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panamair
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Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 11:22 am

Here are some of the key financial performance metrics for Q3 2019 for six US carriers (AA, AS, B6, DL, UA, and WN).

Q3 2019

Operating Revenues - Total and with Pax Revenues broken out:

DL: 12.56B (11.41B pax rev)
AA: 11.91B (11.0B pax rev)
UA: 11.38B (10.48B pax rev)
WN: 5.64B (5.23B pax rev)
AS: 2.39B (2.21B pax rev)
B6: 2.09B (2.01B pax rev)


Operating Expenses - Total and with Salaries/Benefits broken out:

AA: 11.10B (3.22B salaries + profit sharing)
DL: 10.49B (3.40B salaries ($2.88b) and profit sharing ($517m))
UA: 9.91B (3.06B salaries and profit sharing)
WN: 4.82B (2.0B salaries and benefits)
AS: 1.97B (654m salaries + variable pay)
B6: 1.84B (580m salaries and benefits)


Operating Profit GAAP and Margin:

AS: 17.7%; 422m
DL: 16.5%; 2,071m
WN: 14.5%; 819m
UA: 12.9%; 1,473m
B6: 11.8%; 247m
AA: 6.8%; 808m

Operating Profit excl specials and Margin:

AS: 17.9%; 427m
DL: 16.3%; 2,036m
WN: 14.5%; 819m
UA: 12.9%; 1,500m
B6: 11.8%; 247m
AA: 8.7%; 1,042m


Pre-Tax Profit GAAP and Margin:

AS: 17.4%; 416m
DL: 15.5%; 1,947m
WN: 14.5%; 819m
UA: 11.9%; 1,349m
B6: 12.2%; 254m
AA: 4.7%; 557m

Pre-Tax Profit excl Specials and Margin:

AS: 17.6%; 421m
DL: 15.7%; 1,967m
WN: 14.5%; 819m
UA: 12.1%; 1,377m
B6: 11.5%; 239m
AA: 7.0%; 835m


Net Profit GAAP and Margin:

AS: 13.5%; 322m
DL: 11.9%; 1,495m
WN: 11.7%; 659m
UA: 9.0%; 1,024m
B6: 9.0%; 187m
AA: 3.6%; 425m

Net Profit excl Specials and Margin:

AS: 13.6%; 326m
DL: 12.1%; 1,506m
WN: 11.7%; 659m
UA: 9.2%; 1,046m
B6: 8.4%; 176m
AA: 5.3%; 630m
 
SESGDL
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Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 11:24 am

Thanks for doing this!

Jeremy
 
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DL747400
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Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 12:19 pm

Wow, this isn't setting the stage for a DL versus AA thread at all.........
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DL747400
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Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 12:22 pm

I love it that numbers don't lie. They can still be censored, but that is another issue. In every metric category listed above, I find it very interesting to look at the top 1-2 carriers and then look at the lowest-performing carriers. Anyone else see a trend in this data?

AA's costs are far too high for the revenue they are able to generate. Historically, AA used to be able to generate a revenue premium versus the rest of the industry. Now, they are being squeezed on all sides and they are no longer able to generate that revenue premium which helped them stand out in decades past.

So how does AA plan to get their costs in line?
Last edited by DL747400 on Fri Oct 25, 2019 12:32 pm, edited 4 times in total.
From First to Worst: The history of Airliners.net.

All posts reflect my opinions, not those of my employer or any other company.
 
sxf24
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Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 12:22 pm

DL747400 wrote:
Wow, this isn't setting the stage for a DL versus AA thread at all.........


There’s no setting a stage for AA versus anyone thread...
 
jumbojet
Posts: 2957
Joined: Mon Dec 29, 2003 3:01 am

Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 12:27 pm

DL747400 wrote:
I love it that numbers don't lie. They can still be censored, but that is another issue. In every metric category listed above, I find it very interesting to look at the top 1-2 carriers and then look at the lowest-performing carriers. Anyone else see a trend in this data?


You asked....AS acquiring B6. Though personally, I can actually see SW swooping in and acquiring B6 (if the MAX crisis continues that is).
 
9w748capt
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Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 12:35 pm

DL747400 wrote:

So how does AA plan to get their costs in line?


Easy, continue to degrade their product. Oasis will help immensely. So will removing PTVs. Honestly the next step is BOB in domestic F, even on transcons. Oh and undoubtedly they'll continue the death by a thousand cuts to AAdvantage, because why not, it's not like they make anything off credit cards (except their profit).
 
MIflyer12
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Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 12:57 pm

DL747400 wrote:
So how does AA plan to get their costs in line?


They don't lower costs to meet revenues - the expectation for pattern bargaining for wages and work rules at DL/UA/AA doesn't allow it. AA employees expect DL/UA wages even though productivity is lower. If Parker had a meeting and said 'We can't pay you DL/UA wages because we don't make DL/UA profits' - well, the crap-storm would be enormous.

Look at any U.S. carrier income statement. The big money gets spent on fuel and wages. It's not PTVs (or, in a misguided a.net favorite, landing fees).

AA needs to improve productivity (RPMs and fare dollars) per employee. Some of that is on management (routes, revenue management, staffing levels) and some of that is on individual employees (completing tasks well, reliably, and quickly).
 
codc10
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Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 1:00 pm

DL747400 wrote:
Wow, this isn't setting the stage for a DL versus AA thread at all.........


You certainly did.
 
Phoenix757767
Posts: 319
Joined: Thu Aug 22, 2019 11:32 pm

Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 1:09 pm

MIflyer12 wrote:
DL747400 wrote:
So how does AA plan to get their costs in line?


They don't lower costs to meet revenues - the expectation for pattern bargaining for wages and work rules at DL/UA/AA doesn't allow it. AA employees expect DL/UA wages even though productivity is lower. If Parker had a meeting and said 'We can't pay you DL/UA wages because we don't make DL/UA profits' - well, the crap-storm would be enormous.

Look at any U.S. carrier income statement. The big money gets spent on fuel and wages. It's not PTVs (or, in a misguided a.net favorite, landing fees).

AA needs to improve productivity (RPMs and fare dollars) per employee. Some of that is on management (routes, revenue management, staffing levels) and some of that is on individual employees (completing tasks well, reliably, and quickly).

AA does more in-house work than DL especially in maintenance.
 
Varsity1
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Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 1:29 pm

Phoenix757767 wrote:
MIflyer12 wrote:
DL747400 wrote:
So how does AA plan to get their costs in line?


They don't lower costs to meet revenues - the expectation for pattern bargaining for wages and work rules at DL/UA/AA doesn't allow it. AA employees expect DL/UA wages even though productivity is lower. If Parker had a meeting and said 'We can't pay you DL/UA wages because we don't make DL/UA profits' - well, the crap-storm would be enormous.

Look at any U.S. carrier income statement. The big money gets spent on fuel and wages. It's not PTVs (or, in a misguided a.net favorite, landing fees).

AA needs to improve productivity (RPMs and fare dollars) per employee. Some of that is on management (routes, revenue management, staffing levels) and some of that is on individual employees (completing tasks well, reliably, and quickly).

AA does more in-house work than DL especially in maintenance.


Yep, and still has lower salaries than DL. 3.22b cs 3.40b.

This issue is debt. AA spends 3.16 million a day on debt service before a single airplane takes off. The company binged on debt and now it’s a problem.
"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..
 
dmorbust
Posts: 148
Joined: Thu Feb 21, 2013 11:50 pm

Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 4:28 pm

Varsity1 wrote:
Phoenix757767 wrote:
MIflyer12 wrote:

They don't lower costs to meet revenues - the expectation for pattern bargaining for wages and work rules at DL/UA/AA doesn't allow it. AA employees expect DL/UA wages even though productivity is lower. If Parker had a meeting and said 'We can't pay you DL/UA wages because we don't make DL/UA profits' - well, the crap-storm would be enormous.

Look at any U.S. carrier income statement. The big money gets spent on fuel and wages. It's not PTVs (or, in a misguided a.net favorite, landing fees).

AA needs to improve productivity (RPMs and fare dollars) per employee. Some of that is on management (routes, revenue management, staffing levels) and some of that is on individual employees (completing tasks well, reliably, and quickly).

AA does more in-house work than DL especially in maintenance.


Yep, and still has lower salaries than DL. 3.22b cs 3.40b.

This issue is debt. AA spends 3.16 million a day on debt service before a single airplane takes off. The company binged on debt and now it’s a problem.


The total employee compensation is stunning when you think that AA has 1.5 times the number of employees as Delta. No wonder employees are happier at Delta.
 
maverick4002
Posts: 283
Joined: Sun Jul 12, 2015 2:14 pm

Re: Q3 2019 US Carrier Financial Performance

Fri Oct 25, 2019 10:45 pm

DL747400 wrote:
Wow, this isn't setting the stage for a DL versus AA thread at all.........


lol what?
 
klkla
Posts: 848
Joined: Fri Jul 16, 2004 8:51 am

Re: Q3 2019 US Carrier Financial Performance

Sat Oct 26, 2019 1:56 am

AA is now where UA was at the end of the Smisek era before Munoz took over.

It's time for new leadership with a vision that can motivate the workforce and reengage customers.
 
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PacoMartin
Posts: 901
Joined: Sun May 27, 2018 8:18 pm

Re: Q3 2019 US Carrier Financial Performance

Sat Oct 26, 2019 2:31 am

From the BTS data it has pretty much the Pacific which has been driving profits down for AA for past three years.
American Airlines (Net Income) from BTS data
Year   Q   DOMESTIC   LATIN Am.   ATLANTIC   PACIFIC   TOTAL
2019   2   $472,610   $244,123   +$90,522    -$93,341   $713,914
2019   1   $167,005   $231,467   -$89,519    -$79,097   $229,855
2018   4   $382,807   $193,458   -$46,326   -$129,454   $400,485
2018   3   $116,472   $224,840   $150,423    -$89,159   $402,575
2018   2   $398,058   $226,664    $82,800    -$88,581   $618,941
2018   1   $132,352   $308,068   -$75,869   -$128,485   $236,066
2017   4   $280,081   $100,842   -$77,823   -$119,549   $183,552
2017   3   $349,281   $228,828   $126,497    -$55,905   $648,700
2017   2   $691,457   $118,670    $86,791    -$70,023   $826,895
2017   1   $329,892    $76,730   -$43,458   -$100,575   $262,590
2016   4   $384,206   $107,984   -$72,353    -$79,254   $340,583
2016   3   $492,520   $177,630   $115,350    -$27,389   $758,111
2016   2   $277,899   $298,509   $103,518   +$292,320   $972,247
2016   1    $18,836   $306,731    $69,018   +$315,686   $710,272

Annual
2018 T $1,029,688 $953,029 $111,028 -$435,678 $1,658,067
2017 T $1,650,712 $525,071 +$92,007 -$346,051 $1,921,738
2016 T $1,173,461 $890,855 $215,534 $501,362 $2,781,212
 
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PacoMartin
Posts: 901
Joined: Sun May 27, 2018 8:18 pm

Re: Q3 2019 US Carrier Financial Performance

Sat Oct 26, 2019 3:18 am

Delta consistently makes a profit in all four markets every quarter for last 3.5 years
Year   Q   DOMESTIC   LATIN    ATLANTIC   PACIFIC   TOTAL
2019   2   $872,896  $104,680   $361,534   $68,068   $1,407,178
2019   1   $422,508   $79,625   $180,431   $65,169   $747,733
2018   4   $648,210   $66,141   $231,001   $62,983   $1,008,335
2018   3   $620,420   $91,893   $428,082   $135,308   $1,275,703
2018   2   $547,392   $65,434   $324,665   $80,251   $1,017,742
2018   1   $325,483   $49,136   $159,206   $50,030   $583,855
2017   4   $425,920   $14,911   $127,255   $23,460   $591,546
2017   3   $715,427   $72,736   $304,635   $98,600   $1,191,398
2017   2   $889,627   $51,561   $241,328   $52,997   $1,235,513
2017   1   $436,046   $20,744   $110,446   $48,677   $615,913
2016   4   $469,594   $12,942   $119,041   $31,270   $632,847
2016   3   $730,844   $65,772   $329,026   $143,662   $1,269,304
2016   2 $1,050,593   $54,686   $344,923   $102,311   $1,552,513
2016   1   $727,934   $25,221   $131,431   $70,596   $955,182



United goes up and down in both Latin America and Pacific, although Atlantic is always a positive net income.
Year   Q   DOMESTIC   LATIN    ATLANTIC   PACIFIC   TOTAL
2019   2   $668,960    $55,209   $313,158   $14,612   $1,051,939
2019   1   $178,701    $29,620   $111,328   -$26,890   $292,760
2018   2   $522,788   -$43,025   $240,469   -$36,098   $684,133
2018   3   $504,608    $23,346   $234,542   $73,865   $836,361
2018   4   $378,871     $3,936   $129,963   -$49,282   $463,487
2018   1   $127,138   -$16,774   $110,834   -$74,099   $147,098
2017   2   $779,860      -$832   $160,465   -$121,313   $818,180
2017   4   $475,349    $13,483   $160,892   -$52,871   $596,853
2017   3   $438,216    $53,232   $132,099   $13,964   $637,510
2017   1   $167,432   -$16,712    $35,715   -$89,690   $96,745
2016   3   $620,424    $48,357   $191,732   $104,498   $965,010
2016   2   $508,458   -$17,656   $117,819   -$20,499   $588,122
2016   1   $324,666    -$1,502    $43,331   -$52,632   $313,862
2016   4   $307,718    $23,927    $91,703   -$26,412   $396,936

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