LAXintl
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Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 4:06 pm

Well that's two quarters of net profit, and four quarters of operating profit now.   


Virgin America reported an operating income of $44.4 million and net income of $33.5 million on total revenue of $387.3 million for the 3rd quarter. Operating margin was 11.5%.


Full press release:
http://finance.yahoo.com/news/virgin...eports-record-third-090100689.html

=
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F9Animal
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 6:40 pm

Good for them!!! They totally deserve it!
I Am A Different Animal!!
 
Kleiner
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 6:47 pm

I'm thrilled to hear this.

It's one thing to promote when you're bleeding (and be loved). It's another to start promoting when you have profit.

I think you're going to really see momentum moving forward.
 
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DeltaMD90
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 6:58 pm

I know I always sound like a negative Nancy in VX threads, but I am not a financial wizard... are there any hidden woes that aren't plainly obvious? In other words, is this somewhat of a spin when VX is still fighting an uphill battle?

Either way, seems like VX is indeed doing a lot better. Congrats, I honestly thought they weren't going to make it
Ironically I have never flown a Delta MD-90 :)
 
VC10DC10
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 7:04 pm

1. Congrats to VX.
2. Wow, how did their RASM improve so dramatically?
3. $156.9 million in unrestricted cash still sounds low to me.
4. I must have missed hearing about their debt restructuring. What exactly did they do?
 
LAXintl
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 7:13 pm

Quoting VC10DC10 (Reply 4):
3. $156.9 million in unrestricted cash still sounds low to me.

Remember they are privately held. Cash as been down to $25-50mil range before regularly.

Money can be held off the books by owners. Even Spirit pre-IPO often had low cash onhand.

Quoting VC10DC10 (Reply 4):
4. I must have missed hearing about their debt restructuring. What exactly did they do?

Back in the spring investors converted $290mil debt (out of $800mil in total) into equity which would trim carriers interest expense by $20 annually. Investors also established $75mil debt financing facility.
From the desert to the sea, to all of Southern California
 
FCAFLYBOY
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 7:13 pm

Way to go VX excellent news, hope it continues, the absolute BEST airline in North America bar none. I'm also a big B6 fan but no one touches VX for product, service and innovation.
 
VC10DC10
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 7:22 pm

Quoting LAXintl (Reply 5):

Back in the spring investors converted $290mil debt (out of $800mil in total) into equity which would trim carriers interest expense by $20 annually. Investors also established $75mil debt financing facility.

Thanks for the info. Did the foreign-ownership laws have any impact on this?
 
SANFan
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 7:32 pm

Nice to see more (apparently) encouraging financial news from VX. They might just make it after all!

I'm still not a fan of some facets of their business model (e.g., route structure) but maybe there will be some re-thinking going forward if the profitable quarters continue.

In any case, Congratulations and continued Good Luck to all the folks collecting paychecks from VX -- nice job!

bb
 
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EA CO AS
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 8:56 pm

Hat-tip to the people at VX; still not sold on them being a viable entity for the long term but so far they appear to be turning a corner. They may want to keep their heads down while AS/UA/DL wage war up and down the West Coast though.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
usflyguy
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 11:56 pm

Good. Now they can start paying their employees enough so that they don't have to collect public assistance.
My post is my ideas and my opinions only, I do not represent the ideas or opinions of anyone else or company.
 
Prost
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Tue Nov 12, 2013 11:57 pm

The consolidating industry raising air fares is helping all carriers. I'm glad to see a worthy competitor such as VX doing well.
 
OB1504
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 12:45 am

Quoting usflyguy (Reply 10):
Good. Now they can start paying their employees enough so that they don't have to collect public assistance.

It's my understanding that their starting pay, at least for airport staff, is on par with those of other airlines.

That's not to say that it's above poverty level, but it's not like VX is the only one guilty of this.
 
nutsaboutplanes
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 2:36 am

Quoting EA CO AS (Reply 9):
Hat-tip to the people at VX; still not sold on them being a viable entity for the long term but so far they appear to be turning a corner. They may want to keep their heads down while AS/UA/DL wage war up and down the West Coast though.

I think that this is the most interesting event going on in the US Airline industry at this time outside of the US AA merger......the pissing match cant last forever.
American Airlines, US Airways, Alaska Airlines, Northwest Airlines, America West Airlines, USAFR
 
MaverickM11
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 2:55 am

Quoting VC10DC10 (Reply 4):
2. Wow, how did their RASM improve so dramatically?

They shrank 4% YOY. They also reduced transcons quite a bit as their stage went down by 7%, dropping long, low fare flying for shorter, low fare flying.

Quoting Prost (Reply 11):

The consolidating industry raising air fares is helping all carriers

  
E pur si muove -Galileo
 
ridgid727
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 2:56 am

Quoting MaverickM11 (Reply 14):
They shrank 4% YOY. They also reduced transcons quite a bit as their stage went down by 7%, dropping long, low fare flying for shorter, low fare flying.

And its obviously working for them.
 
MaverickM11
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 3:05 am

Quoting RIDGID727 (Reply 15):
And its obviously working for them.

Yep. They and UA can both shrink to profitability.
E pur si muove -Galileo
 
phxa340
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 3:42 am

Quoting Prost (Reply 11):
The consolidating industry raising air fares is helping all carriers.

Until potential entrants see all the profits then jump in themselves and create another fare bloodbath  
 
slcdeltarumd11
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 5:18 am

I wonder if they can get any slots from the US/AA merger or gates? I thought that Southwest and JetBlue was suppose to get first shots at them but I hope virgin America and spirit are allowed to get something to be fair.
 
BoeingMerica
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 8:55 am

Quoting DeltaMD90 (Reply 3):

When it comes to GAAP it is pretty black and white. There is certainly some wiggle room in how you define certain assets and expenditures but in the end, VX books had to match auditor opinions. So I would tend to say no.

However, if you want to know if there is something 'hiding in plain sight' on the financials you need to crack open the quarterly reports and dig through them yourself. My guess is nothing rather significant is on the horizon, check the footnotes out.

BoeingMerica
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lightsaber
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 2:40 pm

Great news for VX. I'm impressed. They blew past my expectations by a LARGE factor.   

Quoting LAXintl (Thread starter):
Operating margin was 11.5%.

Wait, this is a VX thread, right?     
Double digit operating margins... wow. Operating like a real business.   

Quoting EA CO AS (Reply 9):
They may want to keep their heads down while AS/UA/DL wage war up and down the West Coast though.

I wish I had time to take advantage of these fares!

Quoting nutsaboutplanes (Reply 13):
I think that this is the most interesting event going on in the US Airline industry at this time outside of the US AA merger......the pissing match cant last forever.

  

Quoting Prost (Reply 11):
The consolidating industry raising air fares is helping all carriers.

Yes, but VX still did far better than any expectations I'm aware of.

Lightsaber
"They did not know it was impossible, so they did it!" - Mark Twain
 
point2point
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Wed Nov 13, 2013 4:36 pm

From my count, this airline has 32 nonstop routes:

SFO - 1) PDX, 2) SEA, 3) BOS, 4) ORD, 5) EWR, 6) JFK, 7) PHL, 8) DCA, 9) IAD, 10) LAS, 11) DFW, 12) AUS, 13) FLL, 14) PSP, 15) SAN, 16) LAX 17) CUN, 18) PVR, 19) SJD

LAX - 20) SJC, 21) SEA, 22) BOS, 23) ORD, 24) EWR, 25) JFK, 26) IAD, 27) DWF, 28) FLL, 29) MCO, 30) LAS, 31) CUN

LAS - 32) JFK

So with a net income of net income of $33.5 million, it looks as though one can calculate that it's about $1M per route?

Anyways, congrats to all for this success. And as long as they pull in about 2 cents more than they spend, it looks as though they're going to be around for a while, eh?

 
 
rickabone
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Thu Nov 14, 2013 3:52 am

As a controller at SFO, I really hope they stick around... Our operations have increased significantly with them around (not only due to them, but due to UAL, DAL & SWA increasing their flights in part to compete with them) and that led to a nice little pay raise for me.  
 
infinit
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Fri Nov 15, 2013 12:56 am

Never been on VX but I'm heard such wonderful things about them.

SQ has started codesharing with them.. over their StarA partners UA which they don't have a single codeshare with.

Will try VX the next time I have a domestic flight in the US
 
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DesertFlyer
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Fri Nov 15, 2013 1:45 am

Quoting rickabone (Reply 22):
As a controller at SFO

I'm happy to hear you got a pay raise to deal with the extra traffic. You guys are always professional and efficient on the radios. Glad to call SFO my home airport.

As for VX, they really are a disruptor. Not just about lowering fares like a LCC, they're also about improving the experience of air travel. For all their faults, it's hard not to like them.
 
rickabone
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RE: Virgin America Reports Q3 Profit - $33.5mil Net

Fri Nov 15, 2013 3:34 am

Quoting DesertFlyer (Reply 24):
I'm happy to hear you got a pay raise to deal with the extra traffic. You guys are always professional and efficient on the radios. Glad to call SFO my home airport.

As for VX, they really are a disruptor. Not just about lowering fares like a LCC, they're also about improving the experience of air travel. For all their faults, it's hard not to like them.

Thanks... Come up and visit sometime. And you are right... Even if they failed as an airline, I feel like their presence forced other airlines to up their standards of service, entertainment and attitude. That will be a lasting positive throughout the industry.