ADrum23 wrote:And Mr. Parker still has a job why?
Lol no clue: AAL investors have been asking this question for a long time.
sagechan wrote:ORDfan wrote:UpNAWAy wrote:So to be sure I understand the majority here flying routes that never made money is genius, bold and aggressive airline management and to stop flying routes that never made money and replacing them with ones likely to make money is a disaster and a retreat?
Do I have the correct understanding?
So if I'm AA management, instead of retreating and deferring to my main competitor at ORD, I would be trying like hell to figure out how UA is making money on routes where AA cannot make money. I think that is the point.
In case you were wondering: UAL is at all-time highs... yes you read that right, meanwhile AAL is flirting with 2 year lows. If you want to talk about profits and airline management: let's put that in perspective and assign credit (and blame) where they are due. You can't tell me AA is doing it right, while they are worst performing publicly-traded airline over its lifetime.
Every other major publicly traded airline in the US (LUV, UAL, DAL) has beaten AAL returns since 2006: UAL (up 148%), LUV (up 269%), DAL (up 184%), AAL (up 30%). It's certainly not bold and aggressive to be the perennial industry laggard.
I think whatever their ORD and p2p "strategy" for smaller hubs like PHX, CLT, and PHX has clearly not been working, and its certainly failed the test for profits and revenue growth, as indicted below. I am betting on more of the same for them.
While I personally believe Parker fails when it comes to trying to focus on creating a true world class product, by under investing in standardization, upping soft product quality, and failing to get labor relations improved. I also find this post to be very disingenuous by using a 2006 baseline. AA was the only major airline to (stupidly) not go through CH11 reorganization post 9/11 and the AA/US merger was years later than DL/NW & UA/CO. Looking at returns straight up over that period is not a valid comparison. Recent results are mostly comparable, though one would expect there is still some gains to be made from final implementation of merger issues in the near future, and post 2020 fleet reliability improvements as some unreliable fleets exit.
In the past 2 years, UAL is up 65.4%, S&P 500 index is up 31.2%, and AAL is up 7.2%. The 12 month and YTD performance puts in the negative (YTD down a whopping 26%). It's been a dud. Their strategy for growth (and profits) has been a failure, and you are seeing that reflected in their route and Hub-planning, which has of course been the driver for their revenues/profits.
Their ORD presence (and other dubious route structures) are a living testament to their failures and incompetence, and AAL company shareholders agree (that's why they've been selling their shares all year long), while the rest of the industry is thriving.