Yazoo From United States of America, joined Aug 2001, 488 posts, RR: 0 Posted (4 years 6 months 4 days 13 hours ago) and read 2410 times:
On October 21 AMR is scheduled to report its quarterly earnings. Last quarter, AMR was the only Legacy that has reported losses. Now Analysts expect the company to post a loss of $1.34. But seeing how the Airline industry is recovering, do you think we are in for a big surprise?
LAXtoATL From United States of America, joined Oct 2009, 1670 posts, RR: 2
Reply 2, posted (4 years 6 months 4 days 12 hours ago) and read 2301 times:
Quoting Yazoo (Thread starter): On October 21 AMR is scheduled to report its quarterly earnings. Last quarter, AMR was the only Legacy that has reported losses. Now Analysts expect the company to post a loss of $1.34. But seeing how the Airline industry is recovering, do you think we are in for a big surprise?
AA is expected to report a small profit this quarter. The projected loss is for the full year. The projections for this quarter for AA are a profit but on considerably smaller margins compared to their competitors. Considering that the analysts make their projections based primarily on information they get from the airline itself, I wouldn't expect any big surprises in terms of earnings. Any surprises announced during this earnings conference would be reflected in future quarter earnings not this one.
GlobalCabotage From United States of America, joined Nov 2009, 619 posts, RR: 0
Reply 5, posted (4 years 6 months 4 days 12 hours ago) and read 2214 times:
Given AA's performance over the last 10 quarters, one could say a profitable Q3, be it $10 USDor $125MM USD, would be strong given AA's past.
Also, remember that AA did not file Chapter 11 and does not have the labor savings that UA/CO, DL/NW, and others were able to get out of the Courts. If AA could lower their cost structure, they could be as profitable as other airlines.
Hubs in top 4 US population markets (NYC, LA, CHI, DFW - AA is calling LA a hub).
MIA - Latin America hub.
ATI with BA, IB, and JL will be huge!
High labor costs.
ORD hub has UA/CO competition. WN at MDW as well.
JFK hub has DL competition, and chronic delays. B6 does help.
Seat capacity in the US market. We've seen a rebound in traffic in the US, and not a significant amount of seating capacity increase. This is resulting in increased fares and higher revenue per seat mile (long overdue). Will this stay constant, or will other carriers add capacity? As UA/CO integrate, I expect some seats to be lost. WN may add more, but they have seemed to be growing at a slower rate (not accounting for the merger which will change this).
AA announces a route (LAX-PVG) and UA responds. Will there be a contest between UA / AA to offset each other?