AA pulls off a financial miracle in September, 2012
Oct 8, 2012, 12:18 pm
#1
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AA pulls off a financial miracle in September, 2012
Despite the widely discussed operational difficulties in September, 2012, AA announced this morning that its unit revenue increased by an industry-leading 4.0% last month compared to Sept 2011. That bested the numbers already posted by UA, DL and US. Unit revenue at DL was up just a half a percent, at US it was flat year over year and at UA, it was down 3.3%. Had AA not encountered so many operational challenges, unit revenue would have increased by 4.4%:
http://www.thestreet.com/story/11730...o&cm_ven=YAHOO
http://www.reuters.com/article/2012/...anyNews&rpc=43
http://finance.yahoo.com/news/americ...152641223.html
http://finance.yahoo.com/news/amr-co...131500557.html
http://www.thestreet.com/story/11730...o&cm_ven=YAHOO
http://www.reuters.com/article/2012/...anyNews&rpc=43
http://finance.yahoo.com/news/americ...152641223.html
http://finance.yahoo.com/news/amr-co...131500557.html
Oct 8, 2012, 12:34 pm
#2
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Despite the widely discussed operational difficulties in September, 2012, AA announced this morning that its unit revenue increased by an industry-leading 4.0% last month compared to Sept 2011. That bested the numbers already posted by UA, DL and US. Unit revenue at DL was up just a half a percent, at US it was flat year over year and at UA, it was down 3.3%. Had AA not encountered so many operational challenges, unit revenue would have increased by 4.4%:
Oct 8, 2012, 12:35 pm
#3
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Exactly!
Oct 8, 2012, 12:36 pm
#4
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I wonder how much of this comes from the money AA have collected for flights that they didn't have to pay to fly due to cancellation....and haven't refunded yet 
Cheers.
Cheers.
Oct 8, 2012, 12:39 pm
#5
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You mean the persistent rumours of AA's imminent demise are greatly exaggerated? 
Another reminder that Flyertalk represents a miniscule fraction of AA's passengers and the Flyertalk crowd is probably not a representative sample; in September alone, AA boarded more than 8.2 million passengers.
Another reminder that Flyertalk represents a miniscule fraction of AA's passengers and the Flyertalk crowd is probably not a representative sample; in September alone, AA boarded more than 8.2 million passengers.
Oct 8, 2012, 12:41 pm
#6
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I do wonder the same thing - how much comes from increased revenue, how much from "savings" and float?
Oct 8, 2012, 12:46 pm
#7
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Oct 8, 2012, 12:52 pm
#8
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Of course, AMR could be choosing to follow the path of Enron, but SOX requirements have mitigated some of that risk, and I doubt Deloitte (I think they are the big four on the engagement) would like to turn into another Arthur Anderson.
Last edited by umaa83; Oct 8, 2012 at 1:02 pm
Oct 8, 2012, 12:55 pm
#9
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If they owe a refund to a customer, there would a liability recorded the instant (assuming most of the accounting is automated) a refund is due and that would then net against any revenue already collected from that customer.
Oct 8, 2012, 12:57 pm
#10
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Thanks all for the comments. I was being )mostly) facetious in what I wrote. The details about just why it wouldn't work out that way are very cool, though.
Cheers.
Cheers.
Oct 8, 2012, 1:03 pm
#11
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Oct 8, 2012, 1:13 pm
#12
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You mean the persistent rumours of AA's imminent demise are greatly exaggerated?
Another reminder that Flyertalk represents a miniscule fraction of AA's passengers and the Flyertalk crowd is probably not a representative sample; in September alone, AA boarded more than 8.2 million passengers.
Another reminder that Flyertalk represents a miniscule fraction of AA's passengers and the Flyertalk crowd is probably not a representative sample; in September alone, AA boarded more than 8.2 million passengers.
.
Oct 8, 2012, 1:21 pm
#13
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I'm more curious on how much the profit from said revenue increased...
Oct 8, 2012, 1:25 pm
#14
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I'm real curious how much of this newly added revenue is due to their status match offer to UA1K elites. I know it's not insignificant.
Oct 8, 2012, 1:27 pm
#15
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Given that only a small amount of the labor savings from the new contracts and the imposed terms on the pilots became effective on Sept 12 and that a lot more of the savings began on October 1, there likely won't be impressive profits for the month of September. In fact, for every group except the pilots, pay raises were effective on Sept 12, so labor costs will probably show a blip in September compared to the subsequent months.