MaverickM11
Topic Author
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UAL Reports 2Q Net Income Of $274 Million

Tue Jul 24, 2007 10:57 pm

http://biz.yahoo.com/prnews/070724/aqtu022.html?.v=24

" -- Reported net income of $274 million, an increase of $155 million or
130 percent over the second quarter of 2006. UAL's pre-tax income of
$465 million was an improvement of $349 million year-over-year.

-- Increased mainline passenger unit revenue by 5.2 percent and increased
consolidated passenger unit revenue by 4.7 percent from the second
quarter of 2006.

-- Continued its good cost performance, with second quarter mainline CASM,
excluding fuel and severance charges, down 0.5 percent from the second
quarter of 2006.
"
E pur si muove -Galileo
 
atlaaron
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RE: UAL Reports 2Q Net Income Of $274 Million

Tue Jul 24, 2007 11:20 pm

Really a great quarter for UA. I am always complaining about how they need to step it up, but this looks good to me. I am really beginning to wonder what UA is going to do with all that cash.

I'm wondering if UA may end up acquiring, instead of being acquired.
 
Flying-Tiger
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RE: UAL Reports 2Q Net Income Of $274 Million

Tue Jul 24, 2007 11:29 pm

Far more interesting IMO:

Quote:
United and Aloha Airlines signed an agreement to strengthen their partnership in the Hawaii and trans-Pacific markets. This capitalizes on both Aloha's and United's 60 years of experience in serving Hawaii and expands marketing, operational and financial opportunities for both carriers. Under the agreement, United Airlines receives a seat on Aloha's board of directors and a minority equity stake that could expand over time.

Might have been discussed before, but that clearly puts UA on a very firm foot in Hawaii.
Flown: A319/320/321,A332/3,A380,AT4,AT7,B732/3/4/5/7/8,B742/4,B762/763,B772,CR2,CR7,ER4,E70,E75,F50/70,M11,L15,S20
 
UAL777UK
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RE: UAL Reports 2Q Net Income Of $274 Million

Tue Jul 24, 2007 11:43 pm

Very strong results and lets be honest they had to be. With the announcement of the new J seats and all thats going with it, i.e. new F seat, new Y cabin interiors I really feel positive about the future for UA. I hope they can just life that staff morale up a peg or two as well!
 
Flighty
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:05 am

IAD-PEK is no doubt contributing here.
 
jacobin777
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:18 am

CASM at 10.99 is still a little high, if they can get that down < .10, I think they would be doing very well then......and yes, I think they have a lot of challenges to overcome......

Regardless, kudos to UA.. thumbsup ...there are many here (especially some of the koolaiders from other carriers-I won't mention names, but they know who they are) who love bashing UA....this goes to show UA is still a carrier to be reckoned with.. yes ...
"Up the Irons!"
 
MaverickM11
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:22 am

Quoting Jacobin777 (Reply 5):
who love bashing UA

I do wish death upon Ted but otherwise I like UA. Seems like a good quarter, especially since their CASM is down. Maybe their management isn't as incompetent as I thought...that would be a good thing!
E pur si muove -Galileo
 
DIA
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:22 am

UAL is the only major airline carrier in the world (out of banckruptcy) that does not have any a/c on order. My guess is they will convert most if not all the options it still hold with Airbus for more A319/20s to rid themselves of their elder 733s. In terms of any widebody order...I have no idea where they stand, or how long they plan on 'standing' instead of getting their buts in gear...ordering some new widebody equipment...enabling them to compete better with other world-class airlines.
Ding! You are now free to keep supporting Frontier.
 
FriendlySkies
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:24 am

Good results...if UA can focus on customer service and lowering costs by means other than outsourcing (i.e. increasing productivity of both employees and fleet), I think they will be on a very strong footing.

As discussed in a previous thread, in about five years UA will be in an extremely good position to replace most of their fleet with new generation aircraft -- narrowbodies included -- while most domestic competitors are still flying newer A320 and 737NG. I think that UA has been much smarter about it's fleet acquisitions than some on this board like to think.

Basically, average fleet age is about 12 years. Oldest widebody is from 1989 I believe, 747. Oldest 737 is also from 1989. I expect UA to place a large order for narrowbody and widebody around 2009, probably from one manufacturer. I also don't believe those A320s will ever be delivered, but could be wrong.

But, right now, customer service needs to priority #1.

[Edited 2007-07-24 17:29:47]
 
RDUDDJI
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:25 am

I for one, am also very exited for UA. I know from experience that the employees at UA have given and given of themselves, so it's good to see things looking better.

As far as what are they gonna do with all the cash...I'd speculate they may buy some stock back.

Quoting Jacobin777 (Reply 5):
CASM at 10.99 is still a little high, if they can get that down < .10, I think they would be doing very well then......and yes, I think they have a lot of challenges to overcome......

True, and now that UA had such a good quarter, all the employees are gonna want more money.
Sometimes we don't realize the good times when we're in them
 
Flighty
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:33 am

Quoting FriendlySkies (Reply 8):
As discussed in a previous thread, in about five years UA will be in an extremely good position to replace most of their fleet with new generation aircraft -- narrowbodies included -- while most domestic competitors are still flying newer A320 and 737NG. I think that UA has been much smarter about it's fleet acquisitions than some on this board like to think.

Good point. I agree 100%. Their Airbuses and Boeings are in fine shape for another 10 years.

Quoting Jacobin777 (Reply 5):
CASM at 10.99 is still a little high, if they can get that down < .10, I think they would be doing very well then......and yes, I think they have a lot of challenges to overcome......

It's very high CASM. UA's seat configs are quite premium though. If you exclude the influence of Y+, their CASM probably drops below 10c. UA has decided Y+ is worth the cost, however. Very neat strategy.
 
jacobin777
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:39 am

Quoting RDUDDJI (Reply 9):
True, and now that UA had such a good quarter, all the employees are gonna want more money.

..which is unfortunate...UA needs to still need to reduce debt and make sure they have enough  dollarsign  for the next cyclical downturn...

Quoting Flighty (Reply 10):
If you exclude the influence of Y+, their CASM probably drops below 10c.

.....they do charge for Y+ to a certain extent...either at the airport for an upgrade, or $300/year to fly on Y+ (assignable seating at time of booking)...
"Up the Irons!"
 
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United787
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 1:50 am

Quoting FriendlySkies (Reply 8):
Basically, average fleet age is about 12 years. Oldest widebody is from 1989 I believe, 747. Oldest 737 is also from 1989. I expect UA to place a large order for narrowbody and widebody around 2009, probably from one manufacturer. I also don't believe those A320s will ever be delivered, but could be wrong.



Quoting Flighty (Reply 10):
Good point. I agree 100%. Their Airbuses and Boeings are in fine shape for another 10 years.

I totally agree. United doesn't need any new planes at the moment, but they do need to improve the interiors of some of their current fleet which has been discussed on this forum to death. I would love to see new seats including PTVs for the 747 fleet and for the old seat covers to be replaced with the new standard.

Congrats to United! Things are looking up...
 
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fxramper
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 2:29 am

Quoting Flighty (Reply 4):
IAD-PEK is no doubt contributing here.

Source?

Quoting MaverickM11 (Reply 6):
I do wish death upon Ted

Flamebait?



This thread is as clueless as UA management. Wonder what they'll do with the profit this quarter; maybe give themselves a bonus?  no 
 
tommytoyz
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 2:52 am

Reality Check:

Net income was $274 Million. Of that $192 Million is from income tax credits, left over from the pre BK days. per IRS rules. Without that, which will dry up at some time, net income was only $82 Million.

For a company that big and out of $5.2 Billion in revenues - $82 million is a razor thin profit margin, almost nothing. UA is still not in a strong position. I predict they will need to shrink down to size as they're simply not the strongest animal on the prairie. Virgin America, Skybus and God knows who else are gearing up..........

UA fails to impress me from a business standpoint.
 
Boston92
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 2:53 am

Quoting FXramper (Reply 13):
Source?

Source? Any route is no doubt contributing to the airlines success or failure. If the route is doing good with the seats full, the route is "no doubt" contributing to the success of the airline.
"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
 
MaverickM11
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 2:58 am

Quoting FXramper (Reply 13):
Flamebait?

Just making clear everyone knows my bias Smile

Quoting FXramper (Reply 13):
This thread is as clueless as UA management.

You want to elaborate on that?

Quoting Tommytoyz (Reply 14):
Of that $192 Million is from income tax credits

Isn't that an expense, without which their income would have been $465 Million?

"Income tax expense 192 "
E pur si muove -Galileo
 
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fxramper
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:00 am

Quoting Boston92 (Reply 15):
Source? Any route is no doubt contributing to the airlines success or failure.

Do you work in UA revenue management? Do you know what they are selling their seats on that route for? Do you know how full premium seating is? How much cargo are they hauling? How long has this route been active and we have a confirmed profit?!

 rotfl 
 
dsa
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:01 am

A good set of results for UA, its obvious that international travel is going to be the future of the airline in terms of major profitability. Is TED counted as one of their 'regional affiliates?' Is TED profitable?

I think UA does need new planes, although I think rather more for expansion than replacement.

'United reports strong second quarter'

UNITED RESULTS SPECIAL: http://letsfindaflight.com/page_1181845192626.html
Go Skybus!!!!
 
Boston92
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:01 am

Quoting Tommytoyz (Reply 14):
UA fails to impress me from a business standpoint.

Making money is a pretty good indication that you are doing something right, from a business standpoint.
"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
 
slider
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:02 am

Quoting ATLAaron (Reply 1):
I am really beginning to wonder what UA is going to do with all that cash.

Why does everyone continue to think something has to "be done" with a cash balance? It's as if the money burns a whole in your pockets or something. And relative to CO and AA, in terms of cash/revenue, UA has more work to do actually.

Especially important in context of rising fuel costs.

Quoting Tommytoyz (Reply 14):
Reality Check:

Net income was $274 Million. Of that $192 Million is from income tax credits, left over from the pre BK days. per IRS rules. Without that, which will dry up at some time, net income was only $82 Million.

Thank you--someone is the voice of reason here.

$82M net result for the quarter is not good, especially compared to the competition. But it is a positive result at least.

I'm wondering if someone--anyone--on the Street will wise up and question UA and their "business plan" coming out of BK, because they dont have one. Nothing has changed. Ted is still diluting their brand, as they chase the needle of market segmentation to an unhealthy extreme.
 
Boston92
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:11 am

Quoting FXramper (Reply 17):
Do you work in UA revenue management? Do you know what they are selling their seats on that route for? Do you know how full premium seating is? How much cargo are they hauling? How long has this route been active and we have a confirmed profit?!

Your missing the point and are thinking wayyyy too hard.

All UA routes are contributing to the success of United Airlines.
"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
 
Longhornmaniac
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:15 am

Quoting Flighty (Reply 4):
IAD-PEK is no doubt contributing here.

Contributing...sure. So is every other flight that's profitable, though. How do you know this route is profitable? This route may very well be successful long term, but let's hold off on making statements like these until Father Time has had his say on the matter.

Quoting Boston92 (Reply 15):
If the route is doing good with the seats full, the route is "no doubt" contributing to the success of the airline.

That's not completely true. Passengers are but one factor that determine a flight's profitability. And even so, as FXRamper said, there are many factors that determine how big an impact passengers have on profitability: how much the seats are selling for?, how much the passengers are paying for (if they're paying at all)?, how much are people paying for premium seats (or are they)?, how's the cargo revenue? There is so much more that goes on behind the scenes, so to speak, that factors into a flight's possibility. The number of empty seats can be deceptive, as flights going out full can still lose money, and seemingly empty flights can still make money. It's all a big balancing act.  Smile

Cheers,
Cameron
Cheers,
Cameron
 
Flighty
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:19 am

Not at all, I implying the PEK flight is definitely profitable, so that is helping. Source? Every aviation hobbyist, expert or management person in the USA.

Edit: come on, use your brain. I don't even know the loads on PEK but I will stand up and say it's profitable.

UA has some real turkeys out there in its network, too. UA should be more profitable than it is.

[Edited 2007-07-24 20:21:27]
 
Boston92
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:21 am

Quoting Longhornmaniac (Reply 22):
That's not completely true. Passengers are but one factor that determine a flight's profitability. And even so, as FXRamper said, there are many factors that determine how big an impact passengers have on profitability: how much the seats are selling for?, how much the passengers are paying for (if they're paying at all)?, how much are people paying for premium seats (or are they)?, how's the cargo revenue? There is so much more that goes on behind the scenes, so to speak, that factors into a flight's possibility. The number of empty seats can be deceptive, as flights going out full can still lose money, and seemingly empty flights can still make money. It's all a big balancing act.

Right. My whole point was that ALL UA flights are a contribution to the airlines success this quarter, whether it be good or bad. There twice daily from SFO-RNO is contributing somehow, we don't need a source for that, which was my original point with FXRamper.
"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
 
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fxramper
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:21 am

Quoting Tommytoyz (Reply 14):
UA fails to impress me from a business standpoint.

 checkmark 

Quoting Dsa (Reply 18):

Where did he go?

Quoting Boston92 (Reply 21):
All UA routes are contributing to the success of United Airlines.

So a route losing $20 million a month is helping the bottom line?  confused 
 
Longhornmaniac
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:23 am

Quoting FXramper (Reply 25):

Where did he go?

Haha, wondering the exact same thing...

Cheers,
Cameron
Cheers,
Cameron
 
UnknownUser
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:27 am

Quoting Tommytoyz (Reply 14):
UA fails to impress me from a business standpoint

I bet they are disappointed they failed to meet your expectations.

Quoting FXramper (Reply 13):
Flamebait?

You seem to be the only one spreading flamebait, see below:

Quoting FXramper (Reply 13):
This thread is as clueless as UA management



Quoting FXramper (Reply 25):
So a route losing $20 million a month is helping the bottom line?

What? What route is losing 20mil a month?
Die Skybus!!! You need to die for the good of the industry!
 
panamair
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:28 am

Quoting Tommytoyz (Reply 14):
Net income was $274 Million. Of that $192 Million is from income tax credits, left over from the pre BK days. per IRS rules. Without that, which will dry up at some time, net income was only $82 Million.

How did you get that?

Operating Income = $537 million
Interest Expense/Income = ($72 million)
Net Income before Taxes = $465 million
Income Tax = ($192 million)
Net Income after Taxes = $273 million (465-192)

Operating Margin was actually quite impressive at slightly more than 10%.

Quoting Jacobin777 (Reply 5):
CASM at 10.99 is still a little high, if they can get that down < .10, I think they would be doing very well then

Actually, that CASM of 10.99 (Mainline, including fuel) is not too bad especially when their arch rival AA's Mainline CASM was 11.14 cents. Here are some comparisons among legacies that have reported (I don't believe these are length-of-haul adjusted though):

Q2 Mainline CASM (including fuel, etc.):
AA: 11.14 cents
UA: 10.99 cents
CO: 10.82 cents
DL: 10.41 cents

Q2 Mainline CASM (ex-fuel):
CO: 7.71 cents
AA: 7.67 cents
UA: 7.60 cents
DL: 6.97 cents
 
Boston92
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:29 am

Quoting FXramper (Reply 25):
So a route losing $20 million a month is helping the bottom line?

Yes...it is contributing to the bottom line. If you want to play around with my words, go ahead, and look like a fool. All I meant was that no matter what route, or flight, it is contributing to the success (in this case) or failure of the airline. It is a simple fact.
"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
 
LAXintl
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 3:35 am

Quoting Dsa (Reply 18):
Is TED counted as one of their 'regional affiliates?' Is TED profitable?

TED is considered part of its mainline operation.

According to today Q2 conference call, they remain "very happy" with TED which provided the company with the best configuration in a stressful pricing environment.

Quoting Slider (Reply 20):
Why does everyone continue to think something has to "be done" with a cash balance? It's as if the money burns a whole in your pockets or something

Because something does not to be done. Its generally not productive for companies to sit on huge cash balances.

According to previous comments and todays conference call the company will continue to explore options of what to do with "excess" cash, including further debt pay down (remember they prepaid $1B in Q1), shareholder dividend, or stock buy back. A "comfortable" cash level for the company was mentioned to be around $3B with current balance sitting at $5.1B.
From the desert to the sea, to all of Southern California
 
jacobin777
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 4:10 am

Quoting Panamair (Reply 28):
Actually, that CASM of 10.99 (Mainline, including fuel) is not too bad especially when their arch rival AA's Mainline CASM was 11.14 cents.

..you have a point there, but I'm sure you know AA is the only legacy to not have gone into bankruptcy.....

Had they gone into bk like every other carrier, their CASM would be the best in the industry...yet AA is still profitable, has its bond ratings increased and has been paying down debt at a decent clip.

Once AA gets its debt to <$10 billion (probably will take 3-4 years to do that), it will be in a very strong financial position....

I sometimes criticize AA for not being as aggressive as the DL's of the world (and rightfully so to a certain extent), however, they are profitable and returning a positive ROI to their investors.....

When the next downturn happens, I certainly see AA one carrier being around after all is said and done..

..again, congrats to UA for the quarter, but you have still a lot of work to do.....
"Up the Irons!"
 
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United787
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 6:06 am

Interesting information from Crain's on the specifics of the interior upgrades United is planning for the Economy Class. New entertainment systems including larger screens! I haven't this kind of detail before.

"But there are still no current plans to buy new aircraft despite the plane-buying spree at many of its international competitors.

Instead, United plans $550 million in capital expenditures this year and $660 million in 2008, about a third of which will be devoted to aircraft improvements for a better "customer experience," including new entertainment systems with 15-inch video screens. Economy class will also get new entertainment systems, carpeting and seat cushions, although back-of-the-plane seats will remain essentially the same."

http://chicagobusiness.com/cgi-bin/news.pl?id=25765

I really think United is making a wise decision to upgrade its current fleet rather than unnecessarily purchase new planes, although I think they will need to start putting some orders in for the future come 2009-2010, IMHO.
 
cslusarc
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 6:58 am

That operating margin for the 2nd quarter of 10.30% was near the top of the pack of the major who have reported so far.
--cslusarc from YWG
 
atlaaron
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 7:14 am

Quoting DIA (Reply 7):
have no idea where they stand, or how long they plan on 'standing' instead of getting their buts in gear...ordering some new widebody equipment

It was actually mentioned on the conference call today something about no widebody order in the near term or something like that.

Quoting Jacobin777 (Reply 11):
they do charge for Y+ to a certain extent...either at the airport for an upgrade, or $300/year to fly on Y+ (assignable seating at time of booking)...

Or free if you are Elite.

Quoting Slider (Reply 20):
Why does everyone continue to think something has to "be done" with a cash balance?

Even the analysts were asking. Like Laxintl said, companies are not generally supposed to sit on more cash than they need because it does not make money like other investments. Today on the call the CFO mentioned UA needs 3 billion for the next downturn, they have much more than that.
 
DC8FanJet
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 7:18 am

It is obvious that some of our A-netters aren't too good at reading financial repports, or only read what they want to see. The $192 million was allowance for income tax to be PAID,

Net income is simply that, NET.

Maybe next year, in 9th grade, they'll teach that at Tommytoyz school.
 
FreequentFlier
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:39 pm

Quoting DC8FanJet (Reply 35):
It is obvious that some of our A-netters aren't too good at reading financial repports, or only read what they want to see. The $192 million was allowance for income tax to be PAID,

Net income is simply that, NET.

Maybe next year, in 9th grade, they'll teach that at Tommytoyz school.

 rotfl 

Yes I love the know it alls who apparently know nothing. At least have somewhat of a clue if you're going to pretend like you do.
 
RDUDDJI
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:46 pm

Quoting Tommytoyz (Reply 14):
Reality Check:

Net income was $274 Million. Of that $192 Million is from income tax credits, left over from the pre BK days. per IRS rules. Without that, which will dry up at some time, net income was only $82 Million.

For a company that big and out of $5.2 Billion in revenues - $82 million is a razor thin profit margin, almost nothing. UA is still not in a strong position. I predict they will need to shrink down to size as they're simply not the strongest animal on the prairie. Virgin America, Skybus and God knows who else are gearing up..........

UA fails to impress me from a business standpoint.

Let me guess, you went to the University of Enron... You might want a course in Financial Accounting before you go spewing off with your UA hatred. Thanks for coming out.
The truth is their results far exceeded analyst expectations, otherwise their stock price wouldn't have been up over 4% today.
Sometimes we don't realize the good times when we're in them
 
flyiguy
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:53 pm

If your one that doesnt like outsourcing , then your gana love this. Delta Global's contract is up for running express ops at IAD at the end of August. UA is going to be taking over parts of the opertation slowly starting with baggage transfers amd then month to mont they will sare going to slowly disolve away DGS...Eventually it will become like ORD...The entire station will be run by mainline UA without contractors with the exception of plane servicing( i.e. Airserve and Gate gourment. ) Hope this will be good news for passengers worried about missing luggage from outsourced express contractors that don't care about the customer or UA all together...
The opinions I post are of mine and mine alone, not of the airline I work for.
 
brons2
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RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 12:55 pm

Quoting DC8FanJet (Reply 35):
It is obvious that some of our A-netters aren't too good at reading financial repports, or only read what they want to see. The $192 million was allowance for income tax to be PAID,

Net income is simply that, NET.

Maybe next year, in 9th grade, they'll teach that at Tommytoyz school.

I'm starting to think you don't know the difference between net and gross.
Firings, if well done, are good for employee morale.
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 1:35 pm

Quoting ATLAaron (Reply 34):

Or free if you are Elite.

..I don't know if an Elite can reserve the seat in advance though....... confused 
"Up the Irons!"
 
EA772LR
Posts: 1285
Joined: Wed Mar 07, 2007 2:18 am

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 2:06 pm

Quoting FriendlySkies (Reply 8):
I expect UA to place a large order for narrowbody and widebody around 2009, probably from one manufacturer.

I tend to think that you may be right. I Could really see UA taking some 788's and 789's as well as some 748I's. I think they may hold out til the NG narrowbodies are launched before placing their order for these. The A320's seem to be fine.
We often judge others by their actions, but ourselves by our intentions.
 
FriendlySkies
Posts: 3540
Joined: Fri Aug 13, 2004 3:57 pm

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 4:45 pm

Quoting FlyIGuy (Reply 38):
If your one that doesnt like outsourcing , then your gana love this. Delta Global's contract is up for running express ops at IAD at the end of August. UA is going to be taking over parts of the opertation slowly starting with baggage transfers amd then month to mont they will sare going to slowly disolve away DGS...Eventually it will become like ORD

I think that's very good news. While ORD has been somewhat of a mess during the transition to Mainline UA handling, I think in the end this will provide better customer service and a more unified experience for the customer. Also, I heard rumors that T2 was going to get a slight overhaul (i.e. more gates) to better handle UAX, anyone else heard mumblings about that? (This is not the T2 reconstruction outlined in the ORD master plan)
 
tommytoyz
Posts: 1195
Joined: Thu Jan 18, 2007 9:08 am

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 6:54 pm

The $192 Million is a non cash income item, per GAAP. If it were a liability to be paid, it would be in (parentheses).


Even UA tries to make this as clear as possible:

"Other income (expense)"
"Income tax expense 192"


Since the $192 million is not in (parentheses), it is a credit that makes up the net income of $273 million. You can even add it up and check for yourselves.

"Net income $274"


So take that tax credit out and you only get $82 million.
 
jseesue
Posts: 26
Joined: Mon Jan 02, 2006 5:21 am

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 7:02 pm

Quoting Tommytoyz (Reply 14):
Reality Check:

Net income was $274 Million. Of that $192 Million is from income tax credits, left over from the pre BK days. per IRS rules. Without that, which will dry up at some time, net income was only $82 Million.

You're wrong, tommytoyz. If you read the article closely, you would have understood that the $192 million was a tax expense, which actually lowered their income.

Quoting Tommytoyz (Reply 14):
UA fails to impress me from a business standpoint.

Tommytoyz fails to impress me from a reading comprehension standpoint.
 
tommytoyz
Posts: 1195
Joined: Thu Jan 18, 2007 9:08 am

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 7:06 pm

Two more things:

1. The net profit margin was about 5.3% with the tax credit. Without it doesn't get over 1.6%
2. What is it with the hostility of U.S. based posters? Is it a cultural thing?
 
tommytoyz
Posts: 1195
Joined: Thu Jan 18, 2007 9:08 am

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 7:13 pm

Directly form the article:

"The company recorded a non-cash income tax expense in the second quarter of 2007 of $192 million. The effective tax rate for the quarter was 41 percent. Because of its Net Operating Loss carry-forwards and excess tax deductions, the company expects to pay minimal cash taxes for the foreseeable future."

Per GAAP, it is recorded as a credit, as can be seen. This stems from the per BK days and will be used up and depleted at some point per IRS rules. What some people are confused about, I think, is the difference between how the IRS treats certain items and the way GAAP does. They are different accounting treatments.
 
tommytoyz
Posts: 1195
Joined: Thu Jan 18, 2007 9:08 am

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 7:24 pm

In reviewing the GAAP figures, I stand corrected. I was confused in that they used parenthesis and then didn't use them for the non cash item.

No harm done, and I certainly didn't try to insult anyone, unlike others here.

Good night
 
flightopsguy
Posts: 299
Joined: Tue Jan 04, 2005 9:51 am

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 7:34 pm

Quoting Jacobin777 (Reply 40):
I don't know if an Elite can reserve the seat in advance though....... confused

Of course elites can reserve an explus seat in advance!
A300-330 BAC111/146/J31/41 B99/1900 CV580 B707-777 DC8/9/10 L188/1011 FH227/28/100 SB340 DO228 EMB2/170 CR2-900 SH330-60
 
airportplan
Posts: 319
Joined: Wed Jan 14, 2004 12:36 am

RE: UAL Reports 2Q Net Income Of $274 Million

Wed Jul 25, 2007 9:21 pm

Quoting FriendlySkies (Reply 42):
Also, I heard rumors that T2 was going to get a slight overhaul (i.e. more gates) to better handle UAX, anyone else heard mumblings about that? (This is not the T2 reconstruction outlined in the ORD master plan)

No more gates but a new T2 food court will be happening very soon. A more comprehensive Terminal overhaul is in the works but it is still a couple of years off.

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