Investors do not appear to think so. After shooting up before the announcement, UAL share prices dropped 1%.
That has to do with oil shooting up to $100 a barrel again and has nothing to do with UAs results which beat expectations. Incidentally AA has dropped 8 percent today, DL just under 1%, WN dropped just under 1% and US around 3.5%.
I know the voices in my head aren't real but sometimes their ideas are just awesome!!!
Now with all that cash on hand maybe they could hire juuuust a few people to help us out.
Not trying to rain on the parade. I'm happy for ther results and thankful for my job. But it's a prime example of a company in the US sitting on a ton of cash,but not hiring even a small amount of people. Which from this insiders view....we could use a little help to put it nicely.
But letting go of people for sure with the merger.
LAXintl From United States of America, joined May 2000, 26855 posts, RR: 50
Reply 17, posted (3 years 9 months 1 week 3 days 10 hours ago) and read 5651 times:
Earnings call notes:
o Solid financial and operational performance for the Qtr.
o Net Profit $577mil - 6% pre tax margin.
o Revenue up 9% to 9.7Bil.
o Expenses up 12% (985mil), primarily due fuel prices.
o Fuel expense up $1.1bil yoy. Had $278mil fuel hedge gain.
o Aircraft maintenance cost up 20% yoy due volume of checks and engine overhaul cost, and merger related integration.
o Total debt down $1bil to approx $14Bil during Qtr incl. prepayments of aircraft funding facilities.
o Unrestricted cash $8.6Bil.
o $750mil cash flow in Qtr.
o Accrued $90mil in employee profit sharing.
o Merger integration well on the way. – policy procedures mostly aligned. Working on technology now. 15 major platforms to be aligned – for example single pax service platform by Q1 2012.
o 275 of 370 airports are now working jointly. Have features such as airport kiosk allow pax to check into either airline
o Joint labor agreements must result in sustainable long term cost structures. Will unlikely to make goal of having things in place by end of 2011.
o Launch joint United Club’s in Q3 which will include remodels of several global lounges.
o New Mileage Plus to be rolled out in Q4.
o Traffic basically flat yoy.
o Network yield up 10%.
o Latin America entity, especially Central America very strong which saw 20.2% revenue increase, yield +22.7% yoy.
o Pacific up RASM 5.7%, premium cabin traffic strong especially to China (up 13% yoy). $100mil rev loss in Q2 due Japan weakness. Japan point of sales net bookings improving expect more normal traffic flows by Q4.
o Atlantic segment up primarily on Middle East and India demand both experiencing double digit growth.
o Q4 Atlantic capacity will be down 6% in cooperation with JV partners.
o Consistent corporate travel returning.
o Q2 fares were good due pricing increases.
o Cargo volume down 13%, but yield up over 20% providing a 5% revenue boost.
o Cross fleeting will allow better manage capacity esp in International arena. Each subsidiary has unique fleet benefits.
o Tepic economic environment esp in US.
o Q3 looks OK. PRASM in July up 7% so far, but weaker than Q2 growth.
o CASM up 1-2% rest of year.
o Fuel price concern. 51% of remainder of 2011 fuel hedged.
o More “merchandizing” opportunities for added ancillary revenues out there.
o CAPEX $1bil in full year – mostly all in customer focus areas and integration
o 2012 capacity growth likely will be flat at the moment. Have ability to manage up/down as needed.
o Look forward to 6 - 787s planned in 2012.
o Airline focus is “Smart Business customer” in mind. Elite traveler volumes are growing.
o Working on strategy for wi-fi across entire domestic fleet.
o Online CO&UA.com sales have seen “significant” growth first 6-mos of 2011.
o Does not view AA order as limiting future flexibility by taking up too many delivery slots. Says AA order finally pushed Boeing to make a decision on 737 fleet which is good for industry.
o Airline industry is “brutally taxed”, heavier than vices such as alcohol and have concerns about things happening in DC and overseas. About 20% of passenger fares go towards various governmental fees.
[Edited 2011-07-21 11:10:23]
From the desert to the sea, to all of Southern California
yellowtail From United States of America, joined Jun 2005, 6493 posts, RR: 3
Reply 21, posted (3 years 9 months 1 week 3 days 6 hours ago) and read 5118 times:
Quoting LAXintl (Reply 17): o Latin America entity, especially Central America very strong which saw 20.2% revenue increase, yield +22.7% yoy.
I tell you...even at the miniscule BZE station...I can see this....UA is really beginning to hurt AA in Central America. I see UA's planes pretty full while AA is having fare sales
I mentioned this in another thread awhile back about the shift for travellers from this region away from transiting MIA and got pounced upon...but if you are going anywhere but SoFla....UA and DL are really gaining ground.
When in doubt, hold on to your altitude. No-one has ever collided with the sky.