For an opposing view, I bring you Holly Hegemens planebusniess comments:
"Finally, TWA also reported earnings today. The airline reported a loss of $34.8 million, or $0.49 cents per share. But more importantly, the airline said that at the end of the quarter, it was sitting on about $157 million in cash. We see this number as very significant, as most of you know TWA usually sheds a fair amount of revenue in both the fourth and first quarters of the year. Or at least historically this has been the case.
With oil prices continuing to sit at around $34/barrel and change, and with the fact that TWA is not hedged for fuel for fourth or first quarter, our most pressing issue here is one of the ability of the airline to weather the winter.
Granted, the airline is certainly more fuel-efficient than it was, but the revenue side of the equation still lags. In fact, in terms of costs, the airline did well, as the airline saw CASM increase only 3.3%, excluding the costs associated with the IAM contract ratification.
The numbers tell the story. For the quarter, the airline saw operating revenues increase 11%, while operating expenses increased 5.2%. Meanwhile, operating income was a $10.9 million loss.
Operationally, the airline saw load factor gain 1.4 points to 76.1%, while yield was up 4.2%, and RASM was up 6%. CASM, as we said was up 3.3%.
Overall, I guess what strikes us most is that even with very strict clamp-downs on costs, the airline still could not make money for the quarter.