bistro1200
Posts: 312
Joined: Sat Nov 01, 2003 7:13 am

2nd Quarter Earnings - Who's Winning?

Wed Jul 25, 2007 4:52 am

From http://biz.yahoo.com/ap/070724/earns_airlines.html?.v=2

Among other U.S. carriers in the latest quarter, American Airlines parent AMR Corp. posted a $317 million profit last week, Delta Air Lines Inc. earned $1.77 billion or $274 million excluding bankruptcy-related items, Southwest Airlines Co. netted $278 million and Continental Airlines Inc. earned $228 million.

Ranked by Q2 earnings
1) AA: $317
2) WN: $278
3) DL: $274 ($1.77 Billion before bankruptcy costs)
3) UA: $274 (But added $895 million to the cash balance, now at $5.1 Billion)
5) CO: $228

Yet to report:
NW
US
Measure to the millimeter, mark with a crayon, cut with an axe.
 
rfields5421
Posts: 5563
Joined: Thu Jul 19, 2007 12:45 am

RE: 2nd Quarter Earnings - Who's Winning?

Wed Jul 25, 2007 4:55 am

The oil companies are winning
 
CO787EWR
Posts: 152
Joined: Tue Jul 10, 2007 11:10 am

RE: 2nd Quarter Earnings - Who's Winning?

Wed Jul 25, 2007 5:10 am

Quoting RFields5421 (Reply 1):

lol they probaly are
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: 2nd Quarter Earnings - Who's Winning?

Wed Jul 25, 2007 5:15 am

It is much more meaningfull if earnings are viewed on a per-share basis or margin instead of just pure dollars. One needs some method to correct for companies which are different sizes.

For instance CO's $228m earnings which equal $2.03 per share is significantly better then larger AMRs $317m which equals only $1.08 per share.

Earning per share:
CO - $2.03
UA - $1.83
AA - $1.08
DL - $0.70 (excluding special re-org charges)
WN - $0.36
B6 - $0.11


By margin
WN - 10.8%
CO - 6.1%
DL - 5.5%
AA - 5.4%
UA - 5.3%
B6 - 2.9%
From the desert to the sea, to all of Southern California
 
SESGDL
Posts: 2614
Joined: Sat Jan 13, 2001 6:25 am

RE: 2nd Quarter Earnings - Who's Winning?

Wed Jul 25, 2007 1:36 pm

Quoting Laxintl (Reply 3):
It is much more meaningfull if earnings are viewed on a per-share basis or margin instead of just pure dollars. One needs some method to correct for companies which are different sizes.

As noted, profit margins tend to be a better indicator of financial stability, as AA is much larger than say B6 and therefore should have larger earnings. Any profit in the US airline industry is good, but the larger the profit the better. The numbers posted are strong, WN's is still impressive despite all the statements that they'll be in trouble when the hedges run out. B6's margin are kinda worrisome to me, they should be doing better; their earnings were, however, inline with analyst's estimates.

It will be interesting to see NW's results when they are posted, as they have suffered somewhat from numerous flight cancellations last month and just starting to again this month.

Jeremy
 
HPAEAA
Posts: 878
Joined: Mon May 08, 2006 7:24 am

RE: 2nd Quarter Earnings - Who's Winning?

Wed Jul 25, 2007 1:43 pm

anyone know the RASM's per carrier? Many seem to think that might be the best way to adjust for size.. although I think there's a way to derive it from the margins, I just can't remeber how...
Why do I fly???
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: 2nd Quarter Earnings - Who's Winning?

Wed Jul 25, 2007 1:53 pm

Quoting HPAEAA (Reply 5):
Many seem to think that might be the best way to adjust for size

To me RASM are only good if one is comparing like companies. A multi-class network carrier should always be able to drive a RASM premium over an LCC.

Even amongst majors, RASM comparisons get skewed due regional and seasonal variations dependent on where the carrier might have large concentrations of flying.

Ultimately, margin to me is one of the best indicators as it clearly shows how the business manages its cost versus revenue.
From the desert to the sea, to all of Southern California
 
bobnwa
Posts: 4463
Joined: Fri Dec 22, 2000 12:10 am

RE: 2nd Quarter Earnings - Who's Winning?

Tue Jul 31, 2007 11:18 pm

Quoting Bistro1200 (Thread starter):
Among other U.S. carriers in the latest quarter, American Airlines parent AMR Corp. posted a $317 million profit last week, delta Air Lines Inc. earned $1.77 billion or $274 million excluding bankruptcy-related items, Southwest Airlines Co. netted $278 million and Continental Airlines Inc. earned $228 million.

Ranked by Q2 earnings
1) AA: $317
2) WN: $278
3) DL: $274 ($1.77 Billion before bankruptcy costs)
3) UA: $274 (But added $895 million to the cash balance, now at $5.1 Billion)
5) CO: $228

Yet to report:
NW
US

All the reports are in, and the rankings are
1.AA-$317
2.WN-$278
3.DL-$274 ($1.77Billion before bankruptcy costs)
4.UA-$274 (added $895 million to cash balance, now at $5.1 billion
5.NW-$273 (2.15Billion before bankruptcy costs)
6.US-$263
7.CO-$228

Note to WorldTraveler: Northwest was not ashamed to report these earnings. Also their operating margin was 8.8% second only to WN and much higher than any other legacy carrier including DL.

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