flyguychi
Topic Author
Posts: 55
Joined: Mon Mar 10, 2014 7:43 pm

US Airline Q2 2017 Results Roundup

Fri Jul 28, 2017 11:48 pm

Wanted to consolidate all the Q2 2017 Financial Results in one spot. Feel free to discuss below!

OPERATING PROFIT/MARGIN

Alaska $493 Million 23.5%
Southwest $1.25 Billion 21.8%
Hawaiian $142 Million 21%
Jetblue $354 Million 19.2%
Delta $2.03 Billion 18.8%
Spirit $132 Million 18.8%
United $1.4 Billion 14%
American $1.54 Billion 13.8%

NET PROFIT/MARGIN

Alaska $296 Million 14.1%
Southwest. $746 Million 12.9%
Hawaiian. $80 Million. 11.9%
Jetblue. $211 Million. 11.5%
Delta $1.22 Billion. 11.34%
Spirit. $78 Million. 11.1%
United. $818 Million. 8.2%
American. $803 Million. 7.23%

All airlines are humming along here in the US! Congratulations to all for operating in a truly Golden Age of airline finances!
 
flyguychi
Topic Author
Posts: 55
Joined: Mon Mar 10, 2014 7:43 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 12:17 am

For a breakdown of Costs and Revenue (Note: These are not stage length adjusted)

CASM (Cost per available seat mile in cents excluding fuel, special items and profit sharing)

Spirit 5.83 Up 10%
Alaska 7.94 Up 2.1%
Jetblue 8.16 Up 5.1%
Southwest 8.2 Up 5.3%
Hawaiian 8.98 Up 5.6%
United 9.87 Up 3.1%
Delta 10.24 Up 7.3%
American 10.49 Up 6.8%

RASM (Revenue per available seat mile in cents)

Spirit 9.62 Up 5.7%
Alaska 13.46 Down 0.4%
Jetblue 12.93 Up 7%
Southwest 14.3 Up 1.5%
Hawaiian 14.26 Up 9.2%
United 14.82 Up 2.1%
Delta 16.19 Up 2.7%
American 15.48 Up 5.7%
 
flyguychi
Topic Author
Posts: 55
Joined: Mon Mar 10, 2014 7:43 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 12:27 am

RASM-CASM Margin in Cents

Spirit 3.79
Alaska 5.52
Jetblue 4.77
Southwest 6.1
Hawaiian 5.28
United 4.95
Delta 5.95
American 4.99
 
[email protected]
Posts: 16616
Joined: Sat Jan 13, 2001 6:29 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 12:31 am

Thanks for the summary.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
Prost
Posts: 2477
Joined: Wed Oct 03, 2012 6:23 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 2:05 am

Is American still have a lot of integration costs baked into these number? I would have expected AA/UA/DL to have similar profits, but UA/AA seem similar, DL seems significantly higher.
 
hiflyeras
Posts: 2055
Joined: Thu Jul 14, 2011 6:48 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 2:14 am

Great comparison...thanks! G4 came out today and it didn't look so rosy. Would love to see them added as well.
 
flyguychi
Topic Author
Posts: 55
Joined: Mon Mar 10, 2014 7:43 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 3:01 am

Allegiant
Operating Profit/Margin $85.2 Million 21.25%
Net Profit/Margin $48.5 Million 12.13%
CASM 6.42 Up 13.2%
RASM 11.07 Up 3.01%
RASM-CASM Margin 4.65
 
727200
Posts: 633
Joined: Fri Mar 17, 2017 5:31 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 3:23 am

Based on net, the Big 3 are coasting along, SW right behind and then the rest of the pack is outside the stadium in the parking lot without a ticket to get in.
 
azjubilee
Posts: 3708
Joined: Sat Apr 29, 2000 5:26 am

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 3:32 am

727200 wrote:
Based on net, the Big 3 are coasting along, SW right behind and then the rest of the pack is outside the stadium in the parking lot without a ticket to get in.


Not sure how you're looking at the numbers, but it looks like overall great numbers for all carriers. Not sure what are you referring to with the outside the stadium comment?
 
PlanesNTrains
Posts: 9526
Joined: Tue Feb 01, 2005 4:19 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 3:41 am

727200 wrote:
Based on net, the Big 3 are coasting along, SW right behind and then the rest of the pack is outside the stadium in the parking lot without a ticket to get in.


Sure - they're the biggest so they should have more net. Unfortunately they have lower margins so those profits come through spending more to earn a dollar than some of the smaller guys.
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
pezzy669
Posts: 182
Joined: Sun Oct 28, 2012 10:30 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 5:43 am

Glad to see the US carriers making money so they can re-invest in the product. I don't much follow nor have flown AA or UA but as a regular DL flyer (30-35 segments annually) I see the continuous improvements in the onboard product.

Congrats to all the carriers for another profitable quarter! I know people miss the days of many more carriers but it was an unsustainable environment, now that things have been consolidated and the carriers have stabilized financially they can refine their offerings to the public.
 
airplaneboy
Posts: 684
Joined: Sat May 15, 2004 11:59 am

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 7:16 am

Pilots at Spirit, JetBlue, and Alaska (as well as Frontier) are all currently in contract negotiations with management and morale is low due to their lower pay rates and current work rules in comparison to the big 4. It will be interesting to see if they will be successful with negotiating industry standard wages and work rules, and if so- how that will impact the bottom line down the road at each carrier.
 
VC10er
Posts: 4132
Joined: Tue Feb 20, 2007 6:25 am

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 3:25 pm

[quote="pezzy669"]Glad to see the US carriers making money so they can re-invest in the product. I don't much follow nor have flown AA or UA but as a regular DL flyer (30-35 segments annually) I see the continuous improvements in the onboard product.

"Investment" is a big word! And it's the part that "we" the passengers should feel. When times are bad, that's a great "excuse" to hold off investment, when companies are making tons of money the argument is then "why? We obviously don't need to invest" (I speak of investment that gives more and better to the consumer) - at least that was the 2 tunes my old public company sang. And in their employees! Who drive much of the success of an airline (IMHO)

So, with these great numbers, and if their forecast is good, how will the bigger players invest and improve the experience for their customers?

Regardless, it's good to hear!
To Most the Sky is The Limit, For me, the Sky is Home.
 
727200
Posts: 633
Joined: Fri Mar 17, 2017 5:31 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 4:30 pm

azjubilee wrote:
727200 wrote:
Based on net, the Big 3 are coasting along, SW right behind and then the rest of the pack is outside the stadium in the parking lot without a ticket to get in.


Not sure how you're looking at the numbers, but it looks like overall great numbers for all carriers. Not sure what are you referring to with the outside the stadium comment?



The disparity between the big 3 and the rest; the gap is so large, there isn't anyway to catch them. So if you are a niche player, they will be confined to that and hopefully do not attempt to go out of it or they will be squished like a bug on the windshield.
 
azjubilee
Posts: 3708
Joined: Sat Apr 29, 2000 5:26 am

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 4:37 pm

727200 wrote:
azjubilee wrote:
727200 wrote:
Based on net, the Big 3 are coasting along, SW right behind and then the rest of the pack is outside the stadium in the parking lot without a ticket to get in.


Not sure how you're looking at the numbers, but it looks like overall great numbers for all carriers. Not sure what are you referring to with the outside the stadium comment?



The disparity between the big 3 and the rest; the gap is so large, there isn't anyway to catch them. So if you are a niche player, they will be confined to that and hopefully do not attempt to go out of it or they will be squished like a bug on the windshield.


Are you suggesting the smaller carriers are less successful, because their numbers are smaller? Seems like flawed analysis to me.
 
ty97
Posts: 659
Joined: Fri May 15, 2015 1:06 am

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 4:48 pm

Prost wrote:
Is American still have a lot of integration costs baked into these number? I would have expected AA/UA/DL to have similar profits, but UA/AA seem similar, DL seems significantly higher.


AA having the lowest margin caught my eye as well, and was wondering if integration is a factor in that. IIRC, the deal to get the unions on board with the merger also resulted in significant pay increases (immediately and over time) for crew, which could be dragging on the numbers (though I don't know how those wages compare to UA/DL).
 
727200
Posts: 633
Joined: Fri Mar 17, 2017 5:31 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 4:50 pm

Did I say they were less successful? Read my quote as its stated and don't draw your agenda into it. As they say in sales school day one: K.I.S.S.
 
PIEAvantiP180
Posts: 520
Joined: Tue Sep 15, 2009 6:04 am

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 7:45 pm

ty97 wrote:
Prost wrote:
Is American still have a lot of integration costs baked into these number? I would have expected AA/UA/DL to have similar profits, but UA/AA seem similar, DL seems significantly higher.


AA having the lowest margin caught my eye as well, and was wondering if integration is a factor in that. IIRC, the deal to get the unions on board with the merger also resulted in significant pay increases (immediately and over time) for crew, which could be dragging on the numbers (though I don't know how those wages compare to UA/DL).



Should there even be any major merger integration costs at this point. Merger was announced Dec 2013, SOC was achieved by 08Apr2015. We are 3.5 years from merger announcement and over 2 years from soc. Reading thru their press release i did not see any major expenses relating to merger integration, did anyone hear anything different on the conference call? Have not had a chance to listen to it yet. Also not sure if it was last year or the year before AA had better results in q2 and q3 than DL. I know AA, UA, and DL have given their employees some major pay raises especially the pilots but for AA to be 3rd place and that far behind DL net to net profit is puzzling.
 
MIflyer12
Posts: 6073
Joined: Mon Feb 18, 2013 11:58 pm

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 8:07 pm

PIEAvantiP180 wrote:


Should there even be any major merger integration costs at this point.


The 10-Q filing cited merger expense of $68 million in the quarter vs. $97 million in 2Q2016.

http://phx.corporate-ir.net/phoenix.zht ... p=irol-sec

All the major U.S. carriers are making money but some are making more than others. There can be a lot of noise quarter to quarter -- mark-to-market adjustments on fuel hedges (not AA, but some other carriers) can obscure trends on RASM and CASM, for example. Big retro payments on pilot contracts is another problem making direct carrier-to-carrier comps difficult recently.
 
Varsity1
Posts: 1988
Joined: Mon May 02, 2016 4:55 am

Re: US Airline Q2 2017 Results Roundup

Sat Jul 29, 2017 8:46 pm

AA's fleet renewal is large and carries alot of debt. I still think the AA hub situation is a mess.
"PPRuNe will no longer allow discussions regarding Etihad Airlines, its employees, executives, agents, or other representatives. Such threads will be deleted." - ME3 thug airlines suing anyone who brings negative information public..
 
tortugamon
Posts: 6795
Joined: Tue Apr 09, 2013 11:14 pm

Re: US Airline Q2 2017 Results Roundup

Sun Jul 30, 2017 3:06 am

727200 wrote:
The disparity between the big 3 and the rest; the gap is so large, there isn't anyway to catch them. So if you are a niche player, they will be confined to that and hopefully do not attempt to go out of it or they will be squished like a bug on the windshield.


The larger carriers make solid $ but the smaller carriers have both higher profitability %-wise and have significantly higher capacity growth rates. The longer the US3 sit on their hands growth-wise, the more market share they will lose.

So long as the smaller carriers can continue to grow in a profitable way, I don't see how the US3 'squash them like a bug'. Acquisition is the name of the game and I don't think we will see the US4 being allowed to make acquisitions.

tortugamon

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