LAXintl From United States of America, joined May 2000, 26834 posts, RR: 50
Reply 1, posted (5 years 10 months 1 week 4 days 22 hours ago) and read 3659 times:
I must say, they now have gone overboard posting these formal press releases on information that they dont even need to make public.
Anyhow they are making steady improvement which is good. Their CASM continues to drop as their cost base spreads across a larger operation and with less start up burdens being down to 9.46 cents in Q1 from about 11 cents in Q4.
From the desert to the sea, to all of Southern California
Revenue: $100.1 million
Operating Expenses: $132.4 million
Operating Loss: -$31.6 million
ASMs (000): 1,398,334
Load Factor: 73.1%
Operating Margin: -31.3%
So... They flew about 16% more miles and made about 9% less revenue. I don't know if that's typical... I would guess most airlines flew fewer miles in Q1 than Q4, but VX is still expanding and they added BOS in Q1. The operating loss went up by $4 million, which is a reversal of the downward trend they had been seeing every quarter, but I think this is a revenue issue, as the CASM went down more than 2 cents. If they have a good summer travel season, that might help on the revenue side, especially if the costs continue to come down.
All in all, seems like a mixed bag, but to me the big issue is that the cash dwindled from $68 million to $38 million, so depending on the Q2 results, how much cash do they have left, because they can't continue losing $20-30 million a quarter for much longer, unless an investor throws in more money.
Pgtravel From United States of America, joined Oct 2005, 446 posts, RR: 2
Reply 3, posted (5 years 10 months 1 week 4 days 22 hours ago) and read 3579 times:
Quoting LAXintl (Reply 1): Their CASM continues to drop as their cost base spreads across a larger operation and with less start up burdens being down to 9.46 cents in Q1 from about 11 cents in Q4.
I show op expenses for Q1 of $132,351,000 over ASMs of 1,471,970,049. That's actually 8.99 cents. Am I missing something? Those are good CASM improvements, though stage length increased 8%, so we need to remember the increase isn't as good as it looks on the surface once you adjust.
Revenues on the other hand are dismal. Op revenues of $100,789,000 are well below Q4 yet there are 20% higher ASMs. That looks like a terrible 6.85 cent RASM, way below Q4's 8.97.
Biggest concern is cash. At the end of Q4 they had $68m and now they have $38m. Not good.
Luv08 From United States of America, joined May 2009, 128 posts, RR: 0
Reply 6, posted (5 years 10 months 1 week 4 days 20 hours ago) and read 3392 times:
Don't worry about VX only having 38 million in the bank! I am sure Sir Richard will just Western Union some money right over like usual.... Wait a minute the govermnent already figured that one out! On a serious not it doesn't look good at all for them. I wish them the best.....
SANFan From United States of America, joined Aug 2006, 5780 posts, RR: 12
Reply 8, posted (5 years 10 months 1 week 4 days 12 hours ago) and read 3136 times:
Quote: Virgin America is one of the fastest growing U.S. carriers of all time
Does anyone else on board do a double take every time Mr Cush allows this statement to be printed in his press releases?
For a carrier that has been flying since August of 2007 (that's about 22 months now) to be serving a whole NINE cities with a whopping 13 different routes sounds to me more like trying to keep up with the turtles. "One of the fastest growing U.S. cx of all time"? Come on!
Let's see, over all, that's averaging about 1 new route every 2 months. And, considering they essentially started with 3 cities -- SF, LA, NY -- they've added 6 new cities since, or a new city about every 4 months (but since Oct 07 they've added only 4 new cities at the blistering rate of 1 every 5 months.)
Just for comparison, here are some numbers on the other 2 most recent new U.S. carriers. SkyBus (SX), which of course only lasted 10 months, at its peak, served about 16 cities over about 26 different routes. And Express Jet (XE), which lasted 17 months from 4/07 thru 8/08, served about 24 cities at its peak, on about 60 routes! (I do realize the definition/interpretation of the whole XE thing is subject to debate.) I don't have enough info or knowledge of Indi Air's short-lived existence or I would include it as well.
I imagine Virgin is building some assumptions into the statement. Maybe it's: "One of the fastest growing (EXISTING) U.S. cx..." Perhaps they feel safe since the statement says "ONE of".
In any case, I raise and wave the "BS" flag Mr Cush!
BestWestern From Hong Kong, joined Sep 2000, 7675 posts, RR: 57
Reply 13, posted (5 years 10 months 1 week 4 days 4 hours ago) and read 2857 times:
Biggest issue is their revenues - with an operating margin of -31% in Q1 - all focus needs to be on increasing average fares, and protecting their load factors. Their Break Even load factor in Q1 was 96%.
Enilria From Canada, joined Feb 2008, 8201 posts, RR: 15
Reply 19, posted (5 years 10 months 1 week 3 days 10 hours ago) and read 2490 times:
Quoting Lrdc9 (Reply 15): What is the "Direct Air" agreement please?
I think they will make it, IMHO. They seems to be strengthening . . .
I agree with you.
Direct Air is a scheduled charter company like Jet America that flies to/from Myrtle Beach and such. They may be associated with Myrtle Beach Express, but I'm not that educated about these second tier companies.
Anyway, like Jet America, Direct Air has no operating certificate so they have to wet-lease airplanes from "real" airlines. When VX's deliveries were piling up and they were still not approved to fly they were desperately trying to find some way to make some kind of money. I'm not sure if it pre-dated their own branded service, but around that same time they put 2 or 3 aircraft under a wet-lease with Direct Air to get them flying.
LGA777 From United States of America, joined Jul 2003, 1149 posts, RR: 18
Reply 21, posted (5 years 10 months 1 week 2 days 17 hours ago) and read 2248 times:
With LF's of 85 pct in April and 84 pct in May even with the increases in fuel prices I would think that will have a big effect on VA's Q2's financial performance.
I took my first two flights on VA in Feb JFK-LAS-JFK, and had two GREAT flights, very impressed with their product. They offer a lot of products for an extra fee, but in way you don't feel nickel and dimed. This ancilary revenue is bound to help their bottom line and the higher the load factor, the more people buying movies, food, cocktails. etc.
MarcoPoloWorld From United States of America, joined Mar 2008, 674 posts, RR: 0
Reply 22, posted (5 years 10 months 1 week 2 days 12 hours ago) and read 2144 times:
Quoting Luv08 (Reply 6): Don't worry about VX only having 38 million in the bank! I am sure Sir Richard will just Western Union some money right over like usual.... ...
And Western Union is a US-owned corporation, so all-in-all, it's more business here either way you look at it! And with the exorbitant fees that WU charges, a $200M transfer should yield about $28M in fees for WU.... not bad!