Originally Posted by
CloudsBelow
Ahh. OK. These stats are meaningless. not as meaningful as the stats pointing to eroding Premium Yield that so many were happy to quote in Q1 supporting their "TPAC tango will doom AC", "Rouge will doom AC", "Obvious premium passengers have left AC in droves" sentiments .... When I get some time, I will be sure to review those threads to be sure you're not talking out of both sides of your mouth.
I can save you the time. I don't really care about those statements, and I don't recall ever making any even similar. I've always maintained that the kind of statements made about loads, etc, are of virtually no significance compared to the actual financials. And that applies to any airline.
One stat that might be of interest is OTP, as that directly affects passengers.
My concern about rouge is that it will inevitably dilute and degrade mainline service for all kinds of operational reasons. The use of rouge flights for mainline while repositioning from YVR to YYZ is an example. The first time that happens and someone who paid for a real J ticket only to find themselves sitting in a rouge plane, I'm sure we'll hear howls about how they paid for a ticket and nothing else, and that they should count themselves lucky 'cause Air Canada threw in a flight for no extra charge.
You are able to cut through increased RASM, faster-than-expected decreased CASM, Premium Class revenues rising 3.3%, and a 25% jump in share price.
That is some spin from AC. Sure is fooling a lot of people. Not you though.
(as a side note, I'm not long on AC.TSX (and would never go too long on an airline stock) but saw a great opportunity ahead of their results release today).
Bottom line, an impressive quarter for AC and they deserve it.
"Impresive quarter for AC" maybe. But I still think back to Delta earning a $4 billion profit in a single quarter. To me,
that's impressive.
As for what I'm able to "cut through", I don't care about RASM, CASM, revenue sources,etc, 'cause as a passenger (former) they don't affect me at all.
As for the spin, I'm just always amazed at Air Canada's ability to spin almost anything as an "enhancement."
And I wonder how much of that 25% stock price gain will roll back over the next week or two.
I also note, as I did elsewhere, that so far this year they've still lost money, even using their magic accounting.