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Virgin America Reports Q3 Profit - $33.5mil Net  
User currently offlineLAXintl From United States of America, joined May 2000, 24905 posts, RR: 46
Posted (8 months 3 weeks 1 day 13 hours ago) and read 7122 times:

Well that's two quarters of net profit, and four quarters of operating profit now.   


Virgin America reported an operating income of $44.4 million and net income of $33.5 million on total revenue of $387.3 million for the 3rd quarter. Operating margin was 11.5%.


Full press release:
http://finance.yahoo.com/news/virgin...eports-record-third-090100689.html

=


From the desert to the sea, to all of Southern California
25 replies: All unread, showing first 25:
 
User currently offlineF9Animal From United States of America, joined Dec 2004, 5001 posts, RR: 28
Reply 1, posted (8 months 3 weeks 1 day 11 hours ago) and read 6728 times:

Good for them!!! They totally deserve it!


I Am A Different Animal!!
User currently offlineKleiner From United States of America, joined Dec 2008, 142 posts, RR: 0
Reply 2, posted (8 months 3 weeks 1 day 10 hours ago) and read 6674 times:

I'm thrilled to hear this.

It's one thing to promote when you're bleeding (and be loved). It's another to start promoting when you have profit.

I think you're going to really see momentum moving forward.


User currently offlineDeltaMD90 From United States of America, joined Apr 2008, 7832 posts, RR: 52
Reply 3, posted (8 months 3 weeks 1 day 10 hours ago) and read 6598 times:

I know I always sound like a negative Nancy in VX threads, but I am not a financial wizard... are there any hidden woes that aren't plainly obvious? In other words, is this somewhat of a spin when VX is still fighting an uphill battle?

Either way, seems like VX is indeed doing a lot better. Congrats, I honestly thought they weren't going to make it



Ironically I have never flown a Delta MD-90 :)
User currently offlineVC10DC10 From United States of America, joined Apr 2006, 1035 posts, RR: 3
Reply 4, posted (8 months 3 weeks 1 day 10 hours ago) and read 6544 times:

1. Congrats to VX.
2. Wow, how did their RASM improve so dramatically?
3. $156.9 million in unrestricted cash still sounds low to me.
4. I must have missed hearing about their debt restructuring. What exactly did they do?


User currently offlineLAXintl From United States of America, joined May 2000, 24905 posts, RR: 46
Reply 5, posted (8 months 3 weeks 1 day 10 hours ago) and read 6491 times:

Quoting VC10DC10 (Reply 4):
3. $156.9 million in unrestricted cash still sounds low to me.

Remember they are privately held. Cash as been down to $25-50mil range before regularly.

Money can be held off the books by owners. Even Spirit pre-IPO often had low cash onhand.

Quoting VC10DC10 (Reply 4):
4. I must have missed hearing about their debt restructuring. What exactly did they do?

Back in the spring investors converted $290mil debt (out of $800mil in total) into equity which would trim carriers interest expense by $20 annually. Investors also established $75mil debt financing facility.



From the desert to the sea, to all of Southern California
User currently offlineFCAFLYBOY From United Kingdom, joined Nov 2006, 589 posts, RR: 0
Reply 6, posted (8 months 3 weeks 1 day 10 hours ago) and read 6491 times:

Way to go VX excellent news, hope it continues, the absolute BEST airline in North America bar none. I'm also a big B6 fan but no one touches VX for product, service and innovation.

User currently offlineVC10DC10 From United States of America, joined Apr 2006, 1035 posts, RR: 3
Reply 7, posted (8 months 3 weeks 1 day 10 hours ago) and read 6409 times:

Quoting LAXintl (Reply 5):

Back in the spring investors converted $290mil debt (out of $800mil in total) into equity which would trim carriers interest expense by $20 annually. Investors also established $75mil debt financing facility.

Thanks for the info. Did the foreign-ownership laws have any impact on this?


User currently offlineSANFan From United States of America, joined Aug 2006, 5367 posts, RR: 12
Reply 8, posted (8 months 3 weeks 1 day 10 hours ago) and read 6317 times:

Nice to see more (apparently) encouraging financial news from VX. They might just make it after all!

I'm still not a fan of some facets of their business model (e.g., route structure) but maybe there will be some re-thinking going forward if the profitable quarters continue.

In any case, Congratulations and continued Good Luck to all the folks collecting paychecks from VX -- nice job!

bb


User currently offlineEA CO AS From United States of America, joined Nov 2001, 13519 posts, RR: 62
Reply 9, posted (8 months 3 weeks 1 day 8 hours ago) and read 6038 times:
Support Airliners.net - become a First Class Member!

Hat-tip to the people at VX; still not sold on them being a viable entity for the long term but so far they appear to be turning a corner. They may want to keep their heads down while AS/UA/DL wage war up and down the West Coast though.


"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineusflyguy From United States of America, joined Jan 2012, 907 posts, RR: 0
Reply 10, posted (8 months 3 weeks 1 day 5 hours ago) and read 5606 times:

Good. Now they can start paying their employees enough so that they don't have to collect public assistance.


My post is my ideas and my opinions only, I do not represent the ideas or opinions of anyone else or company.
User currently offlineProst From United States of America, joined Oct 2012, 940 posts, RR: 1
Reply 11, posted (8 months 3 weeks 1 day 5 hours ago) and read 5606 times:

The consolidating industry raising air fares is helping all carriers. I'm glad to see a worthy competitor such as VX doing well.

User currently onlineOB1504 From United States of America, joined Jul 2004, 3309 posts, RR: 9
Reply 12, posted (8 months 3 weeks 1 day 5 hours ago) and read 5440 times:

Quoting usflyguy (Reply 10):
Good. Now they can start paying their employees enough so that they don't have to collect public assistance.

It's my understanding that their starting pay, at least for airport staff, is on par with those of other airlines.

That's not to say that it's above poverty level, but it's not like VX is the only one guilty of this.


User currently offlinenutsaboutplanes From United States of America, joined Jul 2010, 496 posts, RR: 8
Reply 13, posted (8 months 3 weeks 1 day 3 hours ago) and read 5003 times:

Quoting EA CO AS (Reply 9):
Hat-tip to the people at VX; still not sold on them being a viable entity for the long term but so far they appear to be turning a corner. They may want to keep their heads down while AS/UA/DL wage war up and down the West Coast though.

I think that this is the most interesting event going on in the US Airline industry at this time outside of the US AA merger......the pissing match cant last forever.



American Airlines, US Airways, Alaska Airlines, Northwest Airlines, America West Airlines, USAFR
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17369 posts, RR: 46
Reply 14, posted (8 months 3 weeks 1 day 2 hours ago) and read 4882 times:

Quoting VC10DC10 (Reply 4):
2. Wow, how did their RASM improve so dramatically?

They shrank 4% YOY. They also reduced transcons quite a bit as their stage went down by 7%, dropping long, low fare flying for shorter, low fare flying.

Quoting Prost (Reply 11):

The consolidating industry raising air fares is helping all carriers

  



E pur si muove -Galileo
User currently offlineRIDGID727 From United States of America, joined Jul 2008, 1112 posts, RR: 0
Reply 15, posted (8 months 3 weeks 1 day 2 hours ago) and read 4865 times:

Quoting MaverickM11 (Reply 14):
They shrank 4% YOY. They also reduced transcons quite a bit as their stage went down by 7%, dropping long, low fare flying for shorter, low fare flying.

And its obviously working for them.


User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17369 posts, RR: 46
Reply 16, posted (8 months 3 weeks 1 day 2 hours ago) and read 4807 times:

Quoting RIDGID727 (Reply 15):
And its obviously working for them.

Yep. They and UA can both shrink to profitability.



E pur si muove -Galileo
User currently offlinephxa340 From United States of America, joined Mar 2012, 885 posts, RR: 1
Reply 17, posted (8 months 3 weeks 1 day 2 hours ago) and read 4564 times:

Quoting Prost (Reply 11):
The consolidating industry raising air fares is helping all carriers.

Until potential entrants see all the profits then jump in themselves and create another fare bloodbath  


User currently offlineslcdeltarumd11 From United States of America, joined Jan 2004, 3370 posts, RR: 0
Reply 18, posted (8 months 3 weeks 1 day ago) and read 4119 times:

I wonder if they can get any slots from the US/AA merger or gates? I thought that Southwest and JetBlue was suppose to get first shots at them but I hope virgin America and spirit are allowed to get something to be fair.

User currently offlineBoeingMerica From , joined Dec 1969, posts, RR:
Reply 19, posted (8 months 3 weeks 20 hours ago) and read 3423 times:

Quoting DeltaMD90 (Reply 3):

When it comes to GAAP it is pretty black and white. There is certainly some wiggle room in how you define certain assets and expenditures but in the end, VX books had to match auditor opinions. So I would tend to say no.

However, if you want to know if there is something 'hiding in plain sight' on the financials you need to crack open the quarterly reports and dig through them yourself. My guess is nothing rather significant is on the horizon, check the footnotes out.

BoeingMerica


User currently offlinelightsaber From United States of America, joined Jan 2005, 12910 posts, RR: 100
Reply 20, posted (8 months 3 weeks 15 hours ago) and read 2634 times:
Support Airliners.net - become a First Class Member!

Great news for VX. I'm impressed. They blew past my expectations by a LARGE factor.   

Quoting LAXintl (Thread starter):
Operating margin was 11.5%.

Wait, this is a VX thread, right?     
Double digit operating margins... wow. Operating like a real business.   

Quoting EA CO AS (Reply 9):
They may want to keep their heads down while AS/UA/DL wage war up and down the West Coast though.

I wish I had time to take advantage of these fares!

Quoting nutsaboutplanes (Reply 13):
I think that this is the most interesting event going on in the US Airline industry at this time outside of the US AA merger......the pissing match cant last forever.

  

Quoting Prost (Reply 11):
The consolidating industry raising air fares is helping all carriers.

Yes, but VX still did far better than any expectations I'm aware of.

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlinepoint2point From United States of America, joined Mar 2010, 2741 posts, RR: 1
Reply 21, posted (8 months 3 weeks 13 hours ago) and read 2279 times:

From my count, this airline has 32 nonstop routes:

SFO - 1) PDX, 2) SEA, 3) BOS, 4) ORD, 5) EWR, 6) JFK, 7) PHL, 8) DCA, 9) IAD, 10) LAS, 11) DFW, 12) AUS, 13) FLL, 14) PSP, 15) SAN, 16) LAX 17) CUN, 18) PVR, 19) SJD

LAX - 20) SJC, 21) SEA, 22) BOS, 23) ORD, 24) EWR, 25) JFK, 26) IAD, 27) DWF, 28) FLL, 29) MCO, 30) LAS, 31) CUN

LAS - 32) JFK

So with a net income of net income of $33.5 million, it looks as though one can calculate that it's about $1M per route?

Anyways, congrats to all for this success. And as long as they pull in about 2 cents more than they spend, it looks as though they're going to be around for a while, eh?

 


User currently offlinerickabone From United States of America, joined May 2006, 127 posts, RR: 0
Reply 22, posted (8 months 3 weeks 1 hour ago) and read 1959 times:

As a controller at SFO, I really hope they stick around... Our operations have increased significantly with them around (not only due to them, but due to UAL, DAL & SWA increasing their flights in part to compete with them) and that led to a nice little pay raise for me.  

User currently offlineinfinit From Singapore, joined Jul 2008, 548 posts, RR: 1
Reply 23, posted (8 months 2 weeks 6 days 4 hours ago) and read 1548 times:

Never been on VX but I'm heard such wonderful things about them.

SQ has started codesharing with them.. over their StarA partners UA which they don't have a single codeshare with.

Will try VX the next time I have a domestic flight in the US


User currently offlineDesertFlyer From United States of America, joined Nov 2005, 515 posts, RR: 0
Reply 24, posted (8 months 2 weeks 6 days 4 hours ago) and read 1462 times:

Quoting rickabone (Reply 22):
As a controller at SFO

I'm happy to hear you got a pay raise to deal with the extra traffic. You guys are always professional and efficient on the radios. Glad to call SFO my home airport.

As for VX, they really are a disruptor. Not just about lowering fares like a LCC, they're also about improving the experience of air travel. For all their faults, it's hard not to like them.


User currently offlinerickabone From United States of America, joined May 2006, 127 posts, RR: 0
Reply 25, posted (8 months 2 weeks 6 days 2 hours ago) and read 1338 times:

Quoting DesertFlyer (Reply 24):
I'm happy to hear you got a pay raise to deal with the extra traffic. You guys are always professional and efficient on the radios. Glad to call SFO my home airport.

As for VX, they really are a disruptor. Not just about lowering fares like a LCC, they're also about improving the experience of air travel. For all their faults, it's hard not to like them.

Thanks... Come up and visit sometime. And you are right... Even if they failed as an airline, I feel like their presence forced other airlines to up their standards of service, entertainment and attitude. That will be a lasting positive throughout the industry.


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