* The Company reported a net loss of $80 million, or ($0.60) per share. This compares to a net loss of $866 million, or ($8.46) per share for the same period last year. Excluding special items, the Company reported a net loss of $110 million, or ($0.83) per share versus a net loss excluding special items of $243 million, or ($2.36) per share for the same period last year.
* The effects of fuel hedging significantly impacted the third quarter 2009 results. Excluding special items and net realized losses/gains on fuel hedging transactions, the Company reported operating income of $23 million and a net loss of $60 million for its 2009 third quarter. This compares to a third quarter 2008 operating loss of $261 million and net loss of $311 million as measured on the same basis.
* The Company’s a la carte revenue initiatives continue to produce impressive results and generated approximately $110 million in revenue during the third quarter. With the previously announced changes to this program, the Company now estimates that these programs will generate more than $500 million in ancillary revenue on an annualized basis.
* The Company continues to run an efficient and on-time airline. On a year-to-date basis US Airways ranks first among the major network carriers in on-time performance as measured by the U.S. Department of Transportation’s (DOT) Air Travel Consumer Report.
* Unit costs continued to decline as mainline cost per available seat mile (CASM) excluding fuel and special items fell 0.3 percent despite a 3.5 percent decline in mainline capacity. On a year-to-date basis, CASM excluding fuel and special items is down 0.6 percent on a 5.5 percent decline in mainline capacity.
* The Company’s total cash and investments on Sept. 30, 2009 was $2.0 billion, of which $0.5 billion was restricted.
You don't need a passport to know what state you're in...
Mainland From United States of America, joined Jun 2004, 320 posts, RR: 0
Reply 5, posted (5 years 10 months 2 weeks 1 day 15 hours ago) and read 2293 times:
Here's my rough breakdown of the positive / negative charges this Q:
$80 million net loss - including special items
$110 million net loss - excluding special items
$48 million unrealized net gain on fuel hedges
$10 million charge related to aircraft capacity cut costs
$5 million charge related to severance costs
$3 million (non-cash) charge related to temporary impairment of company held auction rate securities
Net gain on special items: $30 million
But there's more. During the Q the company settled a hedge transaction that resulted in a $50 million loss. This $50 million is built into the $110 million net loss.
So, if you get rid of all the noise of special items and fuel hedges you end up with a $60 million net loss, which is better than the $211 million loss excluding the same items last year.
The sale of E190's to Republic does not impact the income statement. It will reduce debt on their balance sheet and, more specifically, repay a debt to Republic in full.
One thing that perked up my ears late in the call was Parker talking of new ancillary revenue streams. Like Allegiant, the company is looking to charge fees based on placement of seat and hopes to have something in place by the middle of next year.