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AMR: $436M 1Q11 Net Loss  
User currently offlinecommavia From United States of America, joined Apr 2005, 11752 posts, RR: 62
Posted (3 years 6 months 4 days 13 hours ago) and read 12835 times:

http://aa.mediaroom.com/index.php?s=43&item=3222

AMR beat consensus estimates ($1.21/share loss vs. $1.32 expectation), but still a huge and unsustainable loss.

Some other moderately interesting news from the release:

- 777-300ER order book outstanding now up to 5 aircraft for delivery 2012-2013 (2 more exercised)
- 4Q11 capacity being reduced 1 percent from previous guidance
- "At least" 25 MD80s being grounded this year
- Update on distribution issues, but no real news
- Yield increased 6.2% YOY, and non-fuel/special items unit cost decreased 1.8% YOY
- Total Debt increased $1.5B since last year (1Q10), but Net Debt only up $200M, indicating AA is stockpiling cash

[Edited 2011-04-20 06:41:02]

104 replies: All unread, showing first 25:
 
User currently offlinesw733 From United States of America, joined Feb 2004, 6341 posts, RR: 9
Reply 1, posted (3 years 6 months 4 days 13 hours ago) and read 12831 times:

You fail to note that, while huge, it's also less than 1Q2010, while revenue is up 9% (and fuel costs were up too).

So, certainly not a great number in the loss column, but...not as bad as last year!


User currently offlinerl757pvd From United States of America, joined Dec 1999, 4686 posts, RR: 11
Reply 2, posted (3 years 6 months 4 days 13 hours ago) and read 12801 times:

The real indication will be once we see how everyone else performed. If other airlines arent anywhere near as bad or made money, it will be safe to say AA is heading wrong way down a one way track...


Experience is what you get when what you thought would work out didn't!
User currently offlinecommavia From United States of America, joined Apr 2005, 11752 posts, RR: 62
Reply 3, posted (3 years 6 months 4 days 13 hours ago) and read 12779 times:

Quoting rl757pvd (Reply 2):
The real indication will be once we see how everyone else performed. If other airlines arent anywhere near as bad or made money, it will be safe to say AA is heading wrong way down a one way track

Well, I don't think anybody is under the allusion that AA is not going to underperform the industry - everyone expects that. There is really no question that no other U.S. carrier will lose as much as AA.

Personally, what I will be looking more closely at from other carriers' reporting is the top line revenue performance - I will be interested to see what the analysis is on how the whole GDS/OTA thing has impacted (or not impacted) AA's revenue performance compared with competitors.


User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7645 posts, RR: 27
Reply 4, posted (3 years 6 months 4 days 13 hours ago) and read 12748 times:

I highly doubt any of the legacies made money in Q1.
Especially DL with the beating they took with their operations due to winter weather, cost of fuel, and the Japan earthquake.


User currently offlineStuckInCA From United States of America, joined Oct 2005, 1986 posts, RR: 0
Reply 5, posted (3 years 6 months 4 days 13 hours ago) and read 12715 times:

No surprises in there, but I really wonder what the plan is for AA. I don't see how they can continue to only make minor adjustments and hope for substantial change. There has to be a step funciton change if they are going to do anything other than slowly cease to exist.

I'm starting to think it might be time to use my AAdvantage miles sooner than later. I can't really see them destroying their relationship with AAdvantage members, but I'm beginning to have a hard time seeing how they get out of this situation.


User currently offlinefxramper From United States of America, joined Dec 2005, 7307 posts, RR: 85
Reply 6, posted (3 years 6 months 4 days 13 hours ago) and read 12711 times:
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Still no contracts for work groups...  

Quoting commavia (Thread starter):
- "At least" 25 MD80s being grounded this year

This should have started happening years a go. Definitely effecting the bottom line now.   



I miss the old Anet.
User currently offlinecommavia From United States of America, joined Apr 2005, 11752 posts, RR: 62
Reply 7, posted (3 years 6 months 4 days 13 hours ago) and read 12624 times:

Quoting fxramper (Reply 6):
This should have started happening years a go.

It did.  
Quoting fxramper (Reply 6):
Definitely effecting the bottom line now.

There is a certain inflection point below which MD80s are still extremely cost effective and economically viable. They have a higher variable fuel cost than 737s, but also a dramatically lower fixed ownership cost burden, and thus on shorter segments, where fuel is relatively less of a variable cost driver, MD80s are still perfectly viable.

Indeed, as the press release alludes to, the low ownership cost and flexibility afforded to AA at the moment by their MD80 fleet is probably - net-net - more of a stretegic asset than a liability.


User currently offlines4popo From United States of America, joined Nov 2008, 264 posts, RR: 0
Reply 8, posted (3 years 6 months 4 days 13 hours ago) and read 12595 times:

Does anybody know how their payroll expense compares to Delta and other legacies? I could probably look it up individually, but I'm being lazy at the moment. I know they are higher, but by how much exactly?

User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7645 posts, RR: 27
Reply 9, posted (3 years 6 months 4 days 13 hours ago) and read 12598 times:

Quoting commavia (Reply 7):
There is a certain inflection point below which MD80s are still extremely cost effective and economically viable. They have a higher variable fuel cost than 737s, but also a dramatically lower fixed ownership cost burden, and thus on shorter segments, where fuel is relatively less of a variable cost driver, MD80s are still perfectly viable.

Indeed, as the press release alludes to, the low ownership cost and flexibility afforded to AA at the moment by their MD80 fleet is probably - net-net - more of a stretegic asset than a liability.

Exactly, the AA MD-80s are becoming next generation of the NW DC-9.
- Low / non-existant ownership costs
- Variable / flexible capacity than can be parked / returned to service as market conditions warrent

Hence they are still competitve on short-haul routes, and likely more cost-effective than flying shiny, new, expensive 738s on routes like DFW-MCI.


User currently offlinefxramper From United States of America, joined Dec 2005, 7307 posts, RR: 85
Reply 10, posted (3 years 6 months 4 days 12 hours ago) and read 12437 times:
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Quoting commavia (Reply 7):
Indeed, as the press release alludes to, the low ownership cost and flexibility afforded to AA at the moment by their MD80 fleet is probably - net-net - more of a stretegic asset than a liability.

Sure AA will spin it as 'we own the planes so the high fuel isn't affecting the bottom line'. They have to justify those built in manager bonuses.   



I miss the old Anet.
User currently offlinesw733 From United States of America, joined Feb 2004, 6341 posts, RR: 9
Reply 11, posted (3 years 6 months 4 days 12 hours ago) and read 12389 times:

Quoting fxramper (Reply 10):

Sure AA will spin it as 'we own the planes so the high fuel isn't affecting the bottom line'.

Of course fuel price is impacting the bottom line, but there IS an advantage to using planes that are paid off. That is undeniable.


User currently offlineSTT757 From United States of America, joined Mar 2000, 16883 posts, RR: 51
Reply 12, posted (3 years 6 months 4 days 12 hours ago) and read 12389 times:

Quoting PSU.DTW.SCE (Reply 9):
Exactly, the AA MD-80s are becoming next generation of the NW DC-9.
- Low / non-existant ownership costs

Didn't we just have this discussion and it was revealed that most of AA's MD-80 fleet is not owned, but rather they did a sale - lease back.



Eastern Air lines flt # 701, EWR-MCO Boeing 757
User currently offlineAeroWesty From United States of America, joined Oct 2004, 20728 posts, RR: 62
Reply 13, posted (3 years 6 months 4 days 12 hours ago) and read 12393 times:

Quoting fxramper (Reply 10):
'we own the planes so the high fuel isn't affecting the bottom line'.

In AAspeak: "Our robust MD-80 fleet will contribute to our earnings results in a massive way."  



International Homo of Mystery
User currently offlineAAExecPlat From United States of America, joined Sep 2009, 636 posts, RR: 4
Reply 14, posted (3 years 6 months 4 days 12 hours ago) and read 12294 times:

Well. That was expected. Not a good result at all regardless of what DL and UA will report. The crazy part is that they manage to lose this much money despite being the yield leader in the industry (using last 10k numbers for all majors) and despite load factors being high. Tells you everything you need to know about where the problems really are. On a personal note, flights I have been on this year have been full to the brim (I should know since I use AA to commute weekly + a bunch of leisure trips) and fares have been sky high with the exception of a one week fare sale that I took ample AAdvantage   of.

User currently offlineSpeedbird128 From Pitcairn Islands, joined Oct 2003, 1648 posts, RR: 2
Reply 15, posted (3 years 6 months 4 days 12 hours ago) and read 12276 times:

Quoting commavia (Thread starter):
Total Debt increased

Stunning work there.   

When does it end?



A306, A313, A319, A320, A321, A332, A343, A345, A346 A388, AC90, B06, B722, B732, B733, B735, B738, B744, B762, B772, B7
User currently offlinediverdave From United States of America, joined Mar 2010, 335 posts, RR: 0
Reply 16, posted (3 years 6 months 4 days 12 hours ago) and read 12216 times:

Quoting STT757 (Reply 12):
Didn't we just have this discussion and it was revealed that most of AA's MD-80 fleet is not owned, but rather they did a sale - lease back.

I searched and can't find any data on how many are owned or leased.

In any case, I would imagine the lease rates for these MD-80s are stunningly low as the sale price would presumably have been rather low as well.

David


User currently offlinefxramper From United States of America, joined Dec 2005, 7307 posts, RR: 85
Reply 17, posted (3 years 6 months 4 days 12 hours ago) and read 12186 times:
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Quoting AeroWesty (Reply 13):
In AAspeak: "Our robust MD-80 fleet will contribute to our earnings results in a massive way."

Exactly Westy.   

Quoting AAExecPlat (Reply 14):
Well. That was expected. Not a good result at all regardless of what DL and UA will report.

Agreed. DL and UA are massive in Asia so they both should also get hammered this quarter.



I miss the old Anet.
User currently offlineaa1818 From Trinidad and Tobago, joined Feb 2006, 3435 posts, RR: 4
Reply 18, posted (3 years 6 months 4 days 12 hours ago) and read 12142 times:

Quoting STT757 (Reply 12):
Didn't we just have this discussion and it was revealed that most of AA's MD-80 fleet is not owned, but rather they did a sale - lease back.

Regardless or whether they are owned or not. The lease cost (if they are in fact leased through an agreement like you mentioned) will be significantly lower than that of their brand new 738s. Take into account the interest earned on the investment of the cash gained in the sale, and the oeprational margins from utilizing the MD80, would easily cover the lease cost.

********************************************

Congrats to AA and its employees for continuing the hard work.
A loss is a loss, but given AA's seemingly limitless problems, they have done well.
Does anybody know how this stacks up to Analysts expectations?
In the past people have done a table showing the various US airlines, what the analysts were predicting in terms of Revenue and Profits, and what the airlines actually returned. Does anyone have such a table or can anyone prepare it? (I know the info is out there, it is just easier sometimes to ask because the "experts" on A.net have that sort of data at their fingertips, or have already compiled it.)

Lets hope that AA can come to an agreement with labour that is beneficial to both the employees and to the company.
In the next 5 years I hope that:

1) Pilots/ Unions do not prevent AA from flying routes based on their length and do not place unnecessary requirements which erode productivity.

2) AA is able to introduce an efficient 100 seater to fly domestically.

3) AA continue to explore new markets. While they have not been as aggressive as some, I think the recent LAX-PVG, MIA- Northern Brazil, JFK-BUD and ORD-HEL represent a good start at moving away from the traditional LHR/MAD/NRT/GRU markets.

4) AA continues to expand its long-haul fleet. But I think this one is pretty apparent and in motion with 787s on "standby order" and 777-300ERs on the way with orders trickling in.

5) oneworld alliance continues to expand, seeking strong partners in uncovered regions and securing the better integrating the current partners/ relationships. Hopefully MX and JL can be revived, LAN-TAM is approved and remains in oneworld and IAG is able to gain a stronger foothold in the EU.


AA1818



“The moment you doubt whether you can fly, you cease for ever to be able to do it.” J.M. Barrie (Peter Pan)
User currently offlineAsiaflyer From Singapore, joined May 2007, 1140 posts, RR: 0
Reply 19, posted (3 years 6 months 4 days 12 hours ago) and read 12097 times:

Quoting fxramper (Reply 17):
DL and UA are massive in Asia so they both should also get hammered this quarter


Huh?
You mean they are big in Japan, and will be hammered because of that?
Economies and airtravel in the rest of Asia are absolutely exploding, but not sure any of the low class airlines from US can benefit much from that anyway?



SQ,MI,MH,CX,KA,CA,CZ,MU,KE,OZ,QF,NZ,FD,JQ,3K,5J,IT,AI,IC,QR,SK,LF,KL,AF,LH,LX,OS,SR,BA,SN,FR,WF,1I,5T,VZ,VX,AC,NW,UA,US,
User currently offlineseatback From United States of America, joined Mar 2002, 774 posts, RR: 0
Reply 20, posted (3 years 6 months 4 days 12 hours ago) and read 12084 times:

Quoting Speedbird128 (Reply 15):
When does it end?

With $6B in the bank, not any time soon.

Additionally, while there has been talk of their labor issues, AA is probably better off not agreeing to contracts as it would increase its costs (i.e. FA 6% wage increase proposal). I think their strategy is to ride it out for as long as it can with the lower costs.


User currently offlinelightsaber From United States of America, joined Jan 2005, 13248 posts, RR: 100
Reply 21, posted (3 years 6 months 4 days 12 hours ago) and read 11924 times:
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Quoting PSU.DTW.SCE (Reply 9):
Exactly, the AA MD-80s are becoming next generation of the NW DC-9.
- Low / non-existant ownership costs
- Variable / flexible capacity than can be parked / returned to service as market conditions warrent

I strongly disagree. With high oil prices and high maintenance costs, these planes are going to be tough to make a profit. It costs money to keep the 'flexible capacity' ready. Aircraft are not cheap to keep flight worthy.

Everyone should realize AA did a sale/leaseback on all the MD-80s they could. In some ways that is constraining the replacement. Hence why the MD-80 still has a depreciation/lease cost!

738: 16J/144Y (config 2 on seatguru)
MD-80: 16J/124

We have had threads on this before:
MD-80 Vs 737-800 Operating Costs (by 1337Delta764 Aug 18 2007 in Civil Aviation)#1

Back then the MD-80 had a per hour cost $400 more than the 738! With less potential revenue. (see post #8). Half the cost delta is maintenance and half is fuel.

I might be a Pratt fan, but those JT8Ds must be overhauled *a lot* more often than the CFM-56-7. (More than twice as often.) Half the cost delta is the *high* maintenance costs on the MD-80 (they're old and old designs required quite a bit more 'touch time' than the 737NG).


The maintenance costs are getting worse since that last discussion. I'd love to know the latest numbers.

The best thing for AA would be a 3 year quick replacement of the old fleet.

Can we say C-series?     

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlinecommavia From United States of America, joined Apr 2005, 11752 posts, RR: 62
Reply 22, posted (3 years 6 months 4 days 12 hours ago) and read 11919 times:

Quoting STT757 (Reply 12):
Didn't we just have this discussion and it was revealed that most of AA's MD-80 fleet is not owned, but rather they did a sale - lease back.

About a third of the fleet is owned, and about two thirds are either capital or operating leased. Either way, though, the ownership cost of an MD80 - whether owned outright or leased - is dramatically lower than a 737. Indeed, AA actually has been doing sale-leasebacks on the 737s of late because the economic benefit can be substantial from doing that with a new airplane that has a higher market value at the time of the transaction.

Quoting seatback (Reply 20):
AA is probably better off not agreeing to contracts as it would increase its costs (i.e. FA 6% wage increase proposal). I think their strategy is to ride it out for as long as it can with the lower costs.

That is certainly the unions' perception of what AA is doing - slow-rolling them (with tacit acceptance and/or approval from the NMB) to get as much "mileage" as possible out of those 2003 concessions.


User currently offlineFlyASAGuy2005 From United States of America, joined Sep 2007, 7004 posts, RR: 11
Reply 23, posted (3 years 6 months 4 days 12 hours ago) and read 11924 times:

Quoting seatback (Reply 20):

?????? Um, what?



What gets measured gets done.
User currently offlineLipeGIG From Brazil, joined May 2005, 11442 posts, RR: 58
Reply 24, posted (3 years 6 months 4 days 11 hours ago) and read 11859 times:
AIRLINERS.NET CREW
FORUM MODERATOR

They need to work quicker to revert the situation. The 77W can help, but not only 5. As i keep saying, they will probably quarter after quarter order 2 or 3 more, to deal with the deposits without hurting the cash flow.

Quoting aa1818 (Reply 18):
3) AA continue to explore new markets. While they have not been as aggressive as some, I think the recent LAX-PVG, MIA- Northern Brazil, JFK-BUD and ORD-HEL represent a good start at moving away from the traditional LHR/MAD/NRT/GRU markets.

They need to improve the product for markets outside LHR, EZE, GRU and NRT. There's some flights that Business departs full, fares were moved up, and still, AA is unable to deploy larger planes than 763's

Quoting aa1818 (Reply 18):
4) AA continues to expand its long-haul fleet. But I think this one is pretty apparent and in motion with 787s on "standby order" and 777-300ERs on the way with orders trickling in.

The 77W (and may be the 739) are the planes AA need to create some advantage over it's current cost structure. If they can't reduce the fixed cost, they need to continue to push for a lower operational cost and larger planes can help. It will be perfect if it comes with less frequencies on key markets, replaced with more capacity.
Markets such as LHR-JFK, JFK-LAX and MIA-GRU, all with 3+ daily flights could have improved yields if one flight is reduced by 77W operations (LHR-JFK could become 3x daily 77W, MIA-GRU could become 2x daily 77W)



New York + Rio de Janeiro = One of the best combinations !
25 Post contains images fxramper : What does AA plan to do with five 773? No, I mean they are big in Asia. NRT is a 'hub' for both airlines, so it affected loads across the board.
26 Post contains images jetBlueE90 : UA will be hurting pretty good too. (not as bad but still pretty big in Japan) should be on AA's 10K. LOL here are a few things about that though. 1)
27 sw733 : I have a feeling they will end up with more than that.
28 PSU.DTW.SCE : Yes, but are they still leasing the oldest ones (the ~25) they plan on parking this year?
29 AeroWesty : Really shouldn't matter unless they have some up for lease return soon. (Do they? I don't know). The question should be, are these 25 the highest cos
30 Post contains images OA412 : Well I think we all knew a loss was coming. Obviously it's encouraging that they beat estimates, and that they posted a smaller lost than the in the s
31 delimit : Huh? Aren't all the 77W orders from the last 12 months? They'll be up to 10 next year at this rate.
32 OA412 : Yes they are. I'm merely poking fun at the fact that they're ordering them two or three at a time. Nothing more.
33 AeroWesty : It could actually be a smart way of doing it, since it preserves cash having to be paid out for deposits. The contract could be written in a way of "
34 lucky777 : Geez, next time don't try so hard to sound like such a tool. I love people who think they're witty.
35 Post contains images delimit : As far as poking fun goes, AAExecPlat won it in the other thread. [Edited 2011-04-20 10:07:18]
36 n471wn : We will know more tomorrow when SWA reports but I suspect that it will show that SWA continues to eat AA's lunch They need to declare bankruptcy as s
37 Post contains images commavia : No no no. You don't understand - AMR is collapsing in on itself like a dying star, and the end is near! I know you're kidding, but let us not forget
38 commavia : Doubtful. First off, Southwest is only going to have 16 gates at Love to work with, so even assuming that they reduce their existing schedule to thei
39 n471wn : Point well taken but I have said it once and I will say it again----the Dallas Fort Worth area is one of the fastest growing areas in the country---h
40 commavia : Doesn't seem ludicrous at all - when you have an airport as massive and expandable as DFW, there's no need to build additional airports just for the
41 n471wn : So you think people will drive great distances to go one airport? I think that is wishful thinking with gasoline costing what it does and no public t
42 commavia : Absolutely. Well, having lived in the Metroplex my entire life, and knowing tons of people in the area who travel constantly - and myself being a loc
43 delimit : Large metro areas have either multiple legacy airports (built when the city was smaller and the city grew to engulf them - LA) or additional airports
44 manfredj : Perhaps if you don't have an intimate understanding of the way airline finance and politics work, yes. Other, more savvy readers will look at current
45 Post contains links AeroWesty : Simply pointing this out: AMR stock hits 52-week low
46 BOAC911 : Very well put, Asiaflyer. I especially like the expression "low class". Exactly. For example like downgauging their only remaining rotation to German
47 SESGDL : I fail to see how some could ignore AA's losses over these last few years, when other carriers have been making profits. While the 1st quarter is his
48 United1 : UA, DL and US are all expected to loose money this quarter however, unlike AA, all three are projected to post a profit for the year....again. I think
49 aa1818 : Why the concern about AA only having 5 on order. Direct orders from Boeing (Source: Wikipedia so forgive me for errors). NZ- 5 Biman- 4 Arik- 2 BA- 2
50 hohd : Other airlines have been to bankruptcy. Will AA be able to proceed without going through Chapter 11 in the long term. Their debt levels are high and c
51 delimit : There needs to be a sarcasm smiley. That said, there's losing money and then there is losing money. I think US, DL and UA's results with have a lot t
52 Post contains images WN738 : What??!! You mean all the nickle and dimeing, all the extra fees for every little thing, all the forced labor concessions didn't increase productivit
53 Post contains images OA412 : First of all, I hate all of you! But in all seriousness, you may very well be right that this may be a good business decision for AA to make, and it
54 Post contains images F9Animal : OMG! That is an incredible loss! One of my favorite airlines is really hurting. How do they stop the bleeding? There has to be some major changes made
55 Post contains images goblin211 : If AA knows they have a huge financial mess, then why didn't they postpone construction on T2 at SFO? They need to get their priorities straight.
56 Post contains images commavia : In my experience, things are rarely - not always, but rarely - as dramatic as predicted. First, AA didn't really spend much on "construction" for SFO
57 United1 : Well here are the projected losses for UA, DL and US... UA Loss -158M (range -33M to -227M) Revenue 8190M (range 8130M to 8220M) Margin -1.9% (range
58 manfredj : Yet Continental chose to retire all MD80's in the early 2000's. Why were they able to buy all new 738's and make it work? I can see your point but I
59 delimit : Actually that's not true. UA was outperforming CO financially prior to the merger. UA had gotten it's house in order before the CO people came on boar
60 commavia : Not so much. This was actually brought up on the analyst call today, and I think Bella Goren (AMR CFO) made an interesting - and important - point: i
61 MIA : As a consumer this doesnt surprise me. I despise American and I only fly them if I have no other choice, no matter how cheap they are. Their employees
62 mah4546 : Entirely untrue. Spirit has had an extremely difficult time cutting into AA's marketshare and Spirit continues to cut international capacity and shif
63 KFitz : Good point. CO was looking at a bleak future without UA.
64 Post contains images robo65 : [ With the help of bankruptcy for a little over 3 years and with a lot of disgruntled employee's due to the pay cuts and their pensions being severely
65 robo65 : Everyone future was looking bleak with maybe an exception of WN. It is not if CO was ready to go out of business or anything like that. Look at US wi
66 United1 : AAs relations with its unions is hardly stellar... actually its almost toxic. Prior to the merger with CO UA was projected to post a profit in 2010 a
67 jfklganyc : "Prior to the merger with CO UA was projected to post a profit in 2010 and 2011....UA accomplished one of the greatest turn arounds in aviation histor
68 United1 : No it wasn't but my point is that they were doing very well operationally and were profitable prior to the merger.
69 Post contains links LAXdude1023 : To answer your first question, yes. Absolutely people will drive to get to DFW. Look at Bush Airport in Houston. Houston is every bit as sprawled out
70 delimit : Which, of course, is equally true of CO so I am sort of at a loss as to your point. Actually, that was sort reason I made that original correction. U
71 n471wn : Thanks for this intelligent post---hard to not agree but the question is that if the growth continues to the northwest then perhaps another airport w
72 commavia : Doubtful. Possible, but doubtful. For starters, road access from the northwest to DFW is generally not bad - and now with the DFW Connector it's abou
73 Santi319 : I have noticed that one of the reason Spirit is so successful is because people despise AA , they tell me when I talk to them, and I seriously think
74 DocLightning : UA lost about 1/4-1/3 what AA did. B6 posted a profit. WN posted a profit. An analyst predicts $1Bn in losses and the AA fanboys say it's all huff. A
75 n471wn : There is no such thing as to a certainty on DAL----by that I mean who is to say that at some point in the future Dallas decides to open more gates at
76 commavia : Then get ready for World War 3. Not to rehash old arguments, but the City of Dallas was breaking its original 1968 agreement just to have kept Love o
77 commavia : Some interesting things from reading the 10-Q: - As expected, basically AA's entire debt issuance for the quarter was immediately recycled into liquid
78 robo65 : My point in this statement was that UA was able through bankruptcy to take advantage of pay cuts and stripping their pension plan away and giving it
79 robo65 : UA was not profitable. Their operational performance was good and yes they were on the verge of a turnaround. However they had a lot of debt. What UA
80 United1 : They most certainly were..... Q3 2010 GAAP +$387M Q2 2010 GAAP +$273M Q1 2010 GAAP +$69M UA was doing very well both operationally and financially pr
81 PVG : This their real problem. Their fares are high and their service sucks! High costs or low costs, if they continue down that path, they're finished!
82 robo65 : My understanding of the quote was UA was profitable prior to the merger. The merger was announced in first quarter of 2010. So by this statement I to
83 boilerla : UA Q1 2009: $382 Million GAAP LOSS CO Q1 2009: $132 Million GAAP LOSS UA Q2 2009: $28 Million GAAP PROFIT CO Q2 2009: $169 Million GAAP LOSS UA Q3 20
84 delimit : When did announcing something become the same as doing it? United and Continental merged on 10/1/2010.
85 TOMMY767 : AA should focus on a few things for 2011. It doesn't take a rocket science to think of this either: 1. Work on contract negotiations for the Unions. O
86 commavia : Priority #1 - no question about it. I continue to believe the MD80s are a viable and sustainable fleet as long as oil doesn't go to $200/barrel, beca
87 Post contains images AA767400 : UA tried their MIA hub, and that did not work out well for them at all. DL's entrance into MIA will be interesting to see how it plays out. DFW has h
88 srbmod : Please keep the discussion on topic, which is about AA's Q1 Net Loss, NOT the UA/CO merger. If the participants in this discussion cannot keep the dis
89 TOMMY767 : Maybe but they have too many of them. I want to say they have twice as many as DL, and AA's are older on average. AA has plenty of cash for this, the
90 commavia : I don't disagree that as market conditions, financing terms, and cash management allow, they should move towards retiring them, but AA still has quit
91 n471wn : And Horton needs to go as well.....
92 TOMMY767 : Not that I don't doubt your reasoning but I feel we've been hearing this same excuse from corporate in 2005, 2006, 2007, 2008, 2009, 2010...and so on
93 robo65 : My point exactly, that is what I was saying all along that neither was profitable. I was just disagreeing with the statement was that UA was profitab
94 MileHighOffice : US carriers have the toughest time with weather through all seasons on a consistent basis. This weekend the thunderstorms rolling through Texas and th
95 Post contains links and images lightsaber : AA has become constrained due to their high debt load. If they do not adapt soon, they are in trouble. I'm quoting thsi as no one discussing AA should
96 mogandoCI : Your point came true. DL was the 2nd worst and only lost roughly half as much as AA. AA's obsession with frequency because "business users demand it"
97 commavia : No argument - AA has too much debt, and their debt load is going in the wrong direction at the moment. However, one interesting and relevant point: a
98 commavia : What I find far more interesting than AA's alleged "obsession" with frequency is the A.net "obsession" with this AA "obsession." First off, in the en
99 AAExecPlat : 1) When is the last time you flew AA? In what class of service? Do you hold status? What other airlines do you fly regularly and in what classes? 2)
100 Post contains images lightsaber : Thank you. I forgot about that. An excellent step in the right direction for AA. I'm curious, how large a portion? I expect both DFW and ORD to see t
101 Post contains links commavia : Well, I just drew an 800nm ring circle around DFW and one around ORD, and then I started counting flights using today's schedule. I stopped counting
102 AADC10 : While the loss is not good, they sky is not falling. The worst thing that could possibly happen is that AA will have to file for Ch. 11 just like ever
103 Post contains links and images lightsaber : I can see why! I forgot ORD was within 800nm of the bulk of the eastern seaboard. oops... I used to live in CT too! Back when AA had BDL-LAX non stop
104 PSU.DTW.SCE : No, the reason the MD-80s don't fly to MIA, and southern Florida is for two related reasons. 1) MD-80s are not overwater equipped - thus can't fly mo
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