User avatar
STT757
Topic Author
Posts: 13980
Joined: Tue Mar 28, 2000 1:14 am

UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 1:33 pm

Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
User avatar
Miami
Posts: 6099
Joined: Sat Sep 15, 2012 8:37 pm

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 3:02 pm

Notes from article:

-United earned a 12.9 percent return on invested capital in 2014.

-United's consolidated passenger revenue per available seat mile (PRASM) increased 1.6 percent for full-year 2014 compared to full-year 2013.

-Full-year 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.3 percent year-over-year on a consolidated capacity increase of 0.3 percent. Full-year 2014 CASM, including those items, decreased 1.6 percent year-over-year.

-In 2014, United returned approximately $320 million to shareholders as part of its previously announced $1 billion share buyback program. In addition, throughout the year, United spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares of UAL common stock.

-Employees earned $235 million in profit sharing for full-year 2014, which will be distributed on Feb. 13.

-United ended the year with $5.7 billion in unrestricted liquidity.
Aviation is proof that given, the will, we have the capacity to achieve the impossible. - Eddie Rickenbacker
 
eaglepower83
Posts: 360
Joined: Tue Oct 04, 2011 2:54 pm

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 3:54 pm

Congrats UA.
You're still a miserable mess to fly.
 
a380787
Posts: 4573
Joined: Tue Jul 09, 2013 4:38 pm

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 4:08 pm

Quoting EaglePower83 (Reply 5):
Congrats UA.
You're still a miserable mess to fly.

When's the last time you flew on UA on a revenue non-ZED non-ID90 non-NRSA ticket ?
 
VgnAtl747
Posts: 1333
Joined: Fri Apr 06, 2001 3:59 am

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 4:51 pm

Quoting EaglePower83 (Reply 5):
You're still a miserable mess to fly.

It's not nearly as bad as some make it out to be. I've certainly had my share of less than stellar trips, but I just did a trip to PHX and back (via ORD) and everything was on time, crews were pleasant, service was on par with what I get when I fly DL. I honestly have no complaints from my last two trips.

Ask me again in 3 weeks when I've finished another 30k BIS longhaul on UA though...
Work Hard. Fly Right. Continental Airlines
 
User avatar
calpsafltskeds
Posts: 3080
Joined: Tue Dec 19, 2006 1:29 am

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 5:06 pm

UA to add/remove following aircraft to fleet in 2015
789 +11 to 25 total 788/789 YE15
752 -13 to 81 total YE15
73G +2 (used aircraft) total 38 YE15
739 +23 to 140 YE15
744 -2 to 21 total YE15 (heavy maint. checks due)
763 no change, not sure when 11 will start mod to 2 class - total 35 YE15
772 no change at 74 YE15
773 purchase not confirmed

UAX
Q400 -8 to total 20 YE2015
Q300 no change total 5
Q200 no change total 16
E145 -53 to total 192 YE 2015
E135 -9 fleet removed
C200 -18 to total 50 YE 2015
C700 -15 to total 100 YE 2015
E120 -9 fleet removed
E170 no change total 38
E175 +49 to total of 82 (NOTE: I show 37 in service in 2014 vs. 33 shown on Fleet Plan - if so then +45 in 2015)

451 aircraft with WiFi, complete by Summer 2015
194 streaming content - complete by YE 2015
Slimline 85% by YE2015
 
32andBelow
Posts: 4141
Joined: Mon Sep 03, 2012 2:54 am

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 5:13 pm

Quoting a380787 (Reply 6):
When's the last time you flew on UA on a revenue non-ZED non-ID90 non-NRSA ticket ?

It's amazing as a Non-rev. Economy plus for days.
 
omad
Posts: 40
Joined: Thu May 08, 2014 10:39 pm

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 5:18 pm

Good news!

Quoting EaglePower83 (Reply 5):
Quoting EaglePower83 (Reply 5):
Congrats UA.
You're still a miserable mess to fly.



I fly UA out of Houston here and there. I guess I've been lucky enough to avoid those awful flights that I read about on the forums. All my flights have been pretty good as far as service and on time goes.

I know quite a few people that I work with that would chose UA in a heart beat. In fairness, those people have flown Spirit. I hear more negative stuff (at work) about Spirit than any other airline. I have flown Spirit, It was okay. Rude flight attendents departing, but my return trip was great. So I'm 50/50.

I'm glad my home town airline is doing well financially. Hopfully I start hearing some positive flying experince about them.
 
User avatar
jetblastdubai
Posts: 1898
Joined: Sun Aug 18, 2013 10:23 am

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 5:21 pm

Quoting CALPSAFltSkeds (Reply 8):
C700 -15 to total 100 YE 2015

What's up with this reduction? I thought the CRJ7 was still a viable, non-hated, relatively passenger friendly, 2-class airplane.
 
strfyr51
Posts: 4261
Joined: Tue Apr 10, 2012 5:04 pm

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 6:08 pm

Quoting a380787 (Reply 6):
When's the last time you flew on UA on a revenue non-ZED non-ID90 non-NRSA ticket ?

Sunday the 18th FLL- ORD, and the flight was excellent But Full to the gunnels. . I don't think ANYBODY is really getting out on
NRSA anymore. I've got 31 years and I'm having to buy Full fare (20% employee discounted) tickets to travel which Really aren't that bad
considering the departure times I have to fly ( Way off Peak) . But I don't have to stand By and Most of the time I get E+.
So I'm Cool..
 
Max Q
Posts: 7993
Joined: Wed May 09, 2001 12:40 pm

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 6:14 pm

Down to 5.7 Billion cash now then.


After the merger they had over 9 Billion, where did 3.3 Billion go ?
The best contribution to safety is a competent Pilot.


GGg
 
Rdh3e
Posts: 3587
Joined: Wed Mar 30, 2011 2:09 pm

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 7:13 pm

Quoting Max Q (Reply 13):
After the merger they had over 9 Billion, where did 3.3 Billion go ?

Debt repayment, share buy-backs etc. Having too much cash on hand is unhealthy for the company as it lowers average return on investment. Aside from a cushion of cash to sustain the company in a shock, if you're not investing the money to improve the company, then it needs to be made available to shareholders.

$9B was 2 companies both with cash stockpiled for a crisis or merger, now that extra buffer is no longer necessary so it's being right-sized with excess cash being returned.

[Edited 2015-01-22 11:13:58]
 
COSPN
Posts: 1770
Joined: Fri Oct 12, 2001 6:33 am

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 8:29 pm

So why fire 2200 employees and give 28 stations to unqualified vendors like simplicity ?? Or even worse write Huge checks to your competition (DGS/ DL) and (Envoy/ AA) ?? I can't imagine Coke mailing a $400,000 dollar check to Pepsi every week to pay for drivers to deliver Coke products .

Some things just don't make sense .
 
UA444
Posts: 2792
Joined: Sun Mar 09, 2014 7:03 am

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 9:03 pm

Quoting COSPN (Reply 15):
So why fire 2200 employees and give 28 stations to unqualified vendors like simplicity ?? Or even worse write Huge checks to your competition (DGS/ DL) and (Envoy/ AA) ?? I can't imagine Coke mailing a $400,000 dollar check to Pepsi every week to pay for drivers to deliver Coke products .

Some things just don't make sense .

Yep. These profits are a hallow victory. And its' more than 28 stations, there were 25 or so that were already cut.
 
jayunited
Posts: 2438
Joined: Sat Jan 05, 2013 12:03 am

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 9:21 pm

Considering the horrendous Q1-2014 UA had where we were the only major airline in the U.S. to loose money I must say I am surprise that UA was able to end 2014 on such a strong note. Congrats to UA employees who help make this happen.

With comeback like this I'm not sure why UA still feels the need to continue contracting out line stations. Employees all over have really step up to every challenge UA has thrown our way we have cut cost in our departments daily operations to increase UA's profits and we are trying everyday to improve our customers travel experience and many other things. A lot of employees that I've run into are asking with results like this why does UA still feel the need to cut dedicated UA employees for more contract employees who could care less especially when UA is making money. Most ground staff employees what to know when will UA end the assault against them? How much money does UA need to make in a quarter before they say enough and stop giving jobs to the lowest bidder? UA has a great way of thanking their employees for all their hard work because it wasn't easy recovering from our financially disastrous Q1-2014.
 
User avatar
United787
Posts: 2926
Joined: Fri May 20, 2005 12:20 pm

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 9:49 pm

Quoting CALPSAFltSkeds (Reply 8):
752 -13 to 81 total YE15

Good riddens... I know A-netters love the 757, as do I, but they are old and dated, bathrooms suck and it is time for them to go...

Quoting CALPSAFltSkeds (Reply 8):
E145 -53 to total 192 YE 2015
E135 -9 fleet removed

Another good riddens. UA inherited a lot of good things from CO... but an abundance of these E145s was NOT one of them...

Quoting CALPSAFltSkeds (Reply 8):
E175 +49 to total of 82 (NOTE: I show 37 in service in 2014 vs. 33 shown on Fleet Plan - if so then +45 in 2015)

Great news, my favorite single-aisle plane to fly in! Looking forward to the day that the E170/175s outnumber the E135/145s...

Congrats to UA!
 
United1
Posts: 3911
Joined: Wed Oct 08, 2003 9:21 am

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 10:15 pm

Quoting United787 (Reply 20):
Good riddens... I know A-netters love the 757, as do I, but they are old and dated, bathrooms suck and it is time for them to go...

...but the paisely wallpaper in the loos is iconic  
Quoting COSPN (Reply 15):
Or even worse write Huge checks to your competition (DGS/ DL) and (Envoy/ AA) ?? I can't imagine Coke mailing a $400,000 dollar check to Pepsi every week to pay for drivers to deliver Coke products .

It's fairly common for airlines to handle eachothers aircraft at outstations....UA handles B6 in a few stations IIRC.
I know the voices in my head aren't real but sometimes their ideas are just awesome!!!
 
strfyr51
Posts: 4261
Joined: Tue Apr 10, 2012 5:04 pm

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 10:23 pm

Quoting UA444 (Reply 18):
Quoting COSPN (Reply 15):So why fire 2200 employees and give 28 stations to unqualified vendors like simplicity ?? Or even worse write Huge checks to your competition (DGS/ DL) and (Envoy/ AA) ?? I can't imagine Coke mailing a $400,000 dollar check to Pepsi every week to pay for drivers to deliver Coke products .

Some things just don't make sense .

Yep. These profits are a hallow victory. And its' more than 28 stations, there were 25 or so that were already cut.

*******************************************************************************************************************************************
I'd really like to feel sorry for the IAM members that are getting CUT but they Voted that POS contract in Just to get the $10K
Bonus money. they voted themselves out of a job! But the Senior Guys who Don't Want to Leave??
They'll Bump into any station they can hold and some OTHER poor Schmuck will be out on the Street! or in Chicago ,Denver, Houstom or wherever the Junior man is..
 
seat38a
Posts: 286
Joined: Wed Nov 20, 2013 2:29 am

RE: UA Reports 4th Qtr And Full Year Profit

Thu Jan 22, 2015 11:53 pm

In January of 2014, I flew United or the first time MSY -> LAX. I braced for the worst based on all the negative reviews that I have read over the years regarding United. My experience with them was the complete opposite. The aircraft was clean, the flight attendant nice / pleasant and YES she was an older lady. Also, the flight was on time to depart and arrive. What more can one expect?
 
User avatar
lightsaber
Moderator
Posts: 18815
Joined: Wed Jan 19, 2005 10:55 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 1:47 am

This is good, but not great news. Hopefully UA does very well in 2015.

Quoting CALPSAFltSkeds (Reply 8):

UA to add/remove following aircraft to fleet in 2015

Fascinating. Thank you. That concise detail made this thread worth reading.

Quoting CALPSAFltSkeds (Reply 8):
752 -13 to 81 total YE15
Quoting CALPSAFltSkeds (Reply 8):
739 +23 to 140 YE15

I know the 757 is a favorite, but it is time to let them fade out. UA is wisely replacing them with 739ERs.

Quoting United787 (Reply 20):
Great news, my favorite single-aisle plane to fly in! Looking forward to the day that the E170/175s outnumber the E135/145s...

Ditto. I really liked the E135s/E145 back in 2000... But my employer paid the over $1k fare! But due to the pressure on RASM, it is time. The E175s are an excellent choice. I do hope to see MRJs in UAX's fleet one day.

Lightsaber
IM messages to mods on warnings and bans will be ignored and nasty ones will result in a ban.
 
tommy767
Posts: 4658
Joined: Sat Aug 09, 2003 12:18 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 2:30 am

Quoting United787 (Reply 20):
Good riddens... I know A-netters love the 757, as do I, but they are old and dated, bathrooms suck and it is time for them to go...

I embrace them. Looking forward to having them on a LAX-IAH-ATL-IAH-LAX business trip next week (for the IAH-LAX-IAH portions.) I'm forced to fly UA since DL is overpriced. Let's hope they have their act together.
"KEEP CLIMBING" -- DELTA
 
toxtethogrady
Posts: 1861
Joined: Sat Dec 23, 2000 12:33 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 3:42 am

Quoting EaglePower83 (Reply 3):
You're still a miserable mess to fly.

My FB is buzzing with friends' quotes to that effect.
 
toxtethogrady
Posts: 1861
Joined: Sat Dec 23, 2000 12:33 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 3:44 am

Quoting Miami (Reply 2):
-In 2014, United returned approximately $320 million to shareholders as part of its previously announced $1 billion share buyback program. In addition, throughout the year, United spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares of UAL common stock.

That is such a waste of corporate resources simply to juice the stock price. They could retire debt early, shore up their pensions, buy some aircraft...
 
toxtethogrady
Posts: 1861
Joined: Sat Dec 23, 2000 12:33 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 3:47 am

Quoting RDH3E (Reply 12):
Having too much cash on hand is unhealthy for the company as it lowers average return on investment.

So said a lot of companies that ended up in bankruptcy court. I thought the '80s were long gone.
 
29erUSA187
Posts: 1277
Joined: Mon Apr 14, 2014 11:34 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 3:49 am

Quoting Miami (Reply 2):
which will be distributed on Feb. 13

Just in time for Valentines Day!

Quoting EaglePower83 (Reply 3):
Congrats UA.
You're still a miserable mess to fly.

I have flown on United a lot this past year, and I hate their old product (A320, Domestic 752. (but its a 757 so i don't care))

Their new product on the new 738's/739's however, is amazing. The sky interior is nice, and the new bins make it feel super spacious. I think leg room may have increased too.
 
T5towbar
Posts: 458
Joined: Fri Feb 27, 2009 2:06 am

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 6:26 am

Quoting RDH3E (Reply 12):
Having too much cash on hand is unhealthy for the company as it lowers average return on investment.

I heard the same thing about having too much cash on hand. That seems weird to a layman, but they also say that it also draws in the "activist investors" as well. Don't know how true that one is as well. I always thought in this arena, it is best to have as much money on hand as possible, as this business is very cyclical.
A comment from an Ex CON: Work Hard.....Fly Standby!
 
charlienorth
Posts: 1069
Joined: Sat Jun 10, 2006 6:24 am

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 7:21 am

Quoting T5towbar (Reply 29):
I heard the same thing about having too much cash on hand. That seems weird to a layman, but they also say that it also draws in the "activist investors" as well. Don't know how true that one is as well. I always thought in this arena, it is best to have as much money on hand as possible, as this business is very cyclical.

In our personal lives it's a good thing, for corporations it invites the likes of Carl Ichan who only wants to squeeze every last dime out of a company.
Work hard fly right..don't understand it
 
Max Q
Posts: 7993
Joined: Wed May 09, 2001 12:40 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 8:25 am

Quoting RDH3E (Reply 12):
Having too much cash on hand is unhealthy for the company

Riight, see how that mentality holds up during a prolonged downturn.
The best contribution to safety is a competent Pilot.


GGg
 
strfyr51
Posts: 4261
Joined: Tue Apr 10, 2012 5:04 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 11:09 am

what they need to do is maintain Capacity discipline work to increase Ancillary revenues because the $200M was a good news story which I frankly thought was a load of crap when I first head them say it in the Go Forward Meetings
I'm a Believer NOW!
 
N766UA
Posts: 8262
Joined: Thu Jul 29, 1999 3:50 am

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 1:49 pm

Quoting xms3200 (Reply 21):

You say that like it's not an entirely valid reason to be upset with them.
 
Rdh3e
Posts: 3587
Joined: Wed Mar 30, 2011 2:09 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 3:27 pm

Quoting toxtethogrady (Reply 27):
So said a lot of companies that ended up in bankruptcy court. I thought the '80s were long gone.
Quoting Max Q (Reply 31):
Riight, see how that mentality holds up during a prolonged downturn.

I know you guys are all if I would put it generically in the "anti-management" camp, but c'mon. Having too much cash is bad for shareholders, it attracts the Carl Icah types you all despise, and it's money that can't be used to invest in the product, or the people.

So you guys are kind of in a contradictory spot here. You're arguing (in other threads) that UA should improve the product, pay people more, AND also not spend / invest those dollars in anything.

You cannot have your cake and eat it too.

Quoting charlienorth (Reply 30):
In our personal lives it's a good thing, for corporations it invites the likes of Carl Ichan who only wants to squeeze every last dime out of a company.

You don't want a lot of cash in your personal life, that means you're not investing it and thus not getting the wonderful benefit of compound interest.

Put this way. You and I each had 20 bucks in 2000. You decided to put yours under the mattress (like those above have suggested UA should do), I put mine in an investment with 5% compounding interest.

Today, you would have $20, but adjusted for inflation, that $20 is worth only $14.50 in 2000 dollars.
My $20 would be $28.80 in 2000 dollars.

Sitting on cash not only costs you the opportunity cost of not investing, but over time, the value of your money becomes less due to inflation meaning you have a negative return on investment by holding cash.

Same is true for companies and is the most basic example of why holding lots of cash, both as a company and an individual for long periods of time is a huge mistake.

[Edited 2015-01-23 07:29:50]
 
User avatar
yeogeo
Posts: 1343
Joined: Sun Jul 26, 2009 2:47 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 3:36 pm

Quoting seat38a (Reply 22):
I braced for the worst based on all the negative reviews that I have read over the years regarding United. My experience with them was the complete opposite.

There are few things on A-net as enduring as a good old UA-bashing.

yeo
still maintaining hygge
 
toxtethogrady
Posts: 1861
Joined: Sat Dec 23, 2000 12:33 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 8:56 pm

Quoting MSPNWA (Reply 42):
You need to keep your cash "working" for you.

Any airline that is shrinking the business is not keeping the cash working. After another year of "capacity discipline", United is now the No. 3 airline in the country - behind AA and DL. Now what?
 
a380787
Posts: 4573
Joined: Tue Jul 09, 2013 4:38 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 9:00 pm

Quoting toxtethogrady (Reply 46):

Any airline that is shrinking the business is not keeping the cash working. After another year of "capacity discipline", United is now the No. 3 airline in the country - behind AA and DL. Now what?

UA never crossed over DL even at the peak of the merger. But for a passenger viewpoint, it's most useful because they fly to the most destinations, with the largest international network (destinations, seats, ASMs), and most number of partners.
 
United1
Posts: 3911
Joined: Wed Oct 08, 2003 9:21 am

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 9:09 pm

Quoting toxtethogrady (Reply 46):
Quoting MSPNWA (Reply 42):
You need to keep your cash "working" for you.

Any airline that is shrinking the business is not keeping the cash working. After another year of "capacity discipline", United is now the No. 3 airline in the country - behind AA and DL. Now what?

UA actualy grew mainline (and overal) last year...the only part of UA that contracted was UAX. Also for the record UA actualy flew more ASMs and RSMs last year than DL...

ASMs
UA 246021
DL 239676

RSMs
UA 205559
DL 202925
I know the voices in my head aren't real but sometimes their ideas are just awesome!!!
 
Rdh3e
Posts: 3587
Joined: Wed Mar 30, 2011 2:09 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 9:30 pm

Quoting tommy767 (Reply 49):
Their ONLY advantage was short runways. And in the UA network that means really only DCA and Honduras.

And EGE, and JAC etc. There are more examples they just escape me at the moment. With the 752 going away the 73G will have to do more and more of those flights.
 
United1
Posts: 3911
Joined: Wed Oct 08, 2003 9:21 am

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 9:43 pm

Quoting RDH3E (Reply 50):

Quoting tommy767 (Reply 49):
Their ONLY advantage was short runways. And in the UA network that means really only DCA and Honduras.

And EGE, and JAC etc. There are more examples they just escape me at the moment. With the 752 going away the 73G will have to do more and more of those flights.

...SNA as well as a few of the airports in Micronesia.
I know the voices in my head aren't real but sometimes their ideas are just awesome!!!
 
tommy767
Posts: 4658
Joined: Sat Aug 09, 2003 12:18 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 9:44 pm

Quoting United1 (Reply 51):

Wish they'd dump the 'Gs' and keep the '-2s'
"KEEP CLIMBING" -- DELTA
 
UA444
Posts: 2792
Joined: Sun Mar 09, 2014 7:03 am

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 10:21 pm

Easily the worst is the 739. The 73G is fun to ride in due to the take off performance. It just has fallen out of favor economics wise for most carriers.

Even most of the pilots I've talked to despise the 739, especially compared to the 757s they were kicked out of.
 
ORDFlyer99
Posts: 49
Joined: Thu Nov 13, 2014 6:27 pm

RE: UA Reports 4th Qtr And Full Year Profit

Fri Jan 23, 2015 11:15 pm

I listened to the earnings call, and the next time I hear "capacity dicipline" from management I'm going to lose it. It makes total sense in respect to throwing capacity around for competitive purposes, but aren't they just bleeding revenue because their costs are so high amd they attract less flyers than others so they compensate by offering less capacity to have high RASMS to make investors happy? If they had a world class product, I bet we wouldn't hear about capacity discipline as much.

Why on earth are they issuing share repurchase programs? They have plenty of debt to pay, and lots of upgrades and potential expansion opportunnities that this money should be used for to generate greater returns in the long term.

Nevertheless, congrats to UA and employees on a turn around year.
 
MSPNWA
Posts: 3637
Joined: Thu Apr 23, 2009 2:48 am

RE: UA Reports 4th Qtr And Full Year Profit

Sat Jan 24, 2015 5:14 am

Quoting ORDFlyer99 (Reply 58):
I listened to the earnings call, and the next time I hear "capacity dicipline" from management I'm going to lose it. It makes total sense in respect to throwing capacity around for competitive purposes, but aren't they just bleeding revenue because their costs are so high amd they attract less flyers than others so they compensate by offering less capacity to have high RASMS to make investors happy? If they had a world class product, I bet we wouldn't hear about capacity discipline as much.

I think all U.S. airlines are making a big mistake by not significantly increasing capacity lately, but it's not for those reasons. I just believe they're leaving money on the table to better appeal in the investor war.

Quoting ORDFlyer99 (Reply 58):
Why on earth are they issuing share repurchase programs? They have plenty of debt to pay, and lots of upgrades and potential expansion opportunnities that this money should be used for to generate greater returns in the long term.

There's reasons why you would repurchase shares. Sometimes it's the best way to repay your investors, and you want to keep them happy to raise the capital you need. I don't like it that the airlines have to compete more on Wall Street than the runway these days, but it is what it is now. Just because you have debt doesn't mean you should pay it off first. Lately it's been a good time to use new debt. Rates are low. If you've retired higher rate debt, it makes sense to hold off on using all your cash to pay it off.
 
User avatar
Boeing778X
Posts: 3268
Joined: Sun Nov 17, 2013 7:55 pm

RE: UA Reports 4th Qtr And Full Year Profit

Sat Jan 24, 2015 5:35 am

Quoting United787 (Reply 18):
Another good riddens. UA inherited a lot of good things from CO... but an abundance of these E145s was NOT one of them...

I think the -145XRs are planes that should be held onto for the time being. The -145LRs and -135s are menaces otherwise.

Quoting CALPSAFltSkeds (Reply 6):
744 -2 to 21 total YE15 (heavy maint. checks due)
Quoting CALPSAFltSkeds (Reply 6):
773 purchase not confirmed

Should UA confirm that 77W order, that 744 number could be reduced to 10 or less by the end of 2016, with full retirement taking effect when the A350-1000s start arriving in 2018, if they're not gone by then.

Quoting CALPSAFltSkeds (Reply 6):
739 +23 to 140 YE15

UA should complete their entire 737-900ER order by early next year by the sound of it. I take it this includes the standard 737-900.

By the end of 2015, that will be 12 737-900s and 128 737-900ERs, with 7 in 2015. This will conclude 737NG deliveries at UA/CO. The first 737 MAX should arrive in 2018.
United Airlines: $#!ttin' On Everyone Since 1931

Popular Searches On Airliners.net

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

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

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

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

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

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

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos