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Old Apr 10, 13, 1:41 am   #1
 
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UA reports highest increase in revenue per passenger mile flown in March

United Airlines reported that its passenger revenue per passenger mile flown, or unit revenues, increased 6.5 percent to 7.5 percent in March – by far the best performance reported by a U.S. airline

Here’s what its competitors have reported for their March unit revenues.

Delta Air Lines Up 2%
American Airlines Up 0.3%
Southwest Airlines Flat
US Airways Flat
Allegiant Air Down 0.7% to 1.1%


http://aviationblog.dallasnews.com/2...d-growth.html/
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Old Apr 10, 13, 2:23 am   #2
 
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You are, perhaps forgetting, that perhaps the reason the PRASM rose so much is because beginning March 03, 2012, things went to Heck for UA after switching to SHARES. I'd fully expect (and so should the shareholders) to see PRASM rise year-over-year. Remember, UA reduced schedules in 2012 due to the switch, and things still fell apart.
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Old Apr 10, 13, 2:40 am   #3
 
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I'm not forgetting anything - direct quotes from the article.
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Old Apr 10, 13, 5:40 am   #4
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I suppose you could also say "UA reports a dramatic increase in on-time and completion rates vs. last March!"

A pointless comparison
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Old Apr 10, 13, 6:03 am   #5
 
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So, you don't think this is positive news?

What will it take for you to acknowledge a positive trend?

I do agree that the baseline is low, but then 1 year later we should expect these type of dramatic improvements if UA is trending in the right direction, correct?
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Old Apr 10, 13, 6:37 am   #6
 
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Originally Posted by LarkSFO View Post
So, you don't think this is positive news?

What will it take for you to acknowledge a positive trend?

I do agree that the baseline is low, but then 1 year later we should expect these type of dramatic improvements if UA is trending in the right direction, correct?
While I take it as positive news, they've been decreasing capacity for the past year so I'd be shocked if they didn't increase in PRASM since last March.
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Old Apr 10, 13, 6:51 am   #7
 
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Capacity cuts have been so large that this really means nothing
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Old Apr 10, 13, 7:12 am   #8
 
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Originally Posted by edcho View Post
While I take it as positive news, they've been decreasing capacity for the past year so I'd be shocked if they didn't increase in PRASM since last March.
Caveats and qualifications are everywhere...

But, something has to be going right here, correct?

Quote:
Originally Posted by demkr View Post
Capacity cuts have been so large that this really means nothing
Nothing? Nothing at all?

Every little nit and pick that is negative quickly becomes a 50 post thread here on FT deriding the airline.

But, a very large increase in passenger revenue per mile means nothing?

I am not trying to claim that this is some watershed event and UA is now out of the woods. There is a lot of work still to be done.

But characterizing this news as 'nothing' seems misguided to me.
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Old Apr 10, 13, 7:15 am   #9
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Originally Posted by LarkSFO View Post
Caveats and qualifications are everywhere...

But, something has to be going right here, correct?
You realize March '12 is probably going to be the best month to comp against in a decade, right?

I think the Q1 results will be a bit more telling, and not in a good way.
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Old Apr 10, 13, 7:19 am   #10
 
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Capacity cuts have been so large that this really means nothing
+1. At my home airport AUS, several of the AUS-EWR nonstops will be flown on E170s going forward and much of the AUS-IAH flights which were all 737 service on pmCO for the last decade are now on E145/E145/CRJ700 (and even some Q400). It's getting hard to fly UA out of AUS without flying a significant portion of a trip on regionals. Ludicrous. Capacity is way down.

In the meantime, AA zeroes out practically every flight in and out of AUS every time I fly (usually Tue and Thu but even this coming Sat). All on MD80s with far more service frequencies. UA is quite literally handing the AUS market to AA and SWA.
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Old Apr 10, 13, 7:25 am   #11
 
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Originally Posted by UA-NYC View Post
You realize March '12 is probably going to be the best month to comp against in a decade, right?

I think the Q1 results will be a bit more telling, and not in a good way.
Fair enough... and Q2, and Q3, and this entire fiscal year and next fiscal year, etc. All will be telling.

Still, characterizing this uptick as 'no news' is just a little hypocritical in my opinion.
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Old Apr 10, 13, 7:59 am   #12
 
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Fair enough... and Q2, and Q3, and this entire fiscal year and next fiscal year, etc. All will be telling.

Still, characterizing this uptick as 'no news' is just a little hypocritical in my opinion.
No less hypocrytical than UA's attempt to use a year over year comparison with one of the worst months in airline history as fodder for creating spin that tries to make it look like they have done a great job.
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Old Apr 10, 13, 8:05 am   #13
 
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Quote:
Originally Posted by LarkSFO View Post
So, you don't think this is positive news?

What will it take for you to acknowledge a positive trend?

I do agree that the baseline is low, but then 1 year later we should expect these type of dramatic improvements if UA is trending in the right direction, correct?
Sure it's a positive trend, but last march was so bad that if they didn't show a positive trend from then it would be an epic failure. The point is that you would fully expect a dramatic increase, any mediocre results in March would be a dramatic increase from last March. The comparison with other airlines is meaningless because they did not implode last march.
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Old Apr 10, 13, 8:07 am   #14
 
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Originally Posted by mitchmu View Post
No less hypocrytical than UA's attempt to use a year over year comparison with one of the worst months in airline history as fodder for creating spin that tries to make it look like they have done a great job.
So, are you saying that by achieving this large increase, UA management has done a bad job?

Now we are really entering some parallel reality...

Quote:
Originally Posted by Boghopper View Post
Sure it's a positive trend, but last march was so bad that if they didn't show a positive trend from then it would be an epic failure. The point is that you would fully expect a dramatic increase, any mediocre results in March would be a dramatic increase from last March. The comparison with other airlines is meaningless because they did not implode last march.
So, in your opinion, these results fall somewhere between "epic failure' and "good job"?
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Old Apr 10, 13, 8:31 am   #15
 
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Of course they've cut some capacity. Over-capacity has been the airlines' biggest problem for years. If there's less capacity, they can charge higher fares. Are the eternal UA bashers saying average fares have not gone up? Doesn't this result in a higher PRASM? Are you criticizing UA for trying to run the airline more efficiently? Do you want them to run emptier planes so you can get your free upgrades or nobody in the middle seat? You have to admit that an airline is a business. It's primary purpose is to make money and unfortunately traveller's wants aren't always highest priority. I know that I benefitted when airlines weren't making money - more upgrades, cheaper fares, less crowded coach sections. The fact that there are less of these suggests the airlines are finally getting their business stuff together.
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