years 10 months 4 days 22 hours ago) and read 1482 times:

Quoting UN_B732 (Reply 1):
Good cash situation; nasty operating loss..

Interesting comment during the conference call: If US accounted for hedging gains the way "some other airlines do" they would have shown a profit. US only takes profits on hedges related to the period; they do NOT use mark to market accounting to monetize future unrealized gains.

Consilivm: Cave ne nothi te vexant

MasseyBrown From United States of America, joined Dec 2002, 4725 posts, RR: 7
Reply 8, posted (4 years 10 months 4 days 15 hours ago) and read 1337 times:

Quoting MasseyBrown (Reply 7):
they would have shown a profit.

Operating profit, that is, not counting goodwill write-offs.

Consilivm: Cave ne nothi te vexant

AirLittoral From France, joined Sep 2006, 108 posts, RR: 0
Reply 9, posted (4 years 10 months 4 days 15 hours ago) and read 1310 times:

"The Company reported a second quarter 2008 net loss of $567 million, or $6.16 per share, which included net special items of $466 million. The largest special item was a $640 million non-cash impairment charge related to the write down of goodwill and spare parts."

So...is that charge going to be recurrent over the next quarters? Also, quite re-assuring because that bit doesn't affect their cash situation. It's not like they were bleeding $567m of cash per quarter.

MasseyBrown From United States of America, joined Dec 2002, 4725 posts, RR: 7
Reply 10, posted (4 years 10 months 4 days 15 hours ago) and read 1263 times:

Quoting AirLittoral (Reply 9):
So...is that charge going to be recurrent over the next quarters?

The charge included a write off of $622 million, representing all the goodwill on the books. There is no more to write off, so that particular portion of the charge cannot recur.

There are some other intangibles, which could be subject to amortization in the future.

Consilivm: Cave ne nothi te vexant

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