Scarebus34
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United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 9:06 pm

United announced 2Q earnings with profit up 50% year over year. Of interesting note, they’ve signed an agreement for 19 used 737-700s.

Image

https://www.google.com/amp/s/www.cnbc.c ... mates.html

https://hub.united.com/united-airlines- ... 11870.html
 
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STT757
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 9:25 pm

Awesome job! Those 19 737-700s are probably coming from CZ, where many of their used A319s have been sourced. Still holding out hope for a A220 or ERJ195E2 order.


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slcdeltarumd11
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 9:33 pm

It's important to mention:
The 737 MAX groundings forced United to cut its 2019 capacity growth target for a second time this year. It now expects capacity to grow between 3% and 4%, versus an original forecast of 4%-6% growth.

United will be affected by the MAX no way to hide that. More hurt the longer this goes on for. The pain has been minimal so far because United had so few at the beginning but as deliveries were suppose to arrive this will get worse.
 
airlineguy1234
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 9:34 pm

I think it goes to show commercial aviation in the United States is the most profitable it has been since the deregulation. Airlines are more rational now then they have been in the past. The industry is looking more like a “normal industry”. I would think 10 years ago the 737MAX issues would have caused airlines to report losses.
 
Ishrion
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 9:39 pm

STT757 wrote:
Awesome job! Those 19 737-700s are probably coming from CZ, where many of their used A319s have been sourced. Still holding out hope for a A220 or ERJ195E2 order.


Sent from my iPhone using Tapatalk Pro


Isn't CZ affected by the MAX groundings as well? They have 24 MAXs and 26 737-700s... seems a bit off to transfer aircraft when they probably need them more than ever.
 
Cubsrule
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 9:42 pm

It'll be interesting to see what they do with the interiors of the new 73Gs. Are there any current 73Gs with refurbished interiors? I flew a 73G (N23708 IINM) last month and it was a blast from 2000. My 9-year-old couldn't figure out how to work the non-touch screen PTV.
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Boof02671
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 9:45 pm

STT757 wrote:
Awesome job! Those 19 737-700s are probably coming from CZ, where many of their used A319s have been sourced. Still holding out hope for a A220 or ERJ195E2 order.


Sent from my iPhone using Tapatalk Pro

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seabosdca
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 9:55 pm

Interesting to realize that under its original order UA would now be operating well more than this number of new 737-700s... but would have paid a lot more for them.

In any event, a nice quarter for an organization under the gun from the missing MAXes.

I expect the difference in fuel price has a lot to do with state-level fuel taxes.
 
LAXdude1023
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 9:55 pm

This thread is about UA. Compare if you want but start a new thread.
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seat38a
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 10:21 pm

Anyone else notice the handicap icon for CASM?
 
alasizon
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 10:47 pm

seat38a wrote:
Anyone else notice the handicap icon for CASM?


I'll agree that is a weird icon choice.

The biggest piece I see here is the nice increase in PRASM, while I'm sure part of that is due to Easter & start of summer both falling in Q2 this year shifting some revenue out of Q1; UA still put a good healthy increase on the board.
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VC10er
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 11:00 pm

I think that a thread of the 3 majors would be very interesting to read ESPECIALLY if it had past growth beyond “this time last year”

It was sort of a downer to read JumboJet’s first reply because it was SO TRANSPARENT! And Delta was never really a “Jumbo Jet” airline ever. (Yes I’m aware of the first few they got, and the in-out nature of Northwest 747s)

I would like to see a fair assessment of the 3 majors, but not just quarterly earnings but trendlines too. Delta is on top, that’s far from new news, United getting its poop together is. United is on a journey and it would be more interesting to see what impact certain things are having on each.
Not just “today over this time last year” but actual trend lines.
It will become much more interesting as United finishes all o its refurbishing, taking deliveries of many new WBs, and when the MAX’s do finally enter service in large numbers!

But from a glass half full standpoint, seems like UA is not the perpetual loser, and is finding its place and voice. CONGRATULATIONS TO THOSE NEVER SURLY UA EMPLOYEES!
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MIflyer12
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 11:16 pm

VC10er wrote:
I would like to see a fair assessment of the 3 majors, but not just quarterly earnings but trendlines too.


AA, DL and UA are all publicly-traded firms that issue quarterly income statements. They have operational data in the public forum, too, with load factors, RPMs, passenger boardings, and typically mainline completion factors, among other data. The work awaits you. Here's a shortcut if you're satisfied with annual comparisons instead of quarterly: https://www.marketwatch.com/investing/s ... financials

It's certainly thin-skinned to demand that a comparison of UA vs. DL not exist in this thread. Some analyst on the call tomorrow really ought to ask why DL made $1.1B more in revenue and $480 million more in Net Income while flying 1.5 Billion less Available Seat Miles last quarter. It points out the arrogance and folly of just comparing UA to historical UA (United Airlines Achieves Highest Second-Quarter Pre-Tax Income In Company History).
 
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 11:21 pm

MIflyer12 wrote:
VC10er wrote:
Some analyst on the call tomorrow really ought to ask why DL made $1.1B more in revenue and $480 million more in Net Income while flying 1.5 Billion less Available Seat Miles last quarter. It points out the arrogance and folly of just comparing UA to historical UA (United Airlines Achieves Highest Second-Quarter Pre-Tax Income In Company History).


It's this statement and the facts contained that are shocking. Comparing financials within the same industry is apples to apples. Some airlines are larger and some are smaller but looking at such a large revenue and net income gap in favor of DL while flying so many fewer available seat miles is stunning.
 
MSPNWA
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 11:26 pm

A lot of momentum going for UA. Revenue was strong across all regions, and costs were kept in check. And that's with about 2% of their prime fleet grounded. They're in the mix for the best-run U.S. airline right now. Be interesting to see what detail comes out tomorrow regarding the MAX financial impact.
 
jetmatt777
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 11:37 pm

SonomaFlyer wrote:
MIflyer12 wrote:
VC10er wrote:
Some analyst on the call tomorrow really ought to ask why DL made $1.1B more in revenue and $480 million more in Net Income while flying 1.5 Billion less Available Seat Miles last quarter. It points out the arrogance and folly of just comparing UA to historical UA (United Airlines Achieves Highest Second-Quarter Pre-Tax Income In Company History).


It's this statement and the facts contained that are shocking. Comparing financials within the same industry is apples to apples. Some airlines are larger and some are smaller but looking at such a large revenue and net income gap in favor of DL while flying so many fewer available seat miles is stunning.


It’s rather simple.

Delta has a monopoly at most of its major hubs which accounts for the revenue difference. United has hubs which are geographically distant to many cities and also does not enjoy a monopoly in those cities. United simply has to fly passengers further and compete on price more.
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IADFCO
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Re: United beats on 2Q earnings, adding used 737

Tue Jul 16, 2019 11:45 pm

https://www.chicagotribune.com/business ... story.html

"United is still working on the specifics of its plan to make the case for the 737 Max. Munoz said it would include educating customers and employees about why United feels it’s safe to resume flights, making it clear to customers when they’re flying on a Max and working with travelers who remain nervous about the aircraft."

“If people need any kind of adjustments, we will absolutely rebook them,” he said.

If he sticks to this plan (from a couple of months ago) it will be very good PR, and presumably more earnings going forward.
 
Max Q
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 12:39 am

Good numbers

Surprised by how little (relatively) cash on hand is reported with 12 Billion in debt


I’ve never understood why they don’t pay that down instead of repurchasing stock
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PIEAvantiP180
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 12:50 am

United operating revenue for Q2 2019 was 11.4 billion, which DL still beat by 1.1 billion which is huge. There is no getting around it DL made a billion dollars more than UA. In my opinion that is to be expected.
United's net income was much closer to DL, UA in Q2 net income was 1.1 billion as you correctly pointed out just five hundred thousand more dollars than UA.
United's numbers especially the net income (if I'm not mistaken) has never been this close to DL's net income.
I get that you are excited that DL wins again and congratulations to DL but UA's performance in the face of having 14 plus aircraft grounded (keep in mind we were slated to take delivery of several MAX9s in Q2 so that 14 is probably closer to 18-20 frames) is still an excellent performance. In many cases UA was forced to use widebody aircraft to replace MAX flying especially during the early stages of the grounding in Q2, as the grounding drag on deeper into Q2 UA has been forced to cancel thousands of flights. Yet UA sill managed to pull our net income to within five hundred thousand dollars of DL's net income.

While DL is still the clear winner here I don't see much to celebrate because you have to wonder what UA's Q2 results would/could have been if we still had the MAX9s flying. For the net income to be within five hundred thousand dollars of DL's net income after all groundings, aircraft substitutions and subsequent cancellations I think you should be looking at DL and asking why isn't DL's net income result better? Operating revenue is one thing net income is whats left over, I'm quite honestly shocked UA's net income this close to DL's.[/quote]

Just a minor correction in your numbers its 500mil, not thousand. Also the way i read it DL net income was 1.443B and UA 1.05B. So less than 400mil separate the two.

As for the rest. I'm in the camp of wanting to see the numbers between the airlines as they are posted and if thats the first response in the new topic so be it, will be waiting to see the numbers between UA, DL and AA as soon as AA is done releasing their q2 numbers. Been reading these message boards for over a decade and half and could not care less who is posting what and what their motives are because 99.99% of the time i dont read the posters name just what they posted, its so much easier that way, as long as its being posted and discussed, after all its what most of us come here for is to have an open and spirited discussion, learn something and follow the industry that we love. If you dont like the person then skip the post and move on, block the user if you must. I dont have an allegiance to any airline, as a travel agent as long as they sell a seat that my client wants is as far as my personal involvement will go towards that particular company. Back to topic. Great numbers UA, it seems even with MAX issues they are managing the situation and minimizing the damage so far. Their number keep improving and thats all you can ask for. UA seems to be slowly but surely moving in the right direction.
 
LHUSA
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 3:18 pm

The market is clearly happy - stock is at $94.2, by far the highest this year and, if i'm correct, second highest in the last 5 years. Wonder if it will beat November's high of $96.70?
 
apodino
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 4:13 pm

Key Takeaways from the Call.

1. United's most profitable region is surprisingly Latin American, which is a region United has never been thought of as strong in. Given AA's strength in that region, that could bode well for AA, but United seems to be earning business here that AA would want.

2. Asia remains solid despite the India route loss and the trade disputes with China. An analyst asked about NRT since DL reported weakening demand in the Tokyo market, but United is not seeing any signs of this. (Of note, UA has NK as an alliance partner, and DL does not have an alliance partner hub in Tokyo)

3. Jamie Baker, always one to cause trouble on earnings calls, questioned UAs capacity increase forecast despite Wall Street indications of a slowing economy. United's response is that bookings are very solid and they need the extra capacity to keep up with demand.

4. While he didn't state this directly, Oscar Munoz all but said that when he took over United the company was a mess and the company has transformed significantly and four years later is in a much different place and culture is much better. This actually goes to the revenue difference, which was not asked about at all from what I could see. One of the issues United has had with revenue on the domestic side is that under Glenn Tilton and then Jeff Smisek, the united domestic network was a few narrowbodies between the big cities, but was very RJ heavy. You cant make much revenue with RJs. With a small domestic fleet when Munoz took over, domestic revenue was naturally down. The domestic fleet is starting to be rebuilt, but Delta had a huge head start. AA also has a huge advantage over UA here as well.

All in all this was a great quarter for United, and Munoz and Kirby are doing a great job. You wonder if Doug Parker and the AA BOD are kicking themselves for letting Kirby get away.
 
smflyer
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 4:35 pm

Max Q wrote:
Good numbers

Surprised by how little (relatively) cash on hand is reported with 12 Billion in debt


I’ve never understood why they don’t pay that down instead of repurchasing stock


Most of that debt was acquired or refinanced into when interest rates were rock bottom a few years ago. Theres no point in paying back low interest loans when you can more effectively use your earnings on stock buybacks. If you're getting a higher return on buybacks than the interest you're paying, then there is absolutely no reason to be paying those loans faster than needed.
 
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 4:41 pm

alasizon wrote:
seat38a wrote:
Anyone else notice the handicap icon for CASM?

I'll agree that is a weird icon choice.

Graphic was produced by AlphaStreet, not United.
 
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tlecam
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 4:51 pm

Very nice quarter by United.

I don't mind the comparisons to DL (and inevitably, in the AA thread, to all three), but the real news for the street is how UAL is doing against their plan. THey're either achieving or exceeding their plan, and the market is responding positively.
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:01 pm

jetmatt777 wrote:
SonomaFlyer wrote:
MIflyer12 wrote:


It's this statement and the facts contained that are shocking. Comparing financials within the same industry is apples to apples. Some airlines are larger and some are smaller but looking at such a large revenue and net income gap in favor of DL while flying so many fewer available seat miles is stunning.


It’s rather simple.

Delta has a monopoly at most of its major hubs which accounts for the revenue difference. United has hubs which are geographically distant to many cities and also does not enjoy a monopoly in those cities. United simply has to fly passengers further and compete on price more.


THIS!!!

DL has hubs where they face almost no competition. UA's hubs are in bigger cities but the competition is much more stiff.
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mcg
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:05 pm

When will the 737-700's enter service? Thanks in advance.
 
FSDan
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:11 pm

apodino wrote:
United's most profitable region is surprisingly Latin American, which is a region United has never been thought of as strong in.


I don't know if I fully agree with that. UA (and CO before them) has had a powerhouse Latin America hub in IAH for decades. The only comparably strong hubs to Latin America are DFW and MIA, and to a slightly lesser extent ATL.

apodino wrote:
2. Asia remains solid despite the India route loss and the trade disputes with China. An analyst asked about NRT since DL reported weakening demand in the Tokyo market, but United is not seeing any signs of this. (Of note, UA has NK as an alliance partner, and DL does not have an alliance partner hub in Tokyo)


I know you meant NH... NK (Spirit Airlines) would be a real change in Asia alliance strategy for UA ;)
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global2
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:11 pm

I was happy to hear on the news this morning that UA's performance beat expectations, it seems like they're really starting to build some momentum here. DL of course has been doing well for a while now. Now let's see what AA has to say...
 
codc10
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:18 pm

apodino wrote:
1. United's most profitable region is surprisingly Latin American, which is a region United has never been thought of as strong in. Given AA's strength in that region, that could bode well for AA, but United seems to be earning business here that AA would want.


Did he say that Latin was the most profitable, or that it was the best performer yoy (something like 9.1% PRASM growth)? I was half-listening to the call so I honestly can't remember, and the transcript isn't up yet. Overall, a strong performance that is sadly tempered a bit by the MAX issues.

With United over the last few years, it seems like there's always something preventing it from fully hitting its stride!
 
B7378E9
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:22 pm

STT757 wrote:
Awesome job! Those 19 737-700s are probably coming from CZ, where many of their used A319s have been sourced. Still holding out hope for a A220 or ERJ195E2 order.


Sent from my iPhone using Tapatalk Pro

Don't know about other 17 737-700s but 2 737-700s are coming from Regent Airways of Bangladesh.One of them with registration S2-AHC has left the fleet in early April and few weeks ago it flew to TX(most probably) for paint job
 
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LuxuryTravelled
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:28 pm

United are also getting 319’s from easyJet this winter.
 
Aptivaboy
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:30 pm

United is very smart to get the 737-700s that are a good fit. No one on Earth knows when the MAX mess will end. It is a good insurance plan on a plane that has proven some good routes for united. High and or thin that plane can make alot of routes work with good range and takeoff performance. Higher seat costs but versatile and i bet they are getting a good price.


:checkmark: :checkmark: :checkmark: :checkmark:

Based upon what we've heard and how various airlines are blocking out their schedules, its unlikely the MAX will be flying before Thanksgiving. Personally, I'm thinking New Years, but that's just my own unscientific opinion.

Regarding these 737-700s, are they or will they be ETOPs certified? Or, are they just going to remain in the continental United States? Too early to know? Just curious if they'll be more or less stock, or if United will deploy them on routes that the MAX might have been used for, like Hawaii and Caribbean routes. Given their lower capacity, I'm guessing not but I thought I'd ask.

Thanks, and have super day, everyone.
 
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Polot
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:36 pm

Aptivaboy wrote:
United is very smart to get the 737-700s that are a good fit. No one on Earth knows when the MAX mess will end. It is a good insurance plan on a plane that has proven some good routes for united. High and or thin that plane can make alot of routes work with good range and takeoff performance. Higher seat costs but versatile and i bet they are getting a good price.


:checkmark: :checkmark: :checkmark: :checkmark:

Based upon what we've heard and how various airlines are blocking out their schedules, its unlikely the MAX will be flying before Thanksgiving. Personally, I'm thinking New Years, but that's just my own unscientific opinion.

Regarding these 737-700s, are they or will they be ETOPs certified? Or, are they just going to remain in the continental United States? Too early to know? Just curious if they'll be more or less stock, or if United will deploy them on routes that the MAX might have been used for, like Hawaii and Caribbean routes. Given their lower capacity, I'm guessing not but I thought I'd ask.

Thanks, and have super day, everyone.

The purchase is likely unrelated to the MAX grounding, ie UA would have still bought them even if no grounding. UA has been expanding their small capacity mainline fleet with used aircraft, although only with used A319s until now (WN was driving up used 73G prices too much).
 
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intotheair
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 5:50 pm

Polot wrote:
The purchase is likely unrelated to the MAX grounding, ie UA would have still bought them even if no grounding. UA has been expanding their small capacity mainline fleet with used aircraft, although only with used A319s until now (WN was driving up used 73G prices too much).


Yes. Scott Kirby said this toward the end of the call. An acquisition like that requires some lead time, and he said that they were already working on it before the MAX grounding.

He was also asked about the A321XLR and how much longer UA can afford to wait on making a decision about 757 and 767 replacements. He gave a somewhat reserved answer that UA has "some time" to decide, but that UA, like other airlines, is eager to see what the NMA will be.
300 319 320 321 332 333 345 346 717 733 734 735 73G 738 739 744 752 753 762 763 772 77W 788 789 CR2 CR7 CR9 Q400 E175 DC10 MD82 MD90
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UPlog
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 6:06 pm

apodino wrote:

1. United's most profitable region is surprisingly Latin American, which is a region United has never been thought of as strong in. Given AA's strength in that region, that could bode well for AA, but United seems to be earning business here that AA would want.


Dont overlook fact that Latin America was once CO’s largest operation outside the U.S.

There is still much there today and one of the strengths behind the Houston hub.
 
LAXdude1023
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 6:14 pm

UPlog wrote:
apodino wrote:

1. United's most profitable region is surprisingly Latin American, which is a region United has never been thought of as strong in. Given AA's strength in that region, that could bode well for AA, but United seems to be earning business here that AA would want.


Dont overlook fact that Latin America was once CO’s largest operation outside the U.S.

There is still much there today and one of the strengths behind the Houston hub.


Its the 2nd biggest Latin America hub in the US behind MIA. I doubt it would be the case if it wasnt a very profitable region for them.

Going through the numbers, UA wasnt profitable to Latin America in 2018. However they are profitable so far in 2019 and were for many years before 2018. This is one area where UA actually out preforms DL. Both are way behind AA though (but they have MIA so all bets are off).
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N649DL
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 6:16 pm

UA is in the same league as DL and AA so I'm not sure why one *wouldn't* compare them to DL. I'd actually be more curious to see how UA compares to AA this quarter instead.

Cubsrule wrote:
It'll be interesting to see what they do with the interiors of the new 73Gs. Are there any current 73Gs with refurbished interiors? I flew a 73G (N23708 IINM) last month and it was a blast from 2000. My 9-year-old couldn't figure out how to work the non-touch screen PTV.


The 737s are ex-CO and have a wide range of interiors. Some look like they're stuck in the late 1990s with the boxy DTV setup in the seats, some have newer seats with the 787 style overhead bins and newer DTV screens, others have slimline seats with 787 overhead bins and only have streaming available. From a consistency standpoint, probably the weakest to fly on domestically since there are so many versions and one with DTV can easily be swapped to one with only streaming available.
 
LawAndOrder
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 6:22 pm

I think we are overestimating what the max groundings caused. With less capacity airlines can actually charge more. I think it was in 2014 a couple of airlines had pilot hour issues and had approx 10-20 planes grounded/ not operating and did just fine without the public even really knowing.

It actually allows airlines to cancel under performing flights/ routes ala AA at JFK. It’s good to see UA doing better but every other airline is brought up in delta threads, why would UA earning be any different? I think there are more DL haters than DL fanboys
 
airzona11
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 6:22 pm

Polot wrote:
Aptivaboy wrote:
United is very smart to get the 737-700s that are a good fit. No one on Earth knows when the MAX mess will end. It is a good insurance plan on a plane that has proven some good routes for united. High and or thin that plane can make alot of routes work with good range and takeoff performance. Higher seat costs but versatile and i bet they are getting a good price.


:checkmark: :checkmark: :checkmark: :checkmark:

Based upon what we've heard and how various airlines are blocking out their schedules, its unlikely the MAX will be flying before Thanksgiving. Personally, I'm thinking New Years, but that's just my own unscientific opinion.

Regarding these 737-700s, are they or will they be ETOPs certified? Or, are they just going to remain in the continental United States? Too early to know? Just curious if they'll be more or less stock, or if United will deploy them on routes that the MAX might have been used for, like Hawaii and Caribbean routes. Given their lower capacity, I'm guessing not but I thought I'd ask.

Thanks, and have super day, everyone.

The purchase is likely unrelated to the MAX grounding, ie UA would have still bought them even if no grounding. UA has been expanding their small capacity mainline fleet with used aircraft, although only with used A319s until now (WN was driving up used 73G prices too much).


I tend to agree. I think UA has done a great job filling the gaps adding used A319s/320s/737s. Lots more 73G/8s 319s/20s will come on the market once the MAX resumes delivery and Airbus keeps pumping on the NEOs. Lots of opportunity for UA (and DL/AA/WN) who have the in house scale and expertise to integrate the fleets.
 
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seabosdca
Posts: 6462
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 6:30 pm

Aptivaboy wrote:
Regarding these 737-700s, are they or will they be ETOPs certified? Or, are they just going to remain in the continental United States? Too early to know? Just curious if they'll be more or less stock, or if United will deploy them on routes that the MAX might have been used for, like Hawaii and Caribbean routes. Given their lower capacity, I'm guessing not but I thought I'd ask.


Virtually none of the remaining feedstock that UA might be drawing from is ETOPS certified (or the foreign equivalent), and I doubt it would make economic sense to certify more -700s. UA already has many more existing 737NGs certified for ETOPS than it could possibly need for actual ETOPS service.
 
n471wn
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 8:59 pm

On another UA thread someone who said they had “inside sources” said the 737-700 aircraft were coming from WN which never made any sense to me.
 
alasizon
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 9:12 pm

n471wn wrote:
On another UA thread someone who said they had “inside sources” said the 737-700 aircraft were coming from WN which never made any sense to me.


I doubt its the case. However, it could make slight sense. WN was supposed to start retiring some of the older 73Gs next year (pending MAX deliveries of course). However, I doubt UA would announce this when WN would likely be dragging their feet.
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czek6
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 10:58 pm

Good news for United. It makes me wonder when that will start to pay a stock dividend.

Also, how are their labor contracts? Will we see more demands for revenue sharing?
 
HP69
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Re: United beats on 2Q earnings, adding used 737

Wed Jul 17, 2019 11:59 pm

UA seems to have really figured it out in the last 18 months or so. Good for them.
 
n471wn
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Re: United beats on 2Q earnings, adding used 737

Thu Jul 18, 2019 12:19 am

HP69 wrote:
UA seems to have really figured it out in the last 18 months or so. Good for them.


Agree with you that they are kicking butts while my favorite airline (WN) seems to be floundering by apparently having no Plan B on the Max debacle.
 
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PacoMartin
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Re: United beats on 2Q earnings, adding used 737

Thu Jul 18, 2019 1:55 am

apodino wrote:
1. United's most profitable region is surprisingly Latin American, which is a region United has never been thought of as strong in. Given AA's strength in that region, that could bode well for AA, but United seems to be earning business here that AA would want.


Latin American had by far the best Year over Year growth compared to Atlantic, Pacific, and Domestic.
But It is not the most profitable region.


Net Income 2nd quarter 2018 and 2017 (after regional name) from BTS
$522,788 DOMESTIC $779,860
$240,469 ATLANTIC $160,465
-$36,098 PACIFIC -$121,313
-$43,025 LATIN AMERICA -$832

Net income by geographic region is not reported in the quarterly United report, although it is in the BTS statistic.


Was pretty amazed that domestic YoY statistics went up even higher than load factor without the 14 MAXs.

Domestic YoY
Passenger load factor (points) 0.40
Passengers 3.10%
RPMs (traffic) 4.40%
ASMs (capacity) 4.00%
 
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seabosdca
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Re: United beats on 2Q earnings, adding used 737

Thu Jul 18, 2019 5:05 am

PacoMartin wrote:
Was pretty amazed that domestic YoY statistics went up even higher than load factor without the 14 MAXs.

Domestic YoY
Passenger load factor (points) 0.40
Passengers 3.10%
RPMs (traffic) 4.40%
ASMs (capacity) 4.00%


Pedal to the metal utilization. That works for a little while, but it's not sustainable over years. UA really, really, really needs the MAX to be certified again ASAP.
 
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CALTECH
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Re: United beats on 2Q earnings, adding used 737

Thu Jul 18, 2019 2:41 pm

seabosdca wrote:
Aptivaboy wrote:
Regarding these 737-700s, are they or will they be ETOPs certified? Or, are they just going to remain in the continental United States? Too early to know? Just curious if they'll be more or less stock, or if United will deploy them on routes that the MAX might have been used for, like Hawaii and Caribbean routes. Given their lower capacity, I'm guessing not but I thought I'd ask.


Virtually none of the remaining feedstock that UA might be drawing from is ETOPS certified (or the foreign equivalent), and I doubt it would make economic sense to certify more -700s. UA already has many more existing 737NGs certified for ETOPS than it could possibly need for actual ETOPS service.


All of United's 737s are ETOPS, NGs and MAXs. The 737 additions will also be ETOPS. All Airbuses are not ETOPS.

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Polot
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Re: United beats on 2Q earnings, adding used 737

Thu Jul 18, 2019 2:47 pm

PacoMartin wrote:
apodino wrote:
1. United's most profitable region is surprisingly Latin American, which is a region United has never been thought of as strong in. Given AA's strength in that region, that could bode well for AA, but United seems to be earning business here that AA would want.


Latin American had by far the best Year over Year growth compared to Atlantic, Pacific, and Domestic.
But It is not the most profitable region.


Net Income 2nd quarter 2018 and 2017 (after regional name) from BTS
$522,788 DOMESTIC $779,860
$240,469 ATLANTIC $160,465
-$36,098 PACIFIC -$121,313
-$43,025 LATIN AMERICA -$832

Net income by geographic region is not reported in the quarterly United report, although it is in the BTS statistic.


Was pretty amazed that domestic YoY statistics went up even higher than load factor without the 14 MAXs.

Domestic YoY
Passenger load factor (points) 0.40
Passengers 3.10%
RPMs (traffic) 4.40%
ASMs (capacity) 4.00%

You have to be careful with BTS reports in terms of geographical income. I fly MCI-SFO-HND. How is the revenue from my ticket allotted between domestic (MCI-SFO) and pacific (SFO-HND)? There is no industry or government standard, it is all up to the reporting airline.
 
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seabosdca
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Re: United beats on 2Q earnings, adding used 737

Thu Jul 18, 2019 6:11 pm

CALTECH wrote:
All of United's 737s are ETOPS, NGs and MAXs. The 737 additions will also be ETOPS. All Airbuses are not ETOPS.


Interesting. If they aren't already ETOPS -- and I don't know where you'd get a bunch of ETOPS 73Gs at the moment -- I can't imagine that there's a good business case for getting the additional 73Gs ETOPS certified.

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