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Virgin America Post Q2 Financial Numbers  
User currently offlineLAXintl From United States of America, joined May 2000, 25049 posts, RR: 46
Posted (3 years 11 months 2 weeks 22 hours ago) and read 6271 times:

Virgin America posted its 2nd quarter financial results. Quite encouraging.

Operating Revenues: $184.5mil +35.7%
Operating Expenses: $184.9mil
Operating Loss: $430,000
Net Loss: $15.5mil. ($10mil on fuel hedge loss)

RASM +36%
Yiled: 10.86
CASM 9.82 (6.09 ex fuel)
Load Factor: 81.9%

Full Press Release:
http://finance.yahoo.com/news/Virgin...nd-prnews-3744757241.html?x=0&.v=1


With numbers like this Q3 might be profitable!


From the desert to the sea, to all of Southern California
13 replies: All unread, jump to last
 
User currently offlinePlanesNTrains From United States of America, joined Feb 2005, 5490 posts, RR: 29
Reply 1, posted (3 years 11 months 2 weeks 22 hours ago) and read 6273 times:

Looks really encouraging indeed. CASM seems quite low to me. How do they compare to their peers? Anyhow, since the 3rd qtr is just about over, it'll be fun to see the numbers when they come out.

-Dave



Next Trip: SEA-ABQ-SEA on Alaska
User currently offlineburnsie28 From United States of America, joined Aug 2004, 7536 posts, RR: 8
Reply 2, posted (3 years 11 months 2 weeks 21 hours ago) and read 6053 times:

I am not so sure it looks promising, considering every airline but AA and now VX made profits for the 2nd quarter.


"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
User currently offlineB6JFKH81 From United States of America, joined Mar 2006, 2881 posts, RR: 7
Reply 3, posted (3 years 11 months 2 weeks 21 hours ago) and read 5986 times:

Quoting burnsie28 (Reply 2):
I am not so sure it looks promising, considering every airline but AA and now VX made profits for the 2nd quarter.

You're correct. Q2 is supposed to be a strong quarter for the airlines, along with the first 2/3 of Q3...but once September comes, it gets ugly. If their July and August were strong, it could carry their September and still lead to profit. Their RASM and yield are good so that definitely helps. In this day and age, I've stopped trying to guess or predict the future and just wait until the damn reports are released because you never know what oddities will pop up LOL!



"If you do not learn from history, you are doomed to repeat it"
User currently offlinePlanesNTrains From United States of America, joined Feb 2005, 5490 posts, RR: 29
Reply 4, posted (3 years 11 months 2 weeks 21 hours ago) and read 5952 times:

Quoting burnsie28 (Reply 2):
I am not so sure it looks promising, considering every airline but AA and now VX made profits for the 2nd quarter.

Aside from that one fact, there is scarcely anything that the two have in common. One is a huge legacy, one is a nimble start-up. That they both lost money is I'm sure not a great thing to have in common, but I see a world of difference between them.

Will VX make money in the future? Beats me. But they are heading in the right direction. Is AA?

-Dave



Next Trip: SEA-ABQ-SEA on Alaska
User currently onlineMaverickM11 From United States of America, joined Apr 2000, 17412 posts, RR: 46
Reply 5, posted (3 years 11 months 2 weeks 20 hours ago) and read 5779 times:

Quoting PlanesNTrains (Reply 4):
One is a huge legacy, one is a nimble start-up

That "nimble start-up" has been losing money faster than that "huge legacy".



E pur si muove -Galileo
User currently offlineapodino From United States of America, joined Apr 2005, 4254 posts, RR: 6
Reply 6, posted (3 years 11 months 2 weeks 20 hours ago) and read 5732 times:

Quoting PlanesNTrains (Reply 1):
Looks really encouraging indeed. CASM seems quite low to me. How do they compare to their peers? Anyhow, since the 3rd qtr is just about over, it'll be fun to see the numbers when they come out

I don't know how most of their costs compare, but I was looking at pilot pay scales yesterday, and VX pilots have probably the lowest wages of any 121 airline for airlines operating the A320 series, and that goes for all similar size aircraft. Yes they are a startup, but sooner or later, if you don't start paying your people well, you can't attract the top talent to work for your company.


User currently offlineEA CO AS From United States of America, joined Nov 2001, 13547 posts, RR: 62
Reply 7, posted (3 years 11 months 2 weeks 19 hours ago) and read 5651 times:
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The good:

- Numbers are much better than this same quarter last year.
- Average fare is up substantially from last year, when they were trying to buy market share/load factors.
- Their increase in FTEs was lower than their increase in ASMs, so they're hiring efficiently.


The bad:

- Their yields are still very low
- At 12.9hrs/day, they're already toward or at the top-end of their aircraft utilization
- With an 81.9% LF, they're not far from running an essentially "full" operation, yet aren't profitable.

As others have said, they've already torched a boatload of investor money. It'll be interesting to see what their Q3 numbers look like. If they can't turn a profit in Q3, they're in need of serious help to turn this thing around.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineUALWN From Andorra, joined Jun 2009, 2762 posts, RR: 2
Reply 8, posted (3 years 11 months 2 weeks 18 hours ago) and read 5403 times:

Quoting MaverickM11 (Reply 5):
That "nimble start-up" has been losing money faster than that "huge legacy".

The opposite, the until recently largest airline in the world losing money faster than a new airline that started operations just when the worst economical crisis in 80 years got underway, would have been remarkable indeed. Although with AA you never know...



AT7/111/146/Avro/CRJ/CR9/EMB/ERJ/E75/F50/100/L15/DC9/D10/M8X/717/727/737/747/757/767/777/AB6/310/319/320/321/330/340/380
User currently offlinejfk777 From United States of America, joined Aug 2006, 8323 posts, RR: 7
Reply 9, posted (3 years 11 months 2 weeks 14 hours ago) and read 5134 times:
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Why does Virgin America have so many Transcon flights ? LAX, SFO and LAS to BOS, JFK and IAD. Too many long haul flights. The DFW flights are good but Houston, Denver, Salt Lake and Chicago could use VA. With shorter flights their yields would go up. VA should fly from Florida up the east coast to Boston and New York, I know the market is crowded but they entered very crowded LAX and SFO to JFK as their first market.

User currently offlineluv08 From United States of America, joined May 2009, 128 posts, RR: 0
Reply 10, posted (3 years 11 months 2 weeks 12 hours ago) and read 4991 times:

Congrats to VX! Way to go! Keep it up!

User currently onlineMaverickM11 From United States of America, joined Apr 2000, 17412 posts, RR: 46
Reply 11, posted (3 years 11 months 2 weeks 11 hours ago) and read 4897 times:

Quoting UALWN (Reply 8):
The opposite, the until recently largest airline in the world losing money faster than a new airline that started operations just when the worst economical crisis in 80 years got underway, would have been remarkable indeed.

It would have been remarkable if it were true, but VX has consistently lost money at a rate 3+ times faster than AA



E pur si muove -Galileo
User currently offlineFURUREFA From United States of America, joined Feb 2004, 801 posts, RR: 2
Reply 12, posted (3 years 11 months 2 weeks 9 hours ago) and read 4588 times:

The numbers are not great, and to me, VX's low yield is the most concerning figure. But I was surprised at how low their CASM is. I think the key for VX is to increase yields, but how to do that...

Matt


User currently offlinePlanesNTrains From United States of America, joined Feb 2005, 5490 posts, RR: 29
Reply 13, posted (3 years 11 months 2 weeks 8 hours ago) and read 4336 times:

Quoting MaverickM11 (Reply 5):
That "nimble start-up" has been losing money faster than that "huge legacy".

Well, to me their operating loss appears to be a fraction of the loss American had for the quarter, relative to size. I haven't seen much good come out of AAs financials lately, but VX is at least showing improvements.

Anyhow, not worth getting into - if you view it differently, that's fine.

-Dave



Next Trip: SEA-ABQ-SEA on Alaska
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