Last edit by: mkr
UAL
earnings released: Thursday, July 24,2014 9:30 am CST/10:30 EST
If you missed the live webcast of the 2nd Q earnings conference call, it is now available for replay for a limited time and will later be archived.
A transcript is now available also.
Click this link for access to replay and transcript of call:
http://www.flyertalk.com/forum/23227909-post151.html
Current 2Q 2014 UAL guidance (4/24/14 investor update):
PRASM +1-3%
ASM "quarter, flat to +1%, full year +.5 to 1.5%"
CASM ex fuel, "quarter +1.25 to 2.25%, full year +1-2%"
Analyst guidance/actual 2Q 2013 results:
6/5/14 estimates:
1.86/share (using the 367M shares from last release $682M profit ex special items) [2q 2013 actual was $521M; $1.35/share ex specials; $469M GAAP]
Revenue 10.33B (3.3% growth) [2q 2013 was $10B]
Actual results:
- $789m GAAP Net income, $2.34/share. 7.6% margin
- $919m Net Income (excluding specials) or $1.04 per share. 8.9% margin
- $906m Operating Income (8.8% margin)
- $1.08B Operating Income excluding specials (10.4% margin)
- PRASM up 3.7%, yield up 3.0%; domestic yield +6.8%
- ASM -0.1%
- CASM-Ex fuel, profit sharing and special items down 0.2%
- Operating Revenue: $10.33B (up 3.3%); Passenger Revenue $8.98B( up3.6%)
- $1.5B in operating cash flow
Links to UA Press Releases / News Articles / etc.:
DAL
earnings released: Wednesday July 23 at 10 edt. Call link: https://event.on24.com/eventRegistra...epage=register
Actual results:
- $801m GAAP Net income, $0.94/diluted share. 7.5% margin
- $889m Net Income (excluding specials) or $1.04 per share. 8.4% margin
Delta's pre-tax income, ex special items was $1.4 billion.
- $1.58B Operating Income (14.9% margin)
- $1.61B Operating Income excluding specials (15.1% margin)
- PRASM up 5.7%, yield up 3.8%; domestic yield +7.4%
- ASM +3.2%
- CASM-Ex fuel, profit sharing and special items was FLAT
- Operating Revenue: $10.62B (up 9%); Passenger Revenue $9.27B ( up9%)
- Over $2.0B in operating cash flow and $1.5B in free cash, net debt $7.9B
3Q projections: Operating margin +15 to +17%, CASM +0 to 2%, "unit revenues" (I take to be PRASM - spin) +2-4% "driven by continued corporate and domestic strength, along with benefits from our revenue initiatives."
Links to DL Press Releases / News Articles / etc.:
http://news.delta.com/2014-07-23-Del...Quarter-Profit
AAL - earnings call: July 24, 2014 at 12:30 cdt
link to call: http://phx.corporate-ir.net/phoenix....estorrelations
Estimates/AAL guidance:
2Q PRASM +5-7% (updated estimate from 6/9/14 traffic release). YTD ASM +2.5%.
Actual results:
- $864m GAAP Net income
- $1.5B Net Income (excluding specials)
- $11.4B Revenue (+10.2%)
- Yeld +6.5% (17.34)
- PRASM up 5.9%, (14.57)
- ASM +3.1%
- CASM +3.9% (13.61)
earnings released: Thursday, July 24,2014 9:30 am CST/10:30 EST
If you missed the live webcast of the 2nd Q earnings conference call, it is now available for replay for a limited time and will later be archived.
A transcript is now available also.
Click this link for access to replay and transcript of call:
http://www.flyertalk.com/forum/23227909-post151.html
Current 2Q 2014 UAL guidance (4/24/14 investor update):
PRASM +1-3%
ASM "quarter, flat to +1%, full year +.5 to 1.5%"
CASM ex fuel, "quarter +1.25 to 2.25%, full year +1-2%"
Analyst guidance/actual 2Q 2013 results:
6/5/14 estimates:
1.86/share (using the 367M shares from last release $682M profit ex special items) [2q 2013 actual was $521M; $1.35/share ex specials; $469M GAAP]
Revenue 10.33B (3.3% growth) [2q 2013 was $10B]
Actual results:
- $789m GAAP Net income, $2.34/share. 7.6% margin
- $919m Net Income (excluding specials) or $1.04 per share. 8.9% margin
- $906m Operating Income (8.8% margin)
- $1.08B Operating Income excluding specials (10.4% margin)
- PRASM up 3.7%, yield up 3.0%; domestic yield +6.8%
- ASM -0.1%
- CASM-Ex fuel, profit sharing and special items down 0.2%
- Operating Revenue: $10.33B (up 3.3%); Passenger Revenue $8.98B( up3.6%)
- $1.5B in operating cash flow
Links to UA Press Releases / News Articles / etc.:
UA Deutsche Bank Presentation PDF
WSJ Article: United Continental: One Sick Bird - related FT thread on WSJ's One Sick Bird article.
May 2014 UA Traffic Reporting Discussion Thread
Q1 2014 Investor Conference Call FT Discussion Thread
United Continental Is Underestimating the Threat From Delta Air Lines @ The Motley Fool - related FT Discussion Thread
United Should Close Dulles Hub, Analyst Says, as He Cuts Rating - FT Discussion Thread
WSJ Article: United Continental: One Sick Bird - related FT thread on WSJ's One Sick Bird article.
May 2014 UA Traffic Reporting Discussion Thread
Q1 2014 Investor Conference Call FT Discussion Thread
United Continental Is Underestimating the Threat From Delta Air Lines @ The Motley Fool - related FT Discussion Thread
United Should Close Dulles Hub, Analyst Says, as He Cuts Rating - FT Discussion Thread
DAL
earnings released: Wednesday July 23 at 10 edt. Call link: https://event.on24.com/eventRegistra...epage=register
Actual results:
- $801m GAAP Net income, $0.94/diluted share. 7.5% margin
- $889m Net Income (excluding specials) or $1.04 per share. 8.4% margin
Delta's pre-tax income, ex special items was $1.4 billion.
- $1.58B Operating Income (14.9% margin)
- $1.61B Operating Income excluding specials (15.1% margin)
- PRASM up 5.7%, yield up 3.8%; domestic yield +7.4%
- ASM +3.2%
- CASM-Ex fuel, profit sharing and special items was FLAT
- Operating Revenue: $10.62B (up 9%); Passenger Revenue $9.27B ( up9%)
- Over $2.0B in operating cash flow and $1.5B in free cash, net debt $7.9B
3Q projections: Operating margin +15 to +17%, CASM +0 to 2%, "unit revenues" (I take to be PRASM - spin) +2-4% "driven by continued corporate and domestic strength, along with benefits from our revenue initiatives."
Links to DL Press Releases / News Articles / etc.:
http://news.delta.com/2014-07-23-Del...Quarter-Profit
AAL - earnings call: July 24, 2014 at 12:30 cdt
link to call: http://phx.corporate-ir.net/phoenix....estorrelations
Estimates/AAL guidance:
2Q PRASM +5-7% (updated estimate from 6/9/14 traffic release). YTD ASM +2.5%.
Actual results:
- $864m GAAP Net income
- $1.5B Net Income (excluding specials)
- $11.4B Revenue (+10.2%)
- Yeld +6.5% (17.34)
- PRASM up 5.9%, (14.57)
- ASM +3.1%
- CASM +3.9% (13.61)
UAL 2Q 2014 Results/Discussion/News → Results Announced July 24th, 2014 ←
#331
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Bay Area, CA
Programs: UA Plat 2MM; AS MVP Gold 75K
Posts: 35,067
This may just be me, but a bonus like that wouldn't go far. In my old job, my bonus was $500 for two months of working 60-80 hrs a week. The $500 pretax felt like a kick in the balls more than a bonus. It's like, gee thanks, we're worth $375 after tax to you guys (assuming 35% tax rate). Big whoop. I'd rather get nothing and be ignorant to the fact that the company didn't give an F. Major part of the reason I quit.
$200 is like an extra day of pay for most airline workers.
And if they worked 60-80 hours a week, they'd be bringing home a pretty penny in overtime on top of it.
Comparing salaried work rules and situations to that of hourly workers is not the same.
#332
Join Date: Feb 2006
Programs: UA, Starwood, Priority Club, Hertz, Starbucks Gold Card
Posts: 3,951
To be fair, WN also paid out profit sharing earlier this year, so this $200 bonus ($130 after taxes ) is gravy on top of that. I've received bonuses and profit sharing checks in the past and felt the similar way as you did, but from an overall perspective, the extra $130 is a generous gesture on WN's part knowing that employees are not going to change their feelings about their employer either way because of it.
#333
Join Date: May 2013
Posts: 3,361
They are actively out in the market, after quietly looking for some time. I haven't heard of anything in the works. Quality used aircraft are tough to come by right now.
#334
Suspended
Join Date: May 2010
Location: Just outside Big D, or many other places in big metal tubes
Programs: WN Rpd.Rwrds, AA, was longtime CO very top Elite tier, Overentitled UA Lifetime 1K (since 2012)
Posts: 1,334
I read the USA Today story reporting on 2nd Q earnings of several airlines.
It is understandable that UA states that it plans a 1B buyback of stock over the next three years. (If and to what extent, it will do this at varied times when the stock price is discounted.) This is a bone the UA board is throwing to the shareholders to keep them happy.
But Southwest has different approach. It had a record quarter of earnings. As a "thank you", it is giving each employee a $200 bonus. That may not seem like much, but it is very obvious to anyone who flies Southwest that its employees are very cohesive, enthusiastic, motivated workers. It really shows in customer service, which further motivates flyers to keep flying.
Contrast with UA with the reported bickering, poorer customer service, less-motivated employees, jobs outsourced, etc.
UA may have reported 2nd Q earnings, but at what cost? How much more could UA earnings grow with happy and motivated employees dealing in positive ways with customers?
http://www.usatoday.com/story/money/...ican/13060163/
It is understandable that UA states that it plans a 1B buyback of stock over the next three years. (If and to what extent, it will do this at varied times when the stock price is discounted.) This is a bone the UA board is throwing to the shareholders to keep them happy.
But Southwest has different approach. It had a record quarter of earnings. As a "thank you", it is giving each employee a $200 bonus. That may not seem like much, but it is very obvious to anyone who flies Southwest that its employees are very cohesive, enthusiastic, motivated workers. It really shows in customer service, which further motivates flyers to keep flying.
Contrast with UA with the reported bickering, poorer customer service, less-motivated employees, jobs outsourced, etc.
UA may have reported 2nd Q earnings, but at what cost? How much more could UA earnings grow with happy and motivated employees dealing in positive ways with customers?
http://www.usatoday.com/story/money/...ican/13060163/
UA has profit sharing too. I can't find it at the moment, but I'm sure someone has handy the picture of Jeff on a cart in O'Hare with body guards carrying around money bags filled with $100 bills with Jeff's picture on them. I think they also handed out Payday candy bars.....
That said, culturally, WN and UA are miles apart. UA may say they want a cohesive culture, but then they pin employee groups against each other and antagonize them in other ways (e.g., anti-union propaganda in break rooms and on logins before a vote, RJ flying between hubs before they got it worked out; forced relocations for the FAs, etc.).
This practice of antagonizing employees even dates back to the CO days -- there was one year where workgroups were working out concessions, and they announced that they will only give profit-sharing to those who had worked out a new agreement. The FA agreement did not happen in time, and they did not give profit sharing to FAs. We can debate whether or not that was fair, but they still antagonized a subset of employees.
So while UA goes through similar motions for profit sharing, their actions don't align with that once-every-so-often give-away.
This practice of antagonizing employees even dates back to the CO days -- there was one year where workgroups were working out concessions, and they announced that they will only give profit-sharing to those who had worked out a new agreement. The FA agreement did not happen in time, and they did not give profit sharing to FAs. We can debate whether or not that was fair, but they still antagonized a subset of employees.
So while UA goes through similar motions for profit sharing, their actions don't align with that once-every-so-often give-away.
#335
Join Date: Apr 2011
Programs: WN, AA, UA, DL
Posts: 1,313
I believe the $200 bonus is for hitting the ROIC goal of 15%. UA isn't exactly hitting goals like that yet, so I agree in expecting the same from them is shortsighted. Shoot, DL is hitting all kinds of good benchmarks, yet the employees aren't getting any bonuses that I'm aware of.
#336
Join Date: Sep 2013
Location: Desert Southwest.
Programs: UA: Premier Silver
Posts: 38
For the used aircraft market it's slim pickings, unless they go with 747-800s found two on listings.
http://www.controller.com/list/list....ref=0&Thumbs=1
http://www.controller.com/list/list....ref=0&Thumbs=1
#337
Join Date: Aug 2013
Location: LAS HNL
Programs: DL DM, 5.7 MM, UA 3.1 MM, MARRIOTT PLATINUM, AVIS FIRST, Amex Black Card
Posts: 4,479
For the used aircraft market it's slim pickings, unless they go with 747-800s found two on listings.
http://www.controller.com/list/list....ref=0&Thumbs=1
http://www.controller.com/list/list....ref=0&Thumbs=1
Perhaps they could grab a few L-1011's and put winglets on them to save fuel. I bet you could get 500 people on those.
#338
Join Date: Sep 2013
Location: Desert Southwest.
Programs: UA: Premier Silver
Posts: 38
From your link: UA could pick up that 727-100 for $800,000.00. Throw in some slimeline seats and jam 180 people on board. Sounds like a great deal, since fuel is going to drop to $1.00 a gallon soon, very soon. Paint it in Retro UA colors and it would be the trip of a lifetime.
Perhaps they could grab a few L-1011's and put winglets on them to save fuel. I bet you could get 500 people on those.
Perhaps they could grab a few L-1011's and put winglets on them to save fuel. I bet you could get 500 people on those.
#339
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,164
Huh?
You've not read about the problems with baggage handlers doing massive sick leave calls - causing cancellations?
http://aviationblog.dallasnews.com/2...ere-sick.html/
http://www.news10.net/story/news/201...talks/7244545/
Or this:
"Put simply: Southwest now treats passengers like the lowest common denominator. It lectures, nags, and harasses them. It treats them like children. Southwests passion for allowing employees to be themselves has sparked an outbreak of unfunny, unhappy, and unhelpful flight attendants and processes that threaten to turn the airline that democratized air travel into a dictatorship."
http://www.austindaily.org/post/2506...with-southwest
You've not read about the problems with baggage handlers doing massive sick leave calls - causing cancellations?
http://aviationblog.dallasnews.com/2...ere-sick.html/
http://www.news10.net/story/news/201...talks/7244545/
Or this:
"Put simply: Southwest now treats passengers like the lowest common denominator. It lectures, nags, and harasses them. It treats them like children. Southwests passion for allowing employees to be themselves has sparked an outbreak of unfunny, unhappy, and unhelpful flight attendants and processes that threaten to turn the airline that democratized air travel into a dictatorship."
http://www.austindaily.org/post/2506...with-southwest
#340
FlyerTalk Evangelist
Join Date: Feb 2002
Location: San Francisco/Tel Aviv/YYZ
Programs: CO 1K-MM
Posts: 10,757
They don't really have many options for used aircraft.
I have a hard time believing they'll introduce a new type, or that they want a 73G-sized aircraft. Which leaves 738 ,739, 319 and 320s.
I don't think there are many 738/9's available. 319s and 320s *may* be, but for what they'd want, you'd be looking at quite old build aircraft.
DL has been very creative in what they've been up to in the used AC market. They haven't been going after the primary workhorses, the 737 and 320, but rather, the bin-ends, and putting them together.
Most airlines didn't even have the 717 on their radar. DL, with extensive experience with the MD80/90, was suited to add the '95 to their pack of mad dogs. WN, wanting consistency, didn't really want to keep their 'oddball' fleet, so they leased it to DL for cheap. What is UA going to do? knock up HA for their 18 717s? I don't think so.
I have a hard time believing they'll introduce a new type, or that they want a 73G-sized aircraft. Which leaves 738 ,739, 319 and 320s.
I don't think there are many 738/9's available. 319s and 320s *may* be, but for what they'd want, you'd be looking at quite old build aircraft.
DL has been very creative in what they've been up to in the used AC market. They haven't been going after the primary workhorses, the 737 and 320, but rather, the bin-ends, and putting them together.
Most airlines didn't even have the 717 on their radar. DL, with extensive experience with the MD80/90, was suited to add the '95 to their pack of mad dogs. WN, wanting consistency, didn't really want to keep their 'oddball' fleet, so they leased it to DL for cheap. What is UA going to do? knock up HA for their 18 717s? I don't think so.
#341
Join Date: Jun 2014
Posts: 117
United reports strong quarter, topping Wall Street earnings forecasts
United Airlines is making money after a slow start to the year.
The airline's net income in the second quarter hit $789 million, topping Wall Street expectations and marking a turnaround from the first quarter when United was the only major U.S. carrier to report a loss.
The company also said Thursday that it will buy back up to $1 billion in shares over the next three years.
Shares of United Continental Holdings Inc. jumped $2.60, or 5.7 percent, to $48.60 in morning trading.
United has struggled to overcome technology glitches and other problems since the 2010 merger of United and Continental. The Chicago airline lost $609 million in the first quarter as it suffered through 35,000 weather-related flight cancelations. American, Delta and Southwest were posting strong results at the same time.
But United closed the gap in the second quarter at the beginning of the peak summer-travel season.
So-called ancillary revenue — extra fees for things like checked bags and roomier seats — rose 8 percent per passenger.
United seems to be turning the corner, said Cowen and Co. analyst Helane Becker.
"The outlook for the company continues to improve," Becker wrote, citing the company's forecast of revenue per mile in the third quarter.
In the second quarter, United said that excluding special items, it would have earned $2.34 per share in the April-to-June quarter. Analysts surveyed by FactSet were expecting $2.19 per share.
Revenue rose 3.3 percent to $10.33 billion, slightly higher than Wall Street forecasts. Fuel and labor costs each grew about 1 percent.
The airline's net income in the second quarter hit $789 million, topping Wall Street expectations and marking a turnaround from the first quarter when United was the only major U.S. carrier to report a loss.
The company also said Thursday that it will buy back up to $1 billion in shares over the next three years.
Shares of United Continental Holdings Inc. jumped $2.60, or 5.7 percent, to $48.60 in morning trading.
United has struggled to overcome technology glitches and other problems since the 2010 merger of United and Continental. The Chicago airline lost $609 million in the first quarter as it suffered through 35,000 weather-related flight cancelations. American, Delta and Southwest were posting strong results at the same time.
But United closed the gap in the second quarter at the beginning of the peak summer-travel season.
So-called ancillary revenue — extra fees for things like checked bags and roomier seats — rose 8 percent per passenger.
United seems to be turning the corner, said Cowen and Co. analyst Helane Becker.
"The outlook for the company continues to improve," Becker wrote, citing the company's forecast of revenue per mile in the third quarter.
In the second quarter, United said that excluding special items, it would have earned $2.34 per share in the April-to-June quarter. Analysts surveyed by FactSet were expecting $2.19 per share.
Revenue rose 3.3 percent to $10.33 billion, slightly higher than Wall Street forecasts. Fuel and labor costs each grew about 1 percent.
Sorry, just realized I'm late to the game with this report.
#342
FlyerTalk Evangelist
Join Date: Nov 2006
Location: Bangkok or San Francisco
Programs: United 1k, Marriott Lifetime PE, Former DL Gold, Former SQ Solitaire, HH Gold
Posts: 11,886
http://abcnews.go.com/Business/wireS...-loss-24691821
Sorry, just realized I'm late to the game with this report.
Sorry, just realized I'm late to the game with this report.
#345
Join Date: Sep 2010
Location: San Francisco Bay Area
Posts: 5,825
I do not think so. Who knows what tomorrow will bring (one less ice cube in our drinks perhaps? )
Regardless, a strong quarter for UA.