Newsstand - Most U.S. airlines expected to report quarterly losses

U.S. airlines are expected to report yet another quarter with $1 billion-plus losses when they talk to investors beginning this week about their results for fourth-quarter 2008.

But, like the mountain climber who broke 207 of his 208 bones, the carriers can always say it could have been worse.

The precipitous fall in jet fuel prices in late 2008 turned what could have been a horrendous quarter into merely a very painful one.
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The consensus among analysts is that UAL will report the largest loss of any U.S. airline – about $4.28 a share, or more than $540 million. Fort Worth-based AMR is expected to post a 71-cent per-share loss, or about $190 million.

Dallas-based Southwest Airlines Co., which releases results Thursday, is the only big U.S. carrier expected to post a profit – 5 cents a share, or about $37 million.
http://www.dallasnews.com/sharedcontent/dws/bus/industries/airlines/stories/011909dnbusairearns.4080705.html

Wow-airlines losing money. This is news how? ;) I guess it's newsworthy that they're not bleeding themselves dry...

Wow-airlines losing money. This is news how? ;) I guess it's newsworthy that they're not bleeding themselves dry...

News is the plural of New, and it is a new quarterly report. Besides, Tom911 considers it newsworthy, and so it must be ;).

That $540 million projected UA loss caught my attention. Can't imagine they can sustain losses of that size for too many more quarters. The one thing missing from the article, and it will probably come out this week when UA releases the numbers, is how much of that is due to fuel hedging losses. At least it's an improvement from their 3rd quarter loss of $779 million.

Perhaps it's a precursor to the airlines asking for some bailout money.

How long are those odds? Could any of these airlines make a compelling 'too big to fail' argument - either to get antitrust immunity to allow an anticompetitive merger - or ask for some kind of bailout/nationalisation?

How's the outlook for the USA airlines if:
(a) in current conditions without the mergers, or
(b) they are in situation 'a' and oil prices return toward $80-$100/barrel?

In addition to the bad economy, the airlines should be demanding the destruction of the TSA. So many people have opted to drive/stay home than put up with the hassles of flying. This is especially true on formerly extremely profitable routes of short duration.

I sincerely hope there will be no bailouts for the airlines or for anyone else. Stimulation for business begins at home.

Dallas-based Southwest Airlines Co., which releases results Thursday, is the only big U.S. carrier expected to post a profit – 5 cents a share, or about $37 million.
http://www.dallasnews.com/sharedcontent/dws/bus/industries/airlines/stories/011909dnbusairearns.4080705.html

NOT SO! 56 MILLION LOSS for the 4th Quarter!

In addition to the bad economy, the airlines should be demanding the destruction of the TSA. So many people have opted to drive/stay home than put up with the hassles of flying. This is especially true on formerly extremely profitable routes of short duration.


Another biggie is the elimination of the TWOV program. Not only are there plenty of people ineligible altogether to fly through the US to get elsewhere, but many eligible that won't even bother because of all the hassles. I have heard enough unsolicited comments from people on planes, as well as people in immigration lines.

To examine the logic of Tom911's OP headline (just as a memory exercise):

If most US airlines are expected to report a quarterly loss:
- Are the rest all making losses but not reporting quarterly, if at all?
- Are any US airlines not making a loss this quarter
- Which US airlines have not reported a loss yet?
- Which US airlines might report a profit?

Sorry for being an accountant for a moment - which airlines are operationally not making a loss? :)

Just asking as it would be interesting to know if any airline in the US is 'profitable' on the basis of its airline operations. I guess it's possible to include one-off gains to make a loss-making airline profitable but I'm wondering about the profitability of operating at *current* fuel prices.

So if it's possible to exclude hedging losses or gains from selling assets/FFP programs etc, is there an airline making a profit at current USD$40-something a barrel oil costs?

What I'd like to know is if the airlines have enough cash to hedge fuel at today's prices. Jet fuel must be a relative bargain right now. I know I wish I could buy BP gift cards in gallons rather than dollars!!!

What I'd like to know is if the airlines have enough cash to hedge fuel at today's prices. Jet fuel must be a relative bargain right now. I know I wish I could buy BP gift cards in gallons rather than dollars!!!

That would put a lot of major petroleum retailers out of business. :D
Yes, let's buy options or some kind of hedge derivative...

Wasn't energy derivatives trading (taken to the max) the 'business' of Enron?

I am going to make the bold prediction that there will be at least one 'airline' in the US which will report an operating profit this quarter. It would likely be in a tiny niche, but happen to have a lot of business right now.

It may be doing booming business transporting people to a very popular US city.

Could you think of such an airline?