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ScooterTrash
Topic Author
Posts: 553
Joined: Thu Aug 02, 2001 10:39 am

U.S. Airways 1st Q Financials

Wed May 07, 2003 1:25 pm

From finance.yahoo.com:

SA - Louisiana">NEW YORK, May 6 (Reuters) - US Airways Group Inc. (OTC BB:USALA.OB - News) reported a quarterly loss before items on Tuesday, but showed a net profit of $1.63 billion after it sloughed off liabilities, took gains on cheaper aircraft financing deals, and terminated its pilots' pension plan.

US Airways, which emerged from bankruptcy on March 31 after filing for protection from creditors last August, narrowed its first-quarter pretax operating loss to $282 million from a loss of $435 million a year earlier.

The airline's net results climbed into positive territory after a series of unusual items, which stemmed from the completion of its bankruptcy restructuring, yielded a $1.92 billion overall gain.

US Airways posted a net loss of $269 million, or $3.97 per share, a year earlier. There is no yearly comparison as US Airways canceled its common stock when it emerged from bankruptcy and is working to get its new stock listed on an exchange.

The air carrier's first-quarter revenue fell to $1.5 billion from $1.7 billion, as it shrunk the size of its operations. More than 20 percent fewer passengers took US Airways' mainline flights during the quarter as compared with a year earlier.

David Siegel, US Airways' president and chief executive, said results suffered from the war in Iraq, high fuel costs, and weak economic conditions that hampered travel demand.

A $1 billion government-backed loan US Airways secured after emerging from bankruptcy boosted its restricted and unrestricted cash levels to $1.84 billion.

The Retirement Systems of Alabama, an Alabama pension fund that served as US Airways' sponsor throughout its bankruptcy, also made a planned $240 million investment in the airline.

US Airways has slashed its annual costs by about $2 billion since last summer, which includes about $1 billion in cuts it extracted from its labor unions both before and during its bankruptcy reorganization. Siegel stressed that the airline was still undertaking new cost-cutting efforts.

The reorganization helped cut US Airways' costs, which had been the highest in the industry before its bankruptcy filing, to 11.99 cents per unit. Excluding fuel, US Airways' unit costs dropped to 10.37 cents.

US Airways has said it plans to order 50 50-seat regional jets and 50 70-seat jets from either Canada's Bombardier (Toronto:BBDb.TO - News) or Brazil's Empresa Brasileira de Aeronautica SA (Sao Paolo:EMBR4.SA - News; NYSE:ERJ - News; Embraer).

The airline said it would announce orders for the regional jets this month.


Scooter comments:

This is better than many of us were expecting. Assuming fuel prices continue to fall and US Airways can realize even a modest increase in RPM's, the 2nd quarter could be very good indeed. FYI: 2nd quarter is typically US Airways' strongest.

 
AA717driver
Posts: 1502
Joined: Tue Feb 12, 2002 8:27 am

RE: U.S. Airways 1st Q Financials

Wed May 07, 2003 2:44 pm

Just goes to show that if you pay your employees squat and get a $1B loan, you really can make money in this business.TC
FL450, M.85
 
BlatantEcho
Posts: 2132
Joined: Wed Sep 27, 2000 10:11 am

RE: U.S. Airways 1st Q Financials

Wed May 07, 2003 3:17 pm

lol, that's not funny, but it's funny

 Smile/happy/getting dizzy

George
 
762er
Posts: 522
Joined: Thu Feb 08, 2001 8:18 am

RE: U.S. Airways 1st Q Financials

Wed May 07, 2003 3:36 pm

Yea, now US Airways is actually paying their employees what they can afford. (Actually we're still not making money) Shame on them.
 
Guest

RE: U.S. Airways 1st Q Financials

Wed May 07, 2003 4:04 pm

Yea, now US Airways is actually paying their employees what they can afford. (Actually we're still not making money) Shame on them.

I'm sure David Siegel, Stephen Wolf and company are only being paid what the company can afford.
 
Guest

RE: U.S. Airways 1st Q Financials

Wed May 07, 2003 7:48 pm

>>I'm sure David Siegel, Stephen Wolf and company are only being paid what the company can afford.<<

Excuse me...  Laugh out loud  Laugh out loud Laugh out loud Laugh out loud Laugh out loud Laugh out loud Laugh out loud
 
762er
Posts: 522
Joined: Thu Feb 08, 2001 8:18 am

RE: U.S. Airways 1st Q Financials

Thu May 08, 2003 5:00 am

a. Stephen Wolf is gone from the company.
b. David Siegel makes less than most, if not all, CEOs in the big 6 and has inarguably done an outstanding job in our restructuring. Plus he could be making much more than his current salary in another industry. But because he truly enjoys the airline industry and the challenge that US Airways presented him, he chose us. In fact, I believe he took a pay cut after leaving his job as CEO of Avis.

But then I guess your average pilot and office worker like myself are just as valuable to the company as he is. He's stealing our money!  Big grin. Frankly, I think the company should be thankful that we still exist in large part because of our leadership. Siegel's worth every penny and, believe it or not, most US Airways employees would agree.
 
US A333 PIT
Posts: 308
Joined: Thu Jan 18, 2001 8:36 am

RE: U.S. Airways 1st Q Financials

Thu May 15, 2003 5:18 am

I heard that US Airways actually made a profit for the first quarter. So are they out of the red now?
 
haveric
Posts: 1219
Joined: Fri Jan 05, 2001 9:31 am

RE: U.S. Airways 1st Q Financials

Thu May 15, 2003 5:47 am

They only made a profit because of the infusion of cash from the Government and their friends in Alabama, that became avaiable upon their departure from bankruptcy. This is a one-time "gain" that is not related to operations

Ignoring that, they still lost about $250 million for the quarter.
 
ouboy79
Posts: 4115
Joined: Sun Nov 18, 2001 1:48 pm

RE: U.S. Airways 1st Q Financials

Thu May 15, 2003 11:36 am

US went through about $2.7 mil per day in the first quarter...not bad when you compare it to the other guys. Almost there.
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: U.S. Airways 1st Q Financials

Thu May 15, 2003 11:44 am

There was no infusion of cash from the government... in fact, the government has given US Airways no cash at all.

N
 
ouboy79
Posts: 4115
Joined: Sun Nov 18, 2001 1:48 pm

RE: U.S. Airways 1st Q Financials

Thu May 15, 2003 5:35 pm

Neil...some people always seem to forget that.
 
US A333 PIT
Posts: 308
Joined: Thu Jan 18, 2001 8:36 am

RE: U.S. Airways 1st Q Financials

Tue May 20, 2003 12:35 pm

Haveric: I'm sorry, but I'm failing to see how a company can "make a profit" and "lose $250 million" at the same time. Definitionaly, profit/loss equals revenues minus costs. If that number is negative 250 million I don't see how it could be recorded as a profit. Would you mind explaining yourself here.
 
DTWNWA
Posts: 167
Joined: Sun May 18, 2003 12:51 pm

RE: U.S. Airways 1st Q Financials

Tue May 20, 2003 6:00 pm

>> David Siegel makes less than most, if not all, CEOs in the big 6 and has inarguably done an outstanding job in our restructuring.

US Air is no longer in top six. It is the seventh biggest.
 
artsyman
Posts: 4516
Joined: Wed Feb 28, 2001 12:35 pm

RE: U.S. Airways 1st Q Financials

Tue May 20, 2003 10:06 pm

There was no infusion of cash from the government... in fact, the government has given US Airways no cash at all.
*********************

Well this same "NO amount of cash from the Government" that you speak of is the same cash that many of you on here were calling a bailout from the government. The reason why this is essentially from the government is that the government underwrote this loan from the private sector, because no company in their right mind would ever have lent US the money without that protection.
On emergence from Chapt 11, US qualified for I believe 900,000,000 dollars that was a protected loan.

I say this is an infusion from the government. I am not saying I have a problem with it, just commenting on what it is.

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