panamair wrote:For all those who are talking about how well HKG is working for UA, something that went seemingly unnoticed when UA reported Q4 and 2018 full year results was the $206m impairment charge that UA took against their HKG routes
From their Q4 2018 results/financial statements:
"....The company conducted its annual impairment review of intangible assets in the fourth quarter of 2018, which consisted of a comparison of the book value of specific assets to the fair value of those assets calculated using the discounted cash flow method. Due to increased costs without sufficient corresponding increases in revenue in the Hong Kong market, the company determined that the value of its Hong Kong routes had been impaired. Accordingly, in the fourth quarter of 2018, the company recorded a special non-cash impairment charge of $206 million ($160 million net of taxes) associated with its Hong Kong routes...."
https://seekingalpha.com/news/3421262-u ... ong-routes
I may reflect the termination of fifth freedom inter-Asia routes for Hong Kong market.
In fact, except the termination of inter-Asia routes, UA has increased the capacity for HK- US routes.
Guam-Hong Kong has increased from 4 weekly to 6 weekly and EWR-HKG will update from 772er to 77W in March 2019.