LAXintl
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Midwest Air Group 2Q Profit Falls

Thu Jul 26, 2007 11:31 pm

With Airtran posting record profit for Q2, and enjoying strong yields, might be another valid reason to agree with the merger.

Quote:
Midwest Air Group 2Q Profit Falls
Thursday July 26,
Midwest Air Group 2Q Profit Falls 45 Percent on Weaker Fare Trends


MILWAUKEE (AP) -- Midwest Air Group Inc. said Thursday its second-quarter profit fell 45 percent, hurt by weakening fare trends and tougher fuel costs.

Quarterly earnings dropped to $4.9 million, or 19 cents per share, from $8.8 million, or 39 cents per share, in the prior-year period. Revenue rose to $194.5 million from $176.9 million.

The company said its yield -- an industry gauge that tracks fare trends -- fell 5.3 percent amid industrywide pricing weakness. Its aircraft fuel and oil costs, meanwhile, jumped to $66.4 million from $60.6 million. They are Midwest Air Group's biggest expenses.

Midwest Air Group Chairman and Chief Executive Timothy E. Hoeksema said in a statement that despite the challenging pricing environment, travel demand remained strong during the second quarter. Passenger traffic grew 15.8 percent during the quarter.
From the desert to the sea, to all of Southern California
 
RJNUT
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RE: Midwest Air Group 2Q Profit Falls

Thu Jul 26, 2007 11:48 pm

Oh Gawd, here it comes...

Midwest is profitable, period...And AIr Tran is profitable!

So...each has its own path to follow and set of cirmcumstances to deal with..Not all airlines are exactly profitable to the exact same degree, each and every quarter...

Each is good at what they do!
 
EXAAUADL
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 12:19 am

But the point is YX current mgmt and structure isnt giving thr shareholders the maximum possible return
 
Mikey711MN
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 12:25 am



This thread should go well...

In all honesty, I'm glad that YX made a profit. But the depressed yields are definitely a cause for concern. Stocks are trading at $13.40 at the moment, down slightly from the opening bell.

-Mike
I plan on living forever. So far, so good...
 
EXAAUADL
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 12:35 am

I love that pic!!!!!!!!!!!!!!!!!!!!!!!!!!
 
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mke717spotter
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 12:53 am

Atleast they made some money. I would say only in the event if they had lost money, then there would be a major cause for concern.

[Edited 2007-07-26 17:58:44]
Will you watch the Cleveland Browns and the Detroit Lions on Sunday? Only if coach Eric Mangini resigned after a loss.
 
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JBo
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 12:56 am

Quoting Mke717spotter (Reply 5):
Atleast they made some money. I would say only en the event if they had lost money, then there would be a major cause for concern.

Damn straight. A profit is a profit.
I'd take the awe of understanding over the awe of ignorance any day.
 
LAXintl
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 1:13 am

AirTran Holdings Inc., Comments on Midwest Air Group Second Quarter Earnings
 stirthepot 

Quote:
AirTran Holdings Inc., Comments on Midwest Air Group Second Quarter Earnings
Thursday July 26


ORLANDO, Fla., July 26 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc., the parent of AirTran Airways, issued the following comments in response to Midwest Air Group's performance for the second quarter of 2007.

"Midwest lowered the bar in June when it said it would fail to meet already modest earnings projections," said Joe Leonard, AirTran Airways chairman and chief executive. "The company's actual results fail to meet even those diminished expectations. Midwest blames its troubles on a weak industry- wide pricing environment, yet AirTran Airways and other airlines have improved profitability in the same challenging conditions.

"Midwest management refuses to recognize that its business plan is fundamentally flawed," Leonard said, "Midwest's core operating profitability is deteriorating, and they irresponsibly ignore the expressed will of their shareholders. The owners of most Midwest shares support AirTran Airways' plan to combine two proud airlines into a single, national, low-cost carrier with the ability to thrive in a fiercely competitive marketplace."


The following shows Midwest's declining performance in the second quarter:

-- Net Income down 45 percent to $4.9 million
-- Earnings per Share down 51 percent to 19 cents
-- Passenger Revenue per Available Seat Mile down 3 percent
-- Rising Non-Fuel Unit Costs

http://biz.yahoo.com/prnews/070726/nyth106.html?.v=101
From the desert to the sea, to all of Southern California
 
airtran717
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 1:39 am

Quoting JBo (Reply 6):
Damn straight. A profit is a profit.

While I agree with you and am not going to begin the usual YX/FL runaround...

If you make $100 and your buddy makes $10,000... which one would you rather be? You or your buddy? A profit is a profit, yes. But there's more to it than just saying, "well I made a little money anyway, so everything is fine"... especially if you owe $75 in overhead and he only owes $5000... Understand, folks, my numbers are just examples to make a point, NOT based on quotes, comments, or figures from ANY official source... that way I can't be misquoted or asked where I got my facts. LOL

[Edited 2007-07-26 18:42:17]
 
Mikey711MN
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 2:10 am

Quoting AirTran717 (Reply 8):
If you make $100

It's especially tough, as a shareholder, if you were expected to initially make $200, then revised down later to $150, and then end up only making $100.

-Mike
I plan on living forever. So far, so good...
 
airtran717
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 2:25 am

Quoting Mikey711MN (Reply 9):
It's especially tough, as a shareholder, if you were expected to initially make $200, then revised down later to $150, and then end up only making $100.

Exactly. I may still be a profit, but on what scale and in what perspective?
 
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JBo
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 2:39 am

Quoting AirTran717 (Reply 8):

If you make $100 and your buddy makes $10,000... which one would you rather be?

I don't disagree with you, and your points are valid as well.

As subsequent posts between yours and this have detailed, it's ultimately in the eye of the beholder how this profit is regarded.

Alot of this, too, is based on what a company, investment firms, etc., place on expectations of a company's performance. If expectations are held low, it looks like a better performance than when the expectations are held higher.

It's a tricky thing ... I'd be interested to see what the latest quarterly results are for other public airlines, and what those results looked like against expectations. Sounds like a job for Knope, lol.  Smile
I'd take the awe of understanding over the awe of ignorance any day.
 
Alias1024
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 3:11 am

Well, that was certainly a smug response from AirTran. Perhaps Midwest would have had a better quarter if they hadn't been forced to spend $2.9 million fighting the AirTran takeover attempt, and management could have focused on improving their airline instead of fighting AirTran.
It is a mistake to think you can solve any major problems with just potatoes.
 
RJNUT
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 3:40 am

It is not Failing people.!!! .most of the expansion of their strategic plan was barely in place until the middle of the 1st quarter..thats impressive to have that many new routes and still have 83per cent load factor...usually it takes quite a while to build up new markets.,..Talk about bullseyes on new markets!!! Thats an example of how Wall Street analysts and Air TRan distort everything!
 
vivavegas
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 4:55 am

Looking for a bit of amusement... Listen to Tim hold his tongue as he gets spanked by these shareholders...

http://biz.yahoo.com/cc/3/83223.html

The last 10 minutes is rather interesting...

WOW!

Craig
MKE
MKE / EYW / LAS - The true trifecta of aviation!
 
sllevin
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 7:11 am

Quoting EXAAUADL (Reply 2):
But the point is YX current mgmt and structure isnt giving thr shareholders the maximum possible return

Exactly. The current management has set EXTREMELY high goals to justify their plan over the takeover, and these numbers certainly don't make their case.

Steve
 
Mikey711MN
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RE: Midwest Air Group 2Q Profit Falls

Fri Jul 27, 2007 8:02 am

Quoting Vivavegas (Reply 14):
http://biz.yahoo.com/cc/3/83223.html

That almost got painful to listen to.

Granted, the last guy just wanted to tee off on him instead of asking a question, but the first woman who asked the questions really pressed him on what the Management sees in their numbers that purportedly creates value that exceeds what FL is offering. The [non-]answer to that was pretty telling IMHO.

-Mike
I plan on living forever. So far, so good...

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