Flybird
Topic Author
Posts: 33
Joined: Thu Oct 26, 2017 6:03 pm

United post Q3 2018 earnings

Tue Oct 16, 2018 8:37 pm

United Airlines Q3 profit jumps 30% amidst rising fuel costs

https://news.alphastreet.com/united-air ... k-results/

Revenue grew by 11.2% to $11 billion.

Looking ahead into the full year 2018, the company now expects adjusted EPS in the range of $8.00 to $8.75. The company currently expects to recapture about 90% of the estimated $2.5 billion year-over-year increase in full-year 2018 fuel expense.

Consolidated passenger revenue per available seat mile (PRASM) increased 6.1 percent year-over-year, above the high end of the company's third-quarter 2018 guidance range of up 4 percent to 6 percent.

UAL's mid-continent hubs in Chicago, Denver and Houston had year-over-year capacity growth of 9.7 percent in the third quarter and led the system in unit revenue growth performance in the quarter.

"Our growth plan has been essential to our success, and we're more confident than ever we'll achieve the ambitious adjusted earnings per share1 target of $11 to $13 we laid out for 2020." - Oscar Munoz, CEO of United Airlines.

Official release: https://hub.united.com/united-airlines- ... 74490.html
Last edited by Flybird on Tue Oct 16, 2018 8:40 pm, edited 2 times in total.
 
flyguy84
Posts: 770
Joined: Thu Dec 22, 2016 7:26 pm

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 8:38 pm

Revenue was up 11%, PRASM up 6% and they re-captured almost 100% of increased fuel costs for the quarter. The growth plan is working.

https://hub.united.com/2018-10-16-unite ... 74490.html
SFO
 
LHUSA
Posts: 801
Joined: Wed Aug 24, 2005 10:15 am

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 8:54 pm

Great, solid results proving theirs strategy is working. The after-hours market appears to be very happy. Well done United!
 
tphuang
Posts: 3520
Joined: Tue Mar 14, 2017 2:04 pm

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 8:56 pm

A really nice quarter again. One thing to remember is that last year Q3 was a really weak quarter for UA due to the aftermath of the Dr Dao incident and more important the hurricane that hit Houston. But overall, they are getting closer to DL. Pretty good achievement considering where they were last year.
 
jumbojet
Posts: 2956
Joined: Mon Dec 29, 2003 3:01 am

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 9:21 pm

tphuang wrote:
A really nice quarter again. . But overall, they are getting closer to DL. Pretty good achievement considering where they were last year.


Yes, a nice quarter.

Getting closer to Delta in what metric? United Pre-tax earnings 1.1 Billion. Delta 1.6 Billion. Difference is $500,000,000 or 5.5 million dollars a day.

good achievement indeed. Lets see if they can keep up with the Joneses
 
ual777
Posts: 1641
Joined: Thu Aug 14, 2003 6:18 am

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 9:37 pm

jumbojet wrote:
tphuang wrote:
A really nice quarter again. . But overall, they are getting closer to DL. Pretty good achievement considering where they were last year.


Yes, a nice quarter.

Getting closer to Delta in what metric? United Pre-tax earnings 1.1 Billion. Delta 1.6 Billion. Difference is $500,000,000 or 5.5 million dollars a day.

good achievement indeed. Lets see if they can keep up with the Joneses


Driving higher revenue YoY and PRASM growth. UAL is indeed closing the gap.
It is always darkest before the sun comes up.
 
jumbojet
Posts: 2956
Joined: Mon Dec 29, 2003 3:01 am

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 9:44 pm

ual777 wrote:
jumbojet wrote:
tphuang wrote:
A really nice quarter again. . But overall, they are getting closer to DL. Pretty good achievement considering where they were last year.


Yes, a nice quarter.

Getting closer to Delta in what metric? United Pre-tax earnings 1.1 Billion. Delta 1.6 Billion. Difference is $500,000,000 or 5.5 million dollars a day.

good achievement indeed. Lets see if they can keep up with the Joneses


Driving higher revenue YoY and PRASM growth. UAL is indeed closing the gap.


but where it counts the most, the pocket book, five hundred million dollars is a lot of money.

At any rate, a very good job indeed.

What about contributions to profit sharing? What do the front line folks get out of this?
 
Prost
Posts: 2491
Joined: Wed Oct 03, 2012 6:23 pm

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 9:46 pm

Before we all start unzipping our pants and grabbing our rulers, a great quarter for UAL in no way diminishes DLs accomplishments. Congratulations to UAL and their employees, you’re working hard to make a better travel experience for your customers, well done.
 
PlanesNTrains
Posts: 9526
Joined: Tue Feb 01, 2005 4:19 pm

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 10:12 pm

jumbojet wrote:
ual777 wrote:
jumbojet wrote:

Yes, a nice quarter.

Getting closer to Delta in what metric? United Pre-tax earnings 1.1 Billion. Delta 1.6 Billion. Difference is $500,000,000 or 5.5 million dollars a day.

good achievement indeed. Lets see if they can keep up with the Joneses


Driving higher revenue YoY and PRASM growth. UAL is indeed closing the gap.


but where it counts the most, the pocket book, five hundred million dollars is a lot of money.

At any rate, a very good job indeed.

What about contributions to profit sharing? What do the front line folks get out of this?


I’m driving to a town 1600 miles away. I’m now 500 miles away. That’s closing the gap.
-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.
 
B757Forever
Posts: 825
Joined: Tue May 04, 2010 3:23 am

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 11:10 pm

Congrats the the hard working employees at United. It's good to see the US airline industry stabilizing and turning more consistent profits.
The Rolls Royce Dart. Noise = Shaft Horsepower.
 
flyguy84
Posts: 770
Joined: Thu Dec 22, 2016 7:26 pm

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 11:11 pm

jumbojet wrote:
ual777 wrote:
jumbojet wrote:

Yes, a nice quarter.

Getting closer to Delta in what metric? United Pre-tax earnings 1.1 Billion. Delta 1.6 Billion. Difference is $500,000,000 or 5.5 million dollars a day.

good achievement indeed. Lets see if they can keep up with the Joneses


Driving higher revenue YoY and PRASM growth. UAL is indeed closing the gap.


but where it counts the most, the pocket book, five hundred million dollars is a lot of money.

At any rate, a very good job indeed.

What about contributions to profit sharing? What do the front line folks get out of this?

A stable successful airline that has the ability to compete with the best of them. United is in it for the long game. They can’t erase all the errors and atrocities that SMI/J committed overnight, but they are well on their way.
SFO
 
jbs2886
Posts: 2182
Joined: Wed Apr 01, 2015 9:07 pm

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 11:15 pm

Impressive: PRASM increase (6.1%) was ABOVE the expected range(4-6%).
 
User avatar
tlecam
Posts: 1462
Joined: Tue Jul 23, 2013 1:38 pm

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 11:22 pm

Nice quarter. Very solid
BOS-LGA-JFK | A:319/20/21, 332/3, 346 || B:717, 735, 737, 738, 739, 752, 753, 762, 763, 764, 787, 772, 744 || MD80, MD90
 
N649DL
Posts: 614
Joined: Sat Aug 25, 2018 10:21 pm

Re: United post Q3 2018 earnings

Tue Oct 16, 2018 11:47 pm

Nice results. Interesting how they trashed IAH over the last few years about the O&G market in decline yet they are now praising it. Probably has to do with re-banking it entirely.
 
tphuang
Posts: 3520
Joined: Tue Mar 14, 2017 2:04 pm

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 12:12 am

IAH is probably doing really well with the rising fuel prices. As UA said, they have somewhat of a natural hedge against rising fuel prices.
 
SFOtoORD
Posts: 1145
Joined: Tue Jul 03, 2007 2:26 am

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 4:16 am

jumbojet wrote:
tphuang wrote:
A really nice quarter again. . But overall, they are getting closer to DL. Pretty good achievement considering where they were last year.


Yes, a nice quarter.

Getting closer to Delta in what metric? United Pre-tax earnings 1.1 Billion. Delta 1.6 Billion. Difference is $500,000,000 or 5.5 million dollars a day.

good achievement indeed. Lets see if they can keep up with the Joneses


How many dollars per minute? United should build a Delta countdown timer to help them realize their gap.
 
User avatar
ua900
Posts: 1530
Joined: Sun Feb 09, 2014 7:14 am

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 4:30 am

PlanesNTrains wrote:
jumbojet wrote:
ual777 wrote:

Driving higher revenue YoY and PRASM growth. UAL is indeed closing the gap.


but where it counts the most, the pocket book, five hundred million dollars is a lot of money.

At any rate, a very good job indeed.

What about contributions to profit sharing? What do the front line folks get out of this?


I’m driving to a town 1600 miles away. I’m now 500 miles away. That’s closing the gap.


Yup, that's how.

UA is doing a better job again, and it's good to recognize that. Hopefully us customers will also see continued improvement as during the early days of Polaris. It's certainly nice to see places like EWR and IAH become more hip and modern.
2018: AMS | ARN | CDG | DEN | DFW | EWR | FRA | GUM | HAM | HKG | HNL | IAH | LAX | MIA | MUC | ORD | RSW | SAL | SFO | SIN | TLV | TXL | VIE | ZRH
 
Cointrin330
Posts: 1323
Joined: Sat Jul 16, 2016 12:23 pm

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 3:52 pm

One word: Scott Kirby.
 
User avatar
lightsaber
Moderator
Posts: 18427
Joined: Wed Jan 19, 2005 10:55 pm

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 3:58 pm

N649DL wrote:
Nice results. Interesting how they trashed IAH over the last few years about the O&G market in decline yet they are now praising it. Probably has to do with re-banking it entirely.

HOU and to a lesser extent DEN do well with high oil. As others noted, natural hedging.

But some is good execution. It helps to have a good economy.

Lightsaber
IM messages to mods on warnings and bans will be ignored and nasty ones will result in a ban.
 
User avatar
adamblang
Posts: 1174
Joined: Sat Jul 19, 2008 5:47 pm

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 4:11 pm

Cointrin330 wrote:
One word: Scott Kirby.

That's actually two.
146 319 320 321 332 333 343 717 734 735 73G 738 739 744 752 753 763 764 772 773 789 AR1 AT4 CNA CR2 CR7 DC9 ER3 ERD ER4 E70 E75 E90
 
codc10
Posts: 2588
Joined: Sat Jul 08, 2000 7:18 am

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 6:57 pm

If anything, this quarter's result tells me there isn't much of a "secret sauce" at Delta. Of course, airline fundamentals are paramount, which start with a safe, reliable operation that delivers passengers to their destinations, on time, with their bags. United has made great strides in this department since 2015 or so and now is generally much more competitive with Delta than ever before.

The other part is revenue, and it is clear that the more resources (capacity, scheduling and revenue management) United pumps into growing the domestic network, the better the returns. United's constituent merger pieces came to the table strong internationally and weak in the domestic sector: United depleted its domestic capacity through bankruptcy (removing 737s, slashing DEN, massive downgauging) and Continental never had a comprehensive network to begin with. In the years post-merger, the airline cut back across the board most aggressively in the domestic sector, such that it wasn't able to take advantage of the fast and furious recovery where Delta, AA/US and WN were.

I am convinced now that the bulk of Delta's unit revenue advantage is significantly attributable to its massive short/medium-haul domestic network, especially ex-ATL, where it has frequency and gauge delivering outsize RPM performance, coupled with excellent hub connectivity (scheduling and geographic scope). It's no surprise that United's fortunes seemed to turn when it went full-bore back into the domestic network, DEN in particular, adding capacity, optimizing schedule and rolling out a new revenue management platform.

The plan is working... I just hope there's enough time in this current up-cycle (notwithstanding fuel, which has so far been mitigated) to recoup the lost ground.
 
739er
Posts: 59
Joined: Fri Jun 02, 2017 1:53 am

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 7:33 pm

codc10 wrote:
If anything, this quarter's result tells me there isn't much of a "secret sauce" at Delta. Of course, airline fundamentals are paramount, which start with a safe, reliable operation that delivers passengers to their destinations, on time, with their bags. United has made great strides in this department since 2015 or so and now is generally much more competitive with Delta than ever before.

The other part is revenue, and it is clear that the more resources (capacity, scheduling and revenue management) United pumps into growing the domestic network, the better the returns. United's constituent merger pieces came to the table strong internationally and weak in the domestic sector: United depleted its domestic capacity through bankruptcy (removing 737s, slashing DEN, massive downgauging) and Continental never had a comprehensive network to begin with. In the years post-merger, the airline cut back across the board most aggressively in the domestic sector, such that it wasn't able to take advantage of the fast and furious recovery where Delta, AA/US and WN were.

I am convinced now that the bulk of Delta's unit revenue advantage is significantly attributable to its massive short/medium-haul domestic network, especially ex-ATL, where it has frequency and gauge delivering outsize RPM performance, coupled with excellent hub connectivity (scheduling and geographic scope). It's no surprise that United's fortunes seemed to turn when it went full-bore back into the domestic network, DEN in particular, adding capacity, optimizing schedule and rolling out a new revenue management platform.

The plan is working... I just hope there's enough time in this current up-cycle (notwithstanding fuel, which has so far been mitigated) to recoup the lost ground.


Your remarks are spot on and honestly, better than most analyst’s assessment of UA. Thank you.
 
tphuang
Posts: 3520
Joined: Tue Mar 14, 2017 2:04 pm

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 8:35 pm

Honestly, I think given that ua doesn’t have atl or clt type of hub, it’s even more amazing that it has done this well. Even in its strongest hubs, it has to face either aa or wn competition. Den expansion seems to be a huge opportunity for them.
 
hnl-jack
Posts: 275
Joined: Wed Mar 14, 2001 10:34 pm

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 9:32 pm

Nice to see such positive results for UA. What bothers me is the constant comparison to DL and the remarks about the gap between them. DL is doing great and it's nice to see that UA is too. I don't think this is about one doing better than the other, it's simply about running a good operation and getting a solid bottom line return. DL is bigger than UA and it's return should be bigger. And, if that is the measurement that counts, AA's should be the biggest of them all.
 
Atlwarrior
Posts: 438
Joined: Sun Jul 29, 2012 3:42 am

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 10:15 pm

PlanesNTrains wrote:
jumbojet wrote:
ual777 wrote:

Driving higher revenue YoY and PRASM growth. UAL is indeed closing the gap.


but where it counts the most, the pocket book, five hundred million dollars is a lot of money.

At any rate, a very good job indeed.

What about contributions to profit sharing? What do the front line folks get out of this?


I’m driving to a town 1600 miles away. I’m now 500 miles away. That’s closing the gap.


Furthermore when it comes to debt reduction. United is no where near Delta.
 
jetero
Posts: 4457
Joined: Sat Oct 11, 2014 3:45 am

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 10:25 pm

Atlwarrior wrote:
PlanesNTrains wrote:
jumbojet wrote:

but where it counts the most, the pocket book, five hundred million dollars is a lot of money.

At any rate, a very good job indeed.

What about contributions to profit sharing? What do the front line folks get out of this?


I’m driving to a town 1600 miles away. I’m now 500 miles away. That’s closing the gap.


Furthermore when it comes to debt reduction. United is no where near Delta.


They better just call it a day and shut it down then, I guess.
 
winginit
Posts: 2614
Joined: Sat Feb 23, 2013 9:23 pm

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 10:29 pm

hnl-jack wrote:
NWhat bothers me is the constant comparison to DL and the remarks about the gap between them. DL is doing great and it's nice to see that UA is too. I don't think this is about one doing better than the other, it's simply about running a good operation and getting a solid bottom line return.


Comparison by posters or comparison by the airlines themselves? Comparisons and gap analysis are very much apart of the foundation of a capitalist society. Not sure why it should bother you if airlines themselves are doing it each and every day for the purpose of shareholder wealth creation.

If I have $100 and I'm looking to be a potential shareholder in a major US airline, the US3 are, and probably should, be fighting over my $100 by comparing themselves to one another. What's the problem with that?
 
jetmatt777
Posts: 3983
Joined: Sun Jun 26, 2005 2:16 am

Re: United post Q3 2018 earnings

Wed Oct 17, 2018 11:29 pm

winginit wrote:
hnl-jack wrote:
NWhat bothers me is the constant comparison to DL and the remarks about the gap between them. DL is doing great and it's nice to see that UA is too. I don't think this is about one doing better than the other, it's simply about running a good operation and getting a solid bottom line return.


Comparison by posters or comparison by the airlines themselves? Comparisons and gap analysis are very much apart of the foundation of a capitalist society. Not sure why it should bother you if airlines themselves are doing it each and every day for the purpose of shareholder wealth creation.

If I have $100 and I'm looking to be a potential shareholder in a major US airline, the US3 are, and probably should, be fighting over my $100 by comparing themselves to one another. What's the problem with that?


If you buy a share, you are buying something that has already been sold. The airlines, or any publicly traded company, don’t care if they win your investment, because the airline has already received money in the past for the shares you are buying, they see none of the money. They do care about the price of the stock as they have a duty to keep the price as high as possible for shareholders, but they aren’t selling any shares right now.
Lighten up while you still can, don't even try to understand, just find a place to make your stand and take it easy
 
dmstorm22
Posts: 567
Joined: Wed Jun 15, 2016 1:49 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 12:11 am

winginit wrote:
hnl-jack wrote:
NWhat bothers me is the constant comparison to DL and the remarks about the gap between them. DL is doing great and it's nice to see that UA is too. I don't think this is about one doing better than the other, it's simply about running a good operation and getting a solid bottom line return.


Comparison by posters or comparison by the airlines themselves? Comparisons and gap analysis are very much apart of the foundation of a capitalist society. Not sure why it should bother you if airlines themselves are doing it each and every day for the purpose of shareholder wealth creation.

If I have $100 and I'm looking to be a potential shareholder in a major US airline, the US3 are, and probably should, be fighting over my $100 by comparing themselves to one another. What's the problem with that?


Fair enough, and guess which airline has the better YTD return on their stock?

Not to say that is a perfect measurement either.

At the end of the day, UAL should feel very happy with their performance in 2018.
 
winginit
Posts: 2614
Joined: Sat Feb 23, 2013 9:23 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 1:09 am

jetmatt777 wrote:
winginit wrote:
hnl-jack wrote:
NWhat bothers me is the constant comparison to DL and the remarks about the gap between them. DL is doing great and it's nice to see that UA is too. I don't think this is about one doing better than the other, it's simply about running a good operation and getting a solid bottom line return.


Comparison by posters or comparison by the airlines themselves? Comparisons and gap analysis are very much apart of the foundation of a capitalist society. Not sure why it should bother you if airlines themselves are doing it each and every day for the purpose of shareholder wealth creation.

If I have $100 and I'm looking to be a potential shareholder in a major US airline, the US3 are, and probably should, be fighting over my $100 by comparing themselves to one another. What's the problem with that?


If you buy a share, you are buying something that has already been sold. The airlines, or any publicly traded company, don’t care if they win your investment, because the airline has already received money in the past for the shares you are buying, they see none of the money. They do care about the price of the stock as they have a duty to keep the price as high as possible for shareholders, but they aren’t selling any shares right now.


Obviously, but the way drive the price of the stock up is to generate (see: compete for) demand. Obviously.
 
N649DL
Posts: 614
Joined: Sat Aug 25, 2018 10:21 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 1:09 am

lightsaber wrote:
N649DL wrote:
Nice results. Interesting how they trashed IAH over the last few years about the O&G market in decline yet they are now praising it. Probably has to do with re-banking it entirely.

HOU and to a lesser extent DEN do well with high oil. As others noted, natural hedging.

But some is good execution. It helps to have a good economy.

Lightsaber


True. DEN is the "Wall Street of the West" for O&G. Everything above it Calgary, Edmonton, Dakotas report down to DEN-based companies.
 
mm320cap
Posts: 305
Joined: Wed Jul 14, 2004 12:35 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 1:41 am

winginit wrote:
hnl-jack wrote:
NWhat bothers me is the constant comparison to DL and the remarks about the gap between them. DL is doing great and it's nice to see that UA is too. I don't think this is about one doing better than the other, it's simply about running a good operation and getting a solid bottom line return.


Comparison by posters or comparison by the airlines themselves? Comparisons and gap analysis are very much apart of the foundation of a capitalist society. Not sure why it should bother you if airlines themselves are doing it each and every day for the purpose of shareholder wealth creation.

If I have $100 and I'm looking to be a potential shareholder in a major US airline, the US3 are, and probably should, be fighting over my $100 by comparing themselves to one another. What's the problem with that?


Stock price is a relative thing. Our stock has CRUSHED the rest of the industry in 2018, but our financial results are nowhere near Delta’s.

I agree with the poster who was frustrated by the constant comparison to Delta here on ANet. But I suppose I should just be grateful we can even entertain the conversation, because not long ago we were floundering so badly we were in our own league of poor results. There is no question that Delta is absolutely at the top of the industry. I’m just relieved to see us making good strides, growing and competing instead of the Smisek cut and run strategy in a lame attempt to boost the stock price short term.

Perhaps most impressive to me is that the industry as a whole seems to be able to make money even with fuel costs up (in UAL’s case) $2.5 BILLION this year. The industry as a whole has become much more healthy, and I think that’s a good thing for all of us in aviation.
 
MSPNWA
Posts: 3532
Joined: Thu Apr 23, 2009 2:48 am

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 2:27 am

Atlwarrior wrote:
Furthermore when it comes to debt reduction. United is no where near Delta.


"Debt reduction" =/= a low liability position.

You're right, they're not close. UA is solidly in the best position debt-wise. AA and DL - we won't know who's #2 until the long-term plays out.
 
winginit
Posts: 2614
Joined: Sat Feb 23, 2013 9:23 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 4:42 am

MSPNWA wrote:
Atlwarrior wrote:
Furthermore when it comes to debt reduction. United is no where near Delta.


"Debt reduction" =/= a low liability position.

You're right, they're not close. UA is solidly in the best position debt-wise. AA and DL - we won't know who's #2 until the long-term plays out.


You're putting words in Atlwarrior's mouth. Debt reduction is exactly that - the reduction of debt. A passing glance at balance sheets will show you that between the year ending 2014 and the year ending 2017 long-term debt levels have changed per the below:

DL: $8.2B to $6.3B
UA: $9.6B to $11.7B
AA: $16B to $22.5B

DL is the only carrier of the US3 who has reduced long-term debt, thus, "when it comes to debt reduction... United is no where near Delta" as was stated.

If you're going to try to pivot the conversation towards discussing which of the US3 is in the best position debt-wise, do that, but don't put words in someone else's mouth to try and fit your often-posted narrative.
 
msycajun
Posts: 1088
Joined: Thu Jun 16, 2016 4:13 am

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 5:15 am

UA discovered the hard way that cutting one's way to profitability is rarely a good idea, especially in a strong economy. B6, AS, and others should learn this lesson as well. If they can't bulk up their networks now, then what future is there when the economy takes a downturn? The probably is that a spotty approach won't be successful - some routes may lose money but contribute to scale which makes it possibly to earn loyalty.
 
PlanesNTrains
Posts: 9526
Joined: Tue Feb 01, 2005 4:19 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 5:20 am

Plenty of airlines and other companies have over-extended themselves in good times then crashed and burned when the economy tanked.

No guts, no glory.
But...
Over-extend now, underwater later
-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.
 
N649DL
Posts: 614
Joined: Sat Aug 25, 2018 10:21 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 8:12 am

mm320cap wrote:
winginit wrote:
hnl-jack wrote:
NWhat bothers me is the constant comparison to DL and the remarks about the gap between them. DL is doing great and it's nice to see that UA is too. I don't think this is about one doing better than the other, it's simply about running a good operation and getting a solid bottom line return.


Comparison by posters or comparison by the airlines themselves? Comparisons and gap analysis are very much apart of the foundation of a capitalist society. Not sure why it should bother you if airlines themselves are doing it each and every day for the purpose of shareholder wealth creation.

If I have $100 and I'm looking to be a potential shareholder in a major US airline, the US3 are, and probably should, be fighting over my $100 by comparing themselves to one another. What's the problem with that?


Stock price is a relative thing. Our stock has CRUSHED the rest of the industry in 2018, but our financial results are nowhere near Delta’s.

I agree with the poster who was frustrated by the constant comparison to Delta here on ANet. But I suppose I should just be grateful we can even entertain the conversation, because not long ago we were floundering so badly we were in our own league of poor results. There is no question that Delta is absolutely at the top of the industry. I’m just relieved to see us making good strides, growing and competing instead of the Smisek cut and run strategy in a lame attempt to boost the stock price short term.

Perhaps most impressive to me is that the industry as a whole seems to be able to make money even with fuel costs up (in UAL’s case) $2.5 BILLION this year. The industry as a whole has become much more healthy, and I think that’s a good thing for all of us in aviation.


As someone who honestly has sworn off UA since the merger, I'll give you that. They really have made up for serious PR catastrophes and lost ground from over a year ago. That said, they aren't really in striking distance of DL either. As for AA, I really can't tell as there are some serious concerns about long term debt but they have extremely captive markets as well.
 
User avatar
intotheair
Posts: 1768
Joined: Sun Aug 31, 2014 12:49 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 9:04 am

PlanesNTrains wrote:
Plenty of airlines and other companies have over-extended themselves in good times then crashed and burned when the economy tanked.

No guts, no glory.
But...
Over-extend now, underwater later


According to an interview I saw with Oscar on CNBC, UA cut 1,200 flights since the merger started and has added 200 just in the last year and a half. As long as PRASM and load factors remain high with more growth, then it shouldn't be a problem. If the market ever really starts looking ugly again like it did in 2008, then UA is still in a good position to park a lot of paid off planes and cut capacity.

Also interesting in this interview is Oscar says 2019 and 2020 will be time to focus even more on the passenger experience. He even says wifi will someday be free on UA.

https://www.cnbc.com/video/2018/10/17/u ... tlook.html
300 319 320 321 332 333 345 346 380 717 733 734 735 73G 738 739 744 752 753 762 763 772 77W 788 789 CR2 CR7 CR9 CRK Q400 E175 DC10 MD82 MD90
AA AF AS AY AZ B6 BA BR DL F9 FI GA HA KF LH MI QX SK SN SQ UA US VY WN
 
Fargo
Posts: 810
Joined: Fri Sep 21, 2018 3:00 am

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 10:30 am

Good to see UA turning to corner, but they still have a ways to go. Next up besides improving customer service is to get a 100 seat aircraft and drastically reduce their 50 seaters (particularly at ORD and DEN).
 
PlanesNTrains
Posts: 9526
Joined: Tue Feb 01, 2005 4:19 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 2:11 pm

intotheair wrote:
PlanesNTrains wrote:
Plenty of airlines and other companies have over-extended themselves in good times then crashed and burned when the economy tanked.

No guts, no glory.
But...
Over-extend now, underwater later


According to an interview I saw with Oscar on CNBC, UA cut 1,200 flights since the merger started and has added 200 just in the last year and a half. As long as PRASM and load factors remain high with more growth, then it shouldn't be a problem. If the market ever really starts looking ugly again like it did in 2008, then UA is still in a good position to park a lot of paid off planes and cut capacity.

Also interesting in this interview is Oscar says 2019 and 2020 will be time to focus even more on the passenger experience. He even says wifi will someday be free on UA.

https://www.cnbc.com/video/2018/10/17/u ... tlook.html


True. I was more speaking to the thought that B6 and AS should follow their lead.
-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.
 
gwrudolph
Posts: 398
Joined: Sat Sep 13, 2008 3:46 pm

Re: United post Q3 2018 earnings

Thu Oct 18, 2018 7:39 pm

codc10 wrote:
If anything, this quarter's result tells me there isn't much of a "secret sauce" at Delta. Of course, airline fundamentals are paramount, which start with a safe, reliable operation that delivers passengers to their destinations, on time, with their bags. United has made great strides in this department since 2015 or so and now is generally much more competitive with Delta than ever before.

The other part is revenue, and it is clear that the more resources (capacity, scheduling and revenue management) United pumps into growing the domestic network, the better the returns. United's constituent merger pieces came to the table strong internationally and weak in the domestic sector: United depleted its domestic capacity through bankruptcy (removing 737s, slashing DEN, massive downgauging) and Continental never had a comprehensive network to begin with. In the years post-merger, the airline cut back across the board most aggressively in the domestic sector, such that it wasn't able to take advantage of the fast and furious recovery where Delta, AA/US and WN were.

I am convinced now that the bulk of Delta's unit revenue advantage is significantly attributable to its massive short/medium-haul domestic network, especially ex-ATL, where it has frequency and gauge delivering outsize RPM performance, coupled with excellent hub connectivity (scheduling and geographic scope). It's no surprise that United's fortunes seemed to turn when it went full-bore back into the domestic network, DEN in particular, adding capacity, optimizing schedule and rolling out a new revenue management platform.

The plan is working... I just hope there's enough time in this current up-cycle (notwithstanding fuel, which has so far been mitigated) to recoup the lost ground.


Well stated!
 
flyb
Posts: 555
Joined: Tue Aug 15, 2006 7:39 am

Re: United post Q3 2018 earnings

Sun Nov 04, 2018 1:49 pm

N649DL wrote:
lightsaber wrote:
N649DL wrote:
Nice results. Interesting how they trashed IAH over the last few years about the O&G market in decline yet they are now praising it. Probably has to do with re-banking it entirely.

HOU and to a lesser extent DEN do well with high oil. As others noted, natural hedging.

But some is good execution. It helps to have a good economy.

Lightsaber


True. DEN is the "Wall Street of the West" for O&G. Everything above it Calgary, Edmonton, Dakotas report down to DEN-based companies.


Not the case for Edmonton or Calgary. Canadian companies like Encana that operate in Denver or Gunnison areas ultimately report in to Calgary. Us based companies we all fly to Houston not Denver for reporting.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos