US Airways Dividend Miles (Pre-FlightFund Merger) - US Airways Group Reports Loss

US Airways Group, Inc. reported today that it had a net loss of $269 million, or $4.02 per diluted common share, for the full year 2000.
http://biz.yahoo.com/prnews/010117/va_us_airw.html

http://biz.yahoo.com/prnews/010117/va_us_airw_2.html

That's one way to convince DOJ as to why the sale needs to go through. Save those jobs. I don't suppose it ever occurred to those captains of industry running the place to hedge their fuel costs like Continental and Southwest, for example. On the other hand, in the perverse logic of modern American business, you can make more money wrecking your company. Wonder where all those change fees went?

While I'm sure it makes sense to match AirTran on non-stop flights, USAirways matched them on every route, including onces where you have to connect on AirTran. It's painfully obvious they are doing everything in their power to lose money and prove they need United's "White Knight".

You may be right! http://www.flyertalk.com/forum/smile.gif

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The Arlington, Va.-based US Airways lost $101 million in the fourth quarter, hurt by rising fuel costs and increased competition within the industry.
http://biz.yahoo.com/apf/010117/earns_airl_2.html

Originally posted by deelmakur:
I don't suppose it ever occurred to those captains of industry running the place to hedge their fuel costs like Continental and Southwest, for example. On the other hand, in the perverse logic of modern American business, you can make more money wrecking your company. Wonder where all those change fees went?

You can't hedge your fuel costs indefinitely, I don't even think Delta (who had the highest percentage of future fuel usage hedged when prices started going up) is using hedged fuel anymore, because once the prices go up, you can't hedge economically. Of course, with fuel prices now stabilized/declining, it's a different ball game now anyway.

Also, Southwest does not hedge any of it's fuel prices.

Southwest's 10Q, issued this past November, and covering operations for the first 9 months of 2000, makes specific reference to fuel hedging activities.

Beckles-

Southwest is expected to report today that it earned about $140 million, or about 28 cents a share, helped by hedging-related fuel savings of between $60 million and $65 million...
http://www.flyertalk.com/forum/Forum44/HTML/000072.html

US Airways reported today that revenue passenger miles for January 2001 were up 23.7 percent compared to January 2000, while available seat miles for the month increased 20.4 percent. The passenger load factor for the month was 60.3 percent, an increase of 1.6 percentage points compared to January 2000.

The four wholly owned subsidiaries of US Airways Group, Inc. -- Allegheny Airlines, Inc., Piedmont Airlines, Inc., Potomac Airlines, Inc., and PSA Airlines, Inc., -- reported that revenue passenger miles for January were up 3.1 percent compared to January 2000, while available seat miles for the month were up 5.9 percent. The passenger load factor for the month was 45.5 percent, a decrease of 1.3 percentage points compared to January 2000.

http://biz.yahoo.com/prnews/010205/va_us_airw.html

Financially troubled US Airways Group Inc. announced Thursday that investors should expect even larger losses in its first quarter than Wall Street expects. Its stock price tumbled 3 percent...

...On Thursday morning the company issued a statement saying earnings would be ``well below the current First Call consensus estimate.'' Exactly how much worse is unclear. Company spokesman Richard Weintraub said the company had no comment beyond its statement...

...A major factor in the decline is a weakness in business travel, an issue US Airways President and CEO Rakesh Gangwal had warned analysts about back in January, citing the softening overall economy.

http://www.nytimes.com/aponline/business/AP-US-Airways-Outlook.html

pitflyer, I didn't know USAirways ever matched AirTran. The 30-yr-exp gate agent at MYR had mentioned that to me as I begged him for a fare from MYR to ATL last year that didn't bankrupt our company. I pointed out AirTran had some $49 specials, and while I didn't expect them to go THAT low, at the time the walkup for MYR-ATL was like $935 roundtrip. He told me "We've NEVER matched AirTran, (but he did manage to finagle something and get me a 14NR that day...)

Just this week I had to take AirTran from ATL to MYR and their full business class fare was like $380. Best USairways could do was over $500 and that was a week in advance! Needless to say, I wasn't happy because that route's an easy 4 segments for me. There's the reverse case thatn what you were talking about - an AirTran Nonstop, and a USAir connect.

If Wolf & folks at USAir are discounting things to intentionally lose money, they sure missed this market. Maybe it's the **** golfers.

Also, I've noticed there are no 7-day advance fares from the West Coast to here, just 14s. Tried to do SEA-MYR, but couldn't get a 7-day fare - they told me they didn't exist in that market. But Delta does, much to my dismay, as our client is dictating airfares and airlines based 100% on lowest cost. Again, if Wolf & Co. are trying to discount themselves into the hole, they're doing it somewhat selectively, IMHO.

If you're trying to finesse a tough deal by DOJ, and you see AA/TWA moving nicely because it "rescues jobs in jeopardy", the "failing business" argument begins to look useful. The difference is that US has a significant cash flow, and by extension a lot of money in the bank.

How many people does usair fly per year?
250 Million? Maybe 125 Million?
Add 2 Bux to a Ticket, and STAY US Airways!!!

COME ON, For $2 per time I fly I would pay to Keep Us Airways ALive

Add $2 per flight?

Mr. Gangwel would want about $.50 of that
Mr. Wolf would take his $.75
The pilots would demand $.35
The Flight attendants $.25
Mechanics would want at least $.17

That leaves a loss of $.02 per passenger
At least that's my $.02 on the matter.


Seriously, it seams that US will find a way to lose $$ these days. It certainly puts more pressure on the govt to approve the merger to save the "failing" company.

Originally posted by Dukie:
How many people does usair fly per year?
250 Million? Maybe 125 Million?


According to the January 4 press release on the web page they're flying about 5 million people per month or about 60 million a year.

US Airways stock is currently selling at about $28/sh, near its 52-week low - and less than half the $60 UA agreed to pay! http://www.flyertalk.com/forum/eek.gif

Originally posted by TomBascom:
According to the January 4 press release on the web page they're flying about 5 million people per month or about 60 million a year.



At the rate they're adding seats to the fleet, they're heading towards 70 million.