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LAXintl
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United announces strong 2019 Q4/full year numbers

Tue Jan 21, 2020 9:37 pm

United Airlines beats Q4 earnings and revenue.


o Reported fourth quarter net income of $641 million, diluted EPS of $2.53, up 50% versus the fourth quarter of 2018, pre-tax earnings of $844 million and pre-tax margin of 7.8 percent, expanding pre-tax margin 2.5 points versus the fourth quarter of 2018.
o Reported fourth quarter adjusted net income of $676 million, adjusted diluted EPS of $2.67, up 11% versus the fourth quarter of 2018, adjusted pre-tax earnings of $889 million and adjusted pre-tax margin of 8.2 percent, expanding adjusted pre-tax margin 0.5 points versus the fourth quarter of 2018.1
o Reported full year net income of $3.0 billion, diluted EPS of $11.58, up 51% versus full year 2018, pre-tax earnings of $3.9 billion and pre-tax margin of 9.0 percent, expanding pre-tax margin 2.6 points versus full year 2018.
o Reported full year adjusted net income of $3.1 billion, adjusted diluted EPS of $12.05, up 32% versus full year 2018, adjusted pre-tax earnings of $4.1 billion and adjusted pre-tax margin of 9.4 percent, expanding adjusted pre-tax margin 1.7 points versus full year 2018.


https://hub.united.com/2020-01-21-unite ... 83756.html

2019 was also record year for company in number of flights operated, and passengers carried.


Call tomorrow morning.
From the desert to the sea, to all of Southern California
 
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adamblang
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Re: United announces strong 2019 Q4/full year numbers

Tue Jan 21, 2020 9:41 pm

From LAXintl's link:
United Airlines (UAL) today announced it reached its 2020 goal -- first announced in January 2018 -- to achieve adjusted diluted earnings per share (EPS) target of $11 to $13 a full year ahead of schedule.

Being way ahead of schedule is pretty exciting.
 
LHUSA
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Re: United announces strong 2019 Q4/full year numbers

Tue Jan 21, 2020 9:56 pm

adamblang wrote:
From LAXintl's link:
United Airlines (UAL) today announced it reached its 2020 goal -- first announced in January 2018 -- to achieve adjusted diluted earnings per share (EPS) target of $11 to $13 a full year ahead of schedule.

Being way ahead of schedule is pretty exciting.


Wow incredible achievement, thanks for highlighting that. Congrats to UA on a very solid querer and 2019.
 
ericm2031
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Re: United announces strong 2019 Q4/full year numbers

Tue Jan 21, 2020 9:59 pm

Very solid numbers, especially considering all the MAX noise.
 
ethernal
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Re: United announces strong 2019 Q4/full year numbers

Tue Jan 21, 2020 10:24 pm

ericm2031 wrote:
Very solid numbers, especially considering all the MAX noise.


I could flip that around and say that carriers are having a bumper year in part because of the MAX noise.

The MAX is essentially instituting involuntary forced capacity discipline which is driving yields up on all routes.

This is not the only factor (United has done a great job turning around their ops over the past five years), but forced industry-wide capacity constraints will lift margins - this is exactly what we've seen this year for all the carriers. Of the majors, Delta has obviously benefited the "most" since they have benefited without losing planned capacity.
 
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spinotter
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Re: United announces strong 2019 Q4/full year numbers

Tue Jan 21, 2020 10:34 pm

ethernal wrote:
ericm2031 wrote:
Very solid numbers, especially considering all the MAX noise.


I could flip that around and say that carriers are having a bumper year in part because of the MAX noise.

The MAX is essentially instituting involuntary forced capacity discipline which is driving yields up on all routes.

This is not the only factor (United has done a great job turning around their ops over the past five years), but forced industry-wide capacity constraints will lift margins - this is exactly what we've seen this year for all the carriers. Of the majors, Delta has obviously benefited the "most" since they have benefited without losing planned capacity.


Once AA and WN have reported their 4Q and full year numbers, can somebody do the four way comparison for both periods?
 
tphuang
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Re: United announces strong 2019 Q4/full year numbers

Tue Jan 21, 2020 10:35 pm

Pretty good quarter for UA. RASM up 0.7%, CASM-ex up 2.7%.
 
tkoenig95
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Re: United announces strong 2019 Q4/full year numbers

Tue Jan 21, 2020 10:53 pm

Congrats to an amazing airline! Oscar did an amazing job and is vacating his immediate position to a company that is trending nowhere but up.
 
jayunited
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Re: United announces strong 2019 Q4/full year numbers

Tue Jan 21, 2020 11:07 pm

ericm2031 wrote:
Very solid numbers, especially considering all the MAX noise.


Even though the MAX grounding caused UA to remove over 2,800 flights from the schedule in 2019, I think because UA had so few in service when the fleet type was grounded helped us out. Also UA had some slack into the widebody fleet thanks to Polaris/PE installation. During the early days of the MAX grounding UA for example was flying half empty 77Es LAX/SFO-OGG, 763s were on IAH-TPA/MCO as replacements for 739ER or A320s, there were a few IAH-LAX-IAH flights that were scheduled on the MAX but were upguaged to the 78X with a ton of empty seats. These were necessary moves to help UA cover other domestic flying. However once Q3 started UA had revamped the schedule and was better able to absorb the MAX grounding than say AA or WN. Although our Polaris/PE installation schedule has slipped quite a bit as a result of the grounding (installation will not wrap up in December 2020 as previously announced it looks like perhaps Q2 2021) but having those extra widebody aircraft available provided UA with options we otherwise would not have had.

Also UA has some good leaders in Munoz and Kirby, I don't believe our 2019 results would have been this positive if Smisek was still running the show. Keep in mind Munoz and Kirby navigated the MAX grounding while still managing to get DEN to 500 daily departures during the summer of 2019.
 
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intotheair
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 12:26 am

Very exciting news, and I wish the stock price would reflect that. UAL is basically flat in after hours trading after taking a shellacking in trading today. Looks like it was a result of the coronavirus scare, though I imagine that is only temporary.
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PacoMartin
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 12:28 am

spinotter wrote:
Once AA and WN have reported their 4Q and full year numbers, can somebody do the four way comparison for both periods?

AA this thursday in two days
WN this friday in three days

A rising tide floats all boats
U.S. Airline Jan-Dec Passengers in millions
2009 704
2010 720
2011 731
2012 737
2013 743
2014 763
2015 798
2016 824
2017 849
2018 889
2019 (est) 926

Oper Profit (millions) ----- Operational Revenue (millions) for first three quarters of 2019 - ratio of two numbers
$5.16 Delta Air Lines Inc. $35.66 14.48%
$3.44 United Air Lines Inc. $32.37 10.63%
$2.30 American Airlines Inc. $34.45 6.68%
$2.29 Southwest Airlines Co. $16.70 13.73%
$1.45 Federal Express Corporation $27.27 5.30%
$0.79 Alaska Airlines Inc. $6.55 12.12%
$0.58 JetBlue Airways $6.06 9.51%
$0.38 Spirit Air Lines $2.86 13.16%
$0.27 Hawaiian Airlines Inc. $2.12 12.89%
$0.25 Allegiant Air $1.31 19.09%
$0.24 Frontier Airlines Inc. $1.85 13.01%
$0.20 SkyWest Airlines Inc. $2.18 9.32%
$0.16 United Parcel Service $4.71 3.50%
$0.12 Republic Airline $1.00 12.17%
$0.09 Mesa Airlines Inc. $0.55 16.08%
$0.07 Sun Country Airlines d/b/a MN Airlines $0.54 13.87%

Operational profit is just the profit from operations and is not the same as net income which includes financing and various accounting credits or deficits from changes in tax law and similar items.
 
ShamrockBoi330
Posts: 353
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 12:34 am

Sooooooooooooo no disclosures of a 40x 339 purchase??

:duck:
 
SteelChair
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 12:38 am

The MAX grounding is doing something that inept airline management is unable to do: enforce capacity discipline, thereby keeping yields high.
 
MIflyer12
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 12:49 am

You could look at AA/DL/UA growth annually in ASMs versus WN, NK, B6, and F9 for the last seven years or so.
 
TrafficCop
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 12:54 am

ShamrockBoi330 wrote:
Sooooooooooooo no disclosures of a 40x 339 purchase??

:duck:


:banghead: :hissyfit:
Agreed would be a great 767 replacement/growth aircraft say 5-7 years down the road especially off East Coast(EWR)
 
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lightsaber
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 1:22 am

PacoMartin wrote:
spinotter wrote:
Once AA and WN have reported their 4Q and full year numbers, can somebody do the four way comparison for both periods?

AA this thursday in two days
WN this friday in three days

A rising tide floats all boats
U.S. Airline Jan-Dec Passengers in millions
2009 704
2010 720
2011 731
2012 737
2013 743
2014 763
2015 798
2016 824
2017 849
2018 889
2019 (est) 926

Oper Profit (millions) ----- Operational Revenue (millions) for first three quarters of 2019 - ratio of two numbers
$5.16 Delta Air Lines Inc. $35.66 14.48%
$3.44 United Air Lines Inc. $32.37 10.63%
$2.30 American Airlines Inc. $34.45 6.68%
$2.29 Southwest Airlines Co. $16.70 13.73%
$1.45 Federal Express Corporation $27.27 5.30%
$0.79 Alaska Airlines Inc. $6.55 12.12%
$0.58 JetBlue Airways $6.06 9.51%
$0.38 Spirit Air Lines $2.86 13.16%
$0.27 Hawaiian Airlines Inc. $2.12 12.89%
$0.25 Allegiant Air $1.31 19.09%
$0.24 Frontier Airlines Inc. $1.85 13.01%
$0.20 SkyWest Airlines Inc. $2.18 9.32%
$0.16 United Parcel Service $4.71 3.50%
$0.12 Republic Airline $1.00 12.17%
$0.09 Mesa Airlines Inc. $0.55 16.08%
$0.07 Sun Country Airlines d/b/a MN Airlines $0.54 13.87%

Operational profit is just the profit from operations and is not the same as net income which includes financing and various accounting credits or deficits from changes in tax law and similar items.

First thank you for compiling the numbers.

As you noted, operating profit is incomplete.
http://ir.allegiantair.com/presentations

In Allegiant's 2019 investor presentation, search for yiels, notes that at > $50 ancillary revenue per passenger, shifting focus from yield to load factor.

I know all airlines, including United, do this as selling hotels, rental cars, credit cards, and other options is just too profitable. Airline customers are a trapped market where ancillary profit easily is more than opperating profit.

So UA is doing well, but due to evolving business models, the increase in passenger numbers is just as critical. Since United did well on both, Kudos to them.

Lightsaber
Winter is coming.
 
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spinotter
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 3:16 pm

PacoMartin wrote:
spinotter wrote:
Once AA and WN have reported their 4Q and full year numbers, can somebody do the four way comparison for both periods?

AA this thursday in two days
WN this friday in three days

A rising tide floats all boats
U.S. Airline Jan-Dec Passengers in millions
2009 704
2010 720
2011 731
2012 737
2013 743
2014 763
2015 798
2016 824
2017 849
2018 889
2019 (est) 926

Oper Profit (millions) ----- Operational Revenue (millions) for first three quarters of 2019 - ratio of two numbers
$5.16 Delta Air Lines Inc. $35.66 14.48%
$3.44 United Air Lines Inc. $32.37 10.63%
$2.30 American Airlines Inc. $34.45 6.68%
$2.29 Southwest Airlines Co. $16.70 13.73%
$1.45 Federal Express Corporation $27.27 5.30%
$0.79 Alaska Airlines Inc. $6.55 12.12%
$0.58 JetBlue Airways $6.06 9.51%
$0.38 Spirit Air Lines $2.86 13.16%
$0.27 Hawaiian Airlines Inc. $2.12 12.89%
$0.25 Allegiant Air $1.31 19.09%
$0.24 Frontier Airlines Inc. $1.85 13.01%
$0.20 SkyWest Airlines Inc. $2.18 9.32%
$0.16 United Parcel Service $4.71 3.50%
$0.12 Republic Airline $1.00 12.17%
$0.09 Mesa Airlines Inc. $0.55 16.08%
$0.07 Sun Country Airlines d/b/a MN Airlines $0.54 13.87%

Operational profit is just the profit from operations and is not the same as net income which includes financing and various accounting credits or deficits from changes in tax law and similar items.


I assume you mean billions for operating revenue and profit, right?
 
strfyr51
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 3:29 pm

ShamrockBoi330 wrote:
Sooooooooooooo no disclosures of a 40x 339 purchase??

:duck:

40 A339's? Where did you get that idea? I've never seen that online or in Print. Not even in Aviation week, www.Airliners.Net nor Air transport world Online. and I get all 3.
Plus I get Flying together as I'm a retired UAL maintenance Controller, Didn't see that anywhere... and they're to replace or add to what?
 
ShamrockBoi330
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 3:35 pm

strfyr51 wrote:
ShamrockBoi330 wrote:
Sooooooooooooo no disclosures of a 40x 339 purchase??

:duck:

40 A339's? Where did you get that idea? I've never seen that online or in Print. Not even in Aviation week, https://www.airliners.net nor Air transport world Online. and I get all 3.
Plus I get Flying together as I'm a retired UAL maintenance Controller, Didn't see that anywhere... and they're to replace or add to what?


1. Sarcasm is obviously missed,

2. There is a lengthy thread on here about the recent unidentified order for 40x 339. u obviously didnt read this lengthy thread .

Its pretty obvious it wasnt United, that was my whole point :roll:
Last edited by ShamrockBoi330 on Wed Jan 22, 2020 3:37 pm, edited 2 times in total.
 
ethernal
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 3:36 pm

strfyr51 wrote:
ShamrockBoi330 wrote:
Sooooooooooooo no disclosures of a 40x 339 purchase??

:duck:

40 A339's? Where did you get that idea? I've never seen that online or in Print. Not even in Aviation week, https://www.airliners.net nor Air transport world Online. and I get all 3.
Plus I get Flying together as I'm a retired UAL maintenance Controller, Didn't see that anywhere... and they're to replace or add to what?


There was another thread where some people hypothesized that the undisclosed buyer of 40 A339s on Airbus' order list was United despite the fact they already had a fleet of 789s and would most likely have had to report at the time of signing (with the "last holdout" interpretations being that it may be held to the next quarterly result).
 
BA777FO
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 3:51 pm

I see they stated that profit sharing among employees was up 45% versus last year; does anyone know how that translates into amounts for various staff groups? How does it compare to the 2 months salary Delta is paying?
 
MIflyer12
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 3:59 pm

BA777FO wrote:
I see they stated that profit sharing among employees was up 45% versus last year; does anyone know how that translates into amounts for various staff groups? How does it compare to the 2 months salary Delta is paying?


Up 45% means it's not going to be anywhere close to Delta's 2019 payments of $1,643 million next month.

From the 2/2019 annual report: The Company recorded profit sharing and related payroll tax expense of $334 million, $349 million and $628 million in 2018, 2017 and 2016, respectively.
 
LHUSA
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 4:16 pm

MIflyer12 wrote:
BA777FO wrote:
I see they stated that profit sharing among employees was up 45% versus last year; does anyone know how that translates into amounts for various staff groups? How does it compare to the 2 months salary Delta is paying?


Up 45% means it's not going to be anywhere close to Delta's 2019 payments of $1,643 million next month.

From the 2/2019 annual report: The Company recorded profit sharing and related payroll tax expense of $334 million, $349 million and $628 million in 2018, 2017 and 2016, respectively.


Thanks for the color Jumbo, your persistence is truly extraordinary.

Again, congrats to United on a very solid quarter and for increasing profit by 45% vs. PY.
 
BA777FO
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 4:34 pm

MIflyer12 wrote:
BA777FO wrote:
I see they stated that profit sharing among employees was up 45% versus last year; does anyone know how that translates into amounts for various staff groups? How does it compare to the 2 months salary Delta is paying?


Up 45% means it's not going to be anywhere close to Delta's 2019 payments of $1,643 million next month.

From the 2/2019 annual report: The Company recorded profit sharing and related payroll tax expense of $334 million, $349 million and $628 million in 2018, 2017 and 2016, respectively.


Thank you :thumbsup:

So probably more like a week's salary as a bonus, ~2%ish? Thanks for the figures, much appreciated.
 
Scarebus34
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 4:37 pm

United does not expect to fly the Max aircraft at all during the summer... currently working on plans to pull them out of the schedule.
 
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United787
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 4:37 pm

ethernal wrote:
The MAX is essentially instituting involuntary forced capacity discipline which is driving yields up on all routes.


But UA is still paying large payments for 14 planes that are sitting on the ground. Are you suggesting that the increased yields is potentially more profitable than whatever profits they would have made off those 14 planes + the costs of the airplanes?

Of course, UA will eventually get some compensation from Boeing for this grounding also, but I don't think that has been worked out yet?

Congrats to UA, keeps getting better in the friendly skies.
Last edited by United787 on Wed Jan 22, 2020 4:38 pm, edited 1 time in total.
 
Scarebus34
Posts: 529
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 4:38 pm

BA777FO wrote:
MIflyer12 wrote:
BA777FO wrote:
I see they stated that profit sharing among employees was up 45% versus last year; does anyone know how that translates into amounts for various staff groups? How does it compare to the 2 months salary Delta is paying?


Up 45% means it's not going to be anywhere close to Delta's 2019 payments of $1,643 million next month.

From the 2/2019 annual report: The Company recorded profit sharing and related payroll tax expense of $334 million, $349 million and $628 million in 2018, 2017 and 2016, respectively.


Thank you :thumbsup:

So probably more like a week's salary as a bonus, ~2%ish? Thanks for the figures, much appreciated.

No. Each work group has contractual profit sharing payouts - They will be higher than 2% with some being close to 10%.
 
BA777FO
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 4:43 pm

Scarebus34 wrote:
BA777FO wrote:
MIflyer12 wrote:

Up 45% means it's not going to be anywhere close to Delta's 2019 payments of $1,643 million next month.

From the 2/2019 annual report: The Company recorded profit sharing and related payroll tax expense of $334 million, $349 million and $628 million in 2018, 2017 and 2016, respectively.


Thank you :thumbsup:

So probably more like a week's salary as a bonus, ~2%ish? Thanks for the figures, much appreciated.

No. Each work group has contractual profit sharing payouts - They will be higher than 2% with some being close to 10%.


Ah, thank you. Interesting to see how much more motivated and engaged staff appear to be at airlines with generous profit sharing initiatives and how it's helping the company's bottom line.
 
ethernal
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 4:57 pm

United787 wrote:
ethernal wrote:
The MAX is essentially instituting involuntary forced capacity discipline which is driving yields up on all routes.


But UA is still paying large payments for 14 planes that are sitting on the ground. Are you suggesting that the increased yields is potentially more profitable than whatever profits they would have made off those 14 planes + the costs of the airplanes?

Of course, UA will eventually get some compensation from Boeing for this grounding also, but I don't think that has been worked out yet?

Congrats to UA, keeps getting better in the friendly skies.


Yes, that is exactly what I am saying. 13 planes is nothing compared to their (mainline + regional) fleet of 1000+ aircraft - plus those 13 planes are likely on a decelerated depreciation cycle because they are not flying (and depreciation is what will flow through to the income statement - not whatever cash payments they are making at present). Yields increasing 2% on 1000+ aircraft more than makes up for the extremely tiny cost of 13 planes sitting.
 
dstblj52
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 5:06 pm

ethernal wrote:
United787 wrote:
ethernal wrote:
The MAX is essentially instituting involuntary forced capacity discipline which is driving yields up on all routes.


But UA is still paying large payments for 14 planes that are sitting on the ground. Are you suggesting that the increased yields is potentially more profitable than whatever profits they would have made off those 14 planes + the costs of the airplanes?

Of course, UA will eventually get some compensation from Boeing for this grounding also, but I don't think that has been worked out yet?

Congrats to UA, keeps getting better in the friendly skies.


Yes, that is exactly what I am saying. 13 planes is nothing compared to their (mainline + regional) fleet of 1000+ aircraft - plus those 13 planes are likely on a decelerated depreciation cycle because they are not flying (and depreciation is what will flow through to the income statement - not whatever cash payments they are making at present). Yields increasing 2% on 1000+ aircraft more than makes up for the extremely tiny cost of 13 planes sitting.

If that was true UA should never have bought them unless they were replacements in which case older less efficient aircraft are flying in their place.
 
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PacoMartin
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 5:08 pm

spinotter wrote:
I assume you mean billions for operating revenue and profit, right?

Of course. Sorry I wrote millions for passengers, and I just repeated it.

lightsaber wrote:
In Allegiant's 2019 investor presentation, search for yiels, notes that at > $50 ancillary revenue per passenger, shifting focus from yield to load factor.


I wasn't thinking about ancillary income as much as some accounting procedure that has nothing to do with operations.

For instance, Southwest OPERATING INCOME from 4th quarter 2017 was $773 million which was down 8.6% from 4th quarter 2016 $846 million. The drop in OPERATING INCOME was because expenses had increased by $271 million, while revenue had only increased $198 million.

But Southwest had taken deferred tax liability of a whopping $1,410 million for a tax reform impact with the following statement.
"We applaud Congress and the President for the tax reform legislation passed on December 22, 2017. We celebrated the passage of tax reform with our Employees through a $1,000 per person cash bonus paid on January 8, 2018. We also announced an incremental donation to charitable causes and an additional investment in our fleet to support future growth opportunities and fleet modernization. The tax reform is very meaningful to Southwest Airlines, reducing our 2017 deferred tax liability by $1.4 billion. Based on our current outlook, the reduction in the statutory federal rate will result in hundreds of millions in tax savings, which will significantly boost our earnings in 2018.


While such accounting procedures are significant for investment purposes and obviously employees who received the $1000 cash bonus, most people on this forum are interested in operations
 
CriticalPoint
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 5:09 pm

dstblj52 wrote:
ethernal wrote:
United787 wrote:

But UA is still paying large payments for 14 planes that are sitting on the ground. Are you suggesting that the increased yields is potentially more profitable than whatever profits they would have made off those 14 planes + the costs of the airplanes?

Of course, UA will eventually get some compensation from Boeing for this grounding also, but I don't think that has been worked out yet?

Congrats to UA, keeps getting better in the friendly skies.


Yes, that is exactly what I am saying. 13 planes is nothing compared to their (mainline + regional) fleet of 1000+ aircraft - plus those 13 planes are likely on a decelerated depreciation cycle because they are not flying (and depreciation is what will flow through to the income statement - not whatever cash payments they are making at present). Yields increasing 2% on 1000+ aircraft more than makes up for the extremely tiny cost of 13 planes sitting.

If that was true UA should never have bought them unless they were replacements in which case older less efficient aircraft are flying in their place.


That is not the point he was making
 
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KVH68
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Re: United announces strong 2019 Q4/full year numbers

Wed Jan 22, 2020 10:49 pm

During Earnings Live, Scott Kirby did say there is a chance that we will not take the A350. That decision will be made in the future.
 
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intotheair
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Re: United announces strong 2019 Q4/full year numbers

Thu Jan 23, 2020 2:22 am

KVH68 wrote:
During Earnings Live, Scott Kirby did say there is a chance that we will not take the A350. That decision will be made in the future.


Where did you hear that? I listened to the whole call and looked at the transcript and didn't find any mention of the A350.

What struck me the most about this quarter's call is how the management team seemed to take a more frustrated tone about the MAX woes. They've been fairly restrained in the last few quarters, but this time around, they really articulated how the MAX has slowed the mid-continent growth strategy in ORD and IAH. Andrew Nocella also made comments about how it also prevented them from upgauging a lot of routes from RJs to mainline.
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
 
codc10
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Re: United announces strong 2019 Q4/full year numbers

Thu Jan 23, 2020 2:29 am

intotheair wrote:
What struck me the most about this quarter's call is how the management team seemed to take a more frustrated tone about the MAX woes. They've been fairly restrained in the last few quarters, but this time around, they really articulated how the MAX has slowed the mid-continent growth strategy in ORD and IAH. Andrew Nocella also made comments about how it also prevented them from upgauging a lot of routes from RJs to mainline.


No doubt consistent with the position United is taking privately with Boeing as compensation for the MAX delays is discussed.
 
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intotheair
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Re: United announces strong 2019 Q4/full year numbers

Thu Jan 23, 2020 2:37 am

codc10 wrote:
intotheair wrote:
What struck me the most about this quarter's call is how the management team seemed to take a more frustrated tone about the MAX woes. They've been fairly restrained in the last few quarters, but this time around, they really articulated how the MAX has slowed the mid-continent growth strategy in ORD and IAH. Andrew Nocella also made comments about how it also prevented them from upgauging a lot of routes from RJs to mainline.


No doubt consistent with the position United is taking privately with Boeing as compensation for the MAX delays is discussed.


Oh definitely. And they were quick to say that they wanted to keep those discussions with Boeing private and that they have never wanted to use MAX issues as an excuse for anything. But the tone around the MAX conversation this time around seemed a little sharper than last quarter's call.
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SFOtoORD
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Re: United announces strong 2019 Q4/full year numbers

Thu Jan 23, 2020 2:40 am

intotheair wrote:
KVH68 wrote:
During Earnings Live, Scott Kirby did say there is a chance that we will not take the A350. That decision will be made in the future.


Where did you hear that? I listened to the whole call and looked at the transcript and didn't find any mention of the A350.

What struck me the most about this quarter's call is how the management team seemed to take a more frustrated tone about the MAX woes. They've been fairly restrained in the last few quarters, but this time around, they really articulated how the MAX has slowed the mid-continent growth strategy in ORD and IAH. Andrew Nocella also made comments about how it also prevented them from upgauging a lot of routes from RJs to mainline.


The A321XLR order was certainly a clear message to Boeing. I also feel like if the MAX gets it together that UA will place a big order for some deeply discounted MAXs down the line.
 
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KVH68
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Re: United announces strong 2019 Q4/full year numbers

Thu Jan 23, 2020 2:53 am

intotheair wrote:
KVH68 wrote:
During Earnings Live, Scott Kirby did say there is a chance that we will not take the A350. That decision will be made in the future.


Where did you hear that? I listened to the whole call and looked at the transcript and didn't find any mention of the A350.


This was on an internal webcast for employees on Flying Together.
 
Coalways
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Re: United announces strong 2019 Q4/full year numbers

Thu Jan 23, 2020 12:15 pm

Nice year for UA....wonder what they have up there sleeves. Sounds like a lot of new soft services are going to be introduced this year.
 
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DL747400
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Re: United announces strong 2019 Q4/full year numbers

Thu Jan 23, 2020 3:46 pm

Good results and progress for sure, but still more work to do.

UA brought in $43 billion USD in revenue in 2019. Even after considering the continued 737 MAX grounding, UA should be generating more than $3.9 billion USD in annual profits.

UA has a great network. So does UA have a revenue problem relative to their cost structure? Or does UA have a cost problem relative to their revenues? Or is it a combination of both?
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MIflyer12
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Re: United announces strong 2019 Q4/full year numbers

Thu Jan 23, 2020 5:08 pm

DL747400 wrote:
UA has a great network. So does UA have a revenue problem relative to their cost structure? Or does UA have a cost problem relative to their revenues? Or is it a combination of both?


You could start by comparing their TRASM (or PRASM) and CASM to their peers. Look at revenue per employee. Look at ASMs per employee.
 
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spinotter
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Re: United announces strong 2019 Q4/full year numbers

Sat Jan 25, 2020 8:45 pm

KVH68 wrote:
During Earnings Live, Scott Kirby did say there is a chance that we will not take the A350. That decision will be made in the future.


The A versus B meme in this is so tired. Honestly I think the 787 series may be more future-leaning because of its composite structure, but what do I know? Does the A350 have missions where it performs better than any 787? Else why would any airline buy it?

So UA ordered A350's during Smisek's tenure, is that right, and now the neo-conservatives under Scott Kirby say no more A350's, or any AXXX's for that matter, right? Not formally canceled but very much in doubt for political reasons, as I understand? To me, all of the US3 DL/UA/AA can afford and should have both A and B in roughly equal numbers in their fleets. Right now DL is benefiting because it has no 737-MAX. Am I right? Am I wrong?
 
Rdh3e
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Re: United announces strong 2019 Q4/full year numbers

Sat Jan 25, 2020 8:48 pm

spinotter wrote:
or any AXXX's for that matter, right?

Except UA just ordered a ton of A321XLRs...

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