USAirALB
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US Reports 3Q Profit

Thu Oct 27, 2011 7:59 pm

Didn't see this posted...

US posted a 3Q profit of $95 million today.

Key Notes from today's webcast:

-A 44 percent increase in consolidated fuel price drove the year-over-year decline in profitability. Had average fuel prices remained at third quarter 2010 levels, third quarter 2011 fuel expense would have been approximately $360 million lower.

-The Company reported a net profit excluding special items for the third quarter 2011 of $95 million, or $0.51 per diluted share. This compares to the third quarter 2010 net profit excluding special items of $243 million, or $1.23 per diluted share.

-3rd highest revenue in company history

Source: http://phx.corporate-ir.net/phoenix....rticle_print&ID=1622469&highlight=
E135/E140/E145/E70/E75/E90/CR2/CR7/CR9/717/732/733/734/735/73G/738/739/752/753/762/772/77W/319/320/321/333/343
 
HPRamper
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RE: US Reports 3Q Profit

Thu Oct 27, 2011 8:17 pm

I wasn't expecting this high a profit. Keep it up US!
 
727LOVER
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RE: US Reports 3Q Profit

Thu Oct 27, 2011 9:08 pm

3rd highest revenue in company history.......Does this refer to old US, HP, or LCC?
I feel woozy....what did you put in that Pudding Pop?
 
nutsaboutplanes
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RE: US Reports 3Q Profit

Thu Oct 27, 2011 9:55 pm

The earnings call was very interesting.....there is great frustration with the proposed increase in security taxes and a pretty negative opinion of the government...at least that is the feeling that I got.

They also expressed opposition to the EU emissions trading scheme and to any increase in the existing tax burden on the industry.

There were also several comments on AA.....sounds like nothing really too interesting with Doug basically saying that AA would have to solve their cost/ internal issues before anything could even be looked at.   
American Airlines, US Airways, Alaska Airlines, Northwest Airlines, America West Airlines, USAFR
 
Flighty
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RE: US Reports 3Q Profit

Thu Oct 27, 2011 10:35 pm

US is not showing the type of profit margin that UAL or DAL are. But, they are getting along ok, it seems.
 
usxguy
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RE: US Reports 3Q Profit

Thu Oct 27, 2011 11:20 pm

Quoting 727LOVER (Reply 2):
3rd highest revenue in company history.......Does this refer to old US, HP, or LCC?

Considering that HP has never even come close to the revenues at the old US, I'd think it refers to the company known as USAirways. Old USAir used to *MINT* money up and down the east coast.... which is why its pilots were among the highest paid for narrow-body crews.
xx
 
USAirALB
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RE: US Reports 3Q Profit

Fri Oct 28, 2011 12:47 am

Quoting Nutsaboutplanes (Reply 3):

There were also several comments on AA.....sounds like nothing really too interesting with Doug basically saying that AA would have to solve their cost/ internal issues before anything could even be looked at.

Which sounds to me like US doesn't really want to get in bed with AA..I think they would rather get together with UA.

Quoting Flighty (Reply 4):
US is not showing the type of profit margin that UAL or DAL are. But, they are getting along ok, it seems.

True, but UA and DL are much larger than US.
E135/E140/E145/E70/E75/E90/CR2/CR7/CR9/717/732/733/734/735/73G/738/739/752/753/762/772/77W/319/320/321/333/343
 
FutureUScapt
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RE: US Reports 3Q Profit

Fri Oct 28, 2011 1:33 am

Quoting USAirALB (Reply 6):

True, but UA and DL are much larger than US.

Yes, but the profit margin is not directly related to the size of an airline. In fact one of the main reasons for looking at companies' profits on a margin basis is that it allows for an easy comparison between that company and its peers.

But there are differences between DL/UA and US, most notably international presences. Both have extensive transatlantic networks that do very well in Q3. Furthermore when transpacific sector does well, that adds a nice extra boost to the bottom line that US would not see.
 
USAirALB
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RE: US Reports 3Q Profit

Fri Oct 28, 2011 4:42 pm

Quoting FutureUScapt (Reply 7):
Both have extensive transatlantic networks that do very well in Q3.

Don't European flights do best in Q3?

Quoting FutureUScapt (Reply 7):
that adds a nice extra boost to the bottom line that US would not see.

My hope is one they, they will see..
E135/E140/E145/E70/E75/E90/CR2/CR7/CR9/717/732/733/734/735/73G/738/739/752/753/762/772/77W/319/320/321/333/343
 
SonomaFlyer
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RE: US Reports 3Q Profit

Fri Oct 28, 2011 5:04 pm

Quoting USAirALB (Reply 6):
Which sounds to me like US doesn't really want to get in bed with AA..I think they would rather get together with UA.

Not going to happen. Those airlines are digesting their recent mergers and UA still needs to sort through its contracts etc. Frankly, UA and DL don't really need US. The only thing they have that folks might want are some slots and perhaps some of the delivery slots on the incoming widebodies.
 
airlinespotter
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RE: US Reports 3Q Profit

Fri Oct 28, 2011 6:02 pm

Perhaps just dating but not marring  
 
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etops1
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RE: US Reports 3Q Profit

Fri Oct 28, 2011 9:20 pm

I love it when people come on here and say " Not gonna happen" .What the hell do you know? If there is something to be said about the airline industry it's that its' very unpredictable. ANYTHING can happen .Don't kid yourself. Smisek could very well go after US once he is done with his merger. A combined UA is still missing a southeast presence (CLT) . I am not saying this will or will not happen but you never know . Stranger things have occured.
 
LipeGIG
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RE: US Reports 3Q Profit

Sat Oct 29, 2011 2:29 am

Quoting USAirALB (Thread starter):
-3rd highest revenue in company history
Quoting 727LOVER (Reply 2):
3rd highest revenue in company history.......Does this refer to old US, HP, or LCC?
Quoting usxguy (Reply 5):
Considering that HP has never even come close to the revenues at the old US, I'd think it refers to the company known as USAirways. Old USAir used to *MINT* money up and down the east coast.... which is why its pilots were among the highest paid for narrow-body crews.

It says on the release 3rd quarter highest revenue in company history, not the 3rd highest revenue, which do not make sense to compare.
New York + Rio de Janeiro = One of the best combinations !
 
usairways85
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RE: US Reports 3Q Profit

Sat Oct 29, 2011 2:50 am

Quoting etops1 (Reply 11):
I love it when people come on here and say " Not gonna happen" .What the hell do you know? If there is something to be said about the airline industry it's that its' very unpredictable. ANYTHING can happen .Don't kid yourself. Smisek could very well go after US once he is done with his merger. A combined UA is still missing a southeast presence (CLT) . I am not saying this will or will not happen but you never know . Stranger things have occured.

While I agree with you in the fact that who really knows what's going to happen I have to say the track history of recent mergers is to rationalize and close hubs (PIT, LAS, STL, CVG and MEM are much smaller than they used to be). With the number of hubs UA now has (EWR, IAD, ORD, IAH, SFO, DEN, LAX (?) ) I'm not so sure they need any more.

Also yes I know CLT may be a reasonable sized market and it may be growing but by and large it's a connecting hub and with that in mind IAH and IAD should be able to compete for a good amount of that connecting traffic.
 
flyguy89
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RE: US Reports 3Q Profit

Sat Oct 29, 2011 7:54 pm

Quoting Flighty (Reply 4):
US is not showing the type of profit margin that UAL or DAL are. But, they are getting along ok, it seems.

First off, congrats to US, it's truly been shown to be a feat to pump out any type of profit in this environment, so well done! Second, I don't know why anybody is surprised by their profit margins. It goes back to the problem of what kind of carrier does US want to be. At the moment they are by far the most spartan of the legacy carriers, use LCC as their stock ticker, and call themselves the word's largest LCC....so it should be no surprise that their margins lag behind UA and DL. Now, whether or not these are the type of margins US expected or whether or not they want to improve in this area is up for debate.

Quoting usairways85 (Reply 13):
Quoting etops1 (Reply 11):
I love it when people come on here and say " Not gonna happen" .What the hell do you know? If there is something to be said about the airline industry it's that its' very unpredictable. ANYTHING can happen .Don't kid yourself. Smisek could very well go after US once he is done with his merger. A combined UA is still missing a southeast presence (CLT) . I am not saying this will or will not happen but you never know . Stranger things have occured.

While I agree with you in the fact that who really knows what's going to happen I have to say the track history of recent mergers is to rationalize and close hubs (PIT, LAS, STL, CVG and MEM are much smaller than they used to be). With the number of hubs UA now has (EWR, IAD, ORD, IAH, SFO, DEN, LAX (?) ) I'm not so sure they need any more.

Also yes I know CLT may be a reasonable sized market and it may be growing but by and large it's a connecting hub and with that in mind IAH and IAD should be able to compete for a good amount of that connecting traffic.

  
I think we're done with mergers for the near future, 5+ years down the line though, who knows what we'll be seeing in the airline industry.
 
kiwiandrew

RE: US Reports 3Q Profit

Sat Oct 29, 2011 8:47 pm

Quoting etops1 (Reply 11):
A combined UA is still missing a southeast presence (CLT) .

I agree that CLT would fill a network gap for UA, and I don't believe that IAD/IAH can satisfactorily cover that gap, however, I see CLT as the only part of US that would be of value to UA. I can't see them wanting ( or being allowed) to have EWR/PHL/IAD and similarly PHX is awkwardly placed in between SFO/LAX/DEN. If US decided they wanted to sell CLT ( and I can't think of any reason why they would) then I am sure that UA would be interested in spite of not yet having completed the merger, but I don't see UA being interested in the whole carrier. In any case, I think this result shows that US does not desperately need to merge with anyone. They would be very desirable as they are for OW if the "unthinkable" should happen and AA belly up ... yes, I know , never going to happen, AA is 'too big to fail' yada, yada, yada.
 
usflyer msp
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RE: US Reports 3Q Profit

Sat Oct 29, 2011 8:57 pm

Quoting flyguy89 (Reply 14):

First off, congrats to US, it's truly been shown to be a feat to pump out any type of profit in this environment, so well done! Second, I don't know why anybody is surprised by their profit margins. It goes back to the problem of what kind of carrier does US want to be. At the moment they are by far the most spartan of the legacy carriers, use LCC as their stock ticker, and call themselves the word's largest LCC....so it should be no surprise that their margins lag behind UA and DL. Now, whether or not these are the type of margins US expected or whether or not they want to improve in this area is up for debate.

Their margins should actually be higher than DL or UA if they are an LCC. LCC refers to operating costs not airfares. US has lower margins because it generally has secondary hubs that are reliant upon connecting passengers and lacks international exposure beyond Mexico/Caribbean/Europe. Asia/Latin America/Africa is where the strongest revenue growth has been for most carriers so US did not benefit.
 
mattya9
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RE: US Reports 3Q Profit

Sun Oct 30, 2011 12:42 am

Wasn't US supposed to be bankrupt and/or out of business by now? I mean that seemed (still seems a little bit) to be a lot of people's opinion of them since the industry went under back in 2008; US has always seemed to be the red-headed step child that a lot of people didn't like and wished they would just go away and yet they're still here making money (not a lot but + is ALWAYS better than - ). I know they don't have the best product on the market and their service is sometimes lacking but most of the time they get you from A to B and with little hassle. Good job US and keep up the good work.
"You can do anything once."
 
cjpmaestro
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RE: US Reports 3Q Profit

Sun Oct 30, 2011 1:11 am

Good job US and keep up the good work.


Agree. I lived in Seattle and was an avid Alaska flyer, but when I knew I was moving to Phoenix I switched to US and have been flying them since. They are not perfect, but I've not had a cancellation, I'd say 95% of my flights have been on-time or early (through Phoenix) and I've flow international through Philadelphia twice (once to MAD and the other FCO) with no problem. The Phoenix base (ex-HP) have always been great and I hear a lot of demonizing of the East operation, but have had pleasant experiences flying through CLT and PHL. Overall, I think it's good management and the focus on the three hubs and DCA as the focus city seem to be the right move and clearly making money. I'm thrilled about the first class seats on the Express fleets as many of my flights are to express cities and my flights on the A321 seem to have increased and I'm loving the new birds.

I have a couple wishes: 1) Some international flights from PHX to Europe; 2) Wide-bodies to Hawaii (still want to fly Hawaiian from Phoenix - my personal preference); 3) Increased service from PHX - particularly to MSY (I'll go through CLT just for miles), FAR, BIL and MFR (I know they flew to MSY, BIL and MFR - but those flights were always full so not sure if was a 9/11 reaction).

Again - congrats US despite what people say, you are doing things right.