Originally Posted by
HNLbasedFlyer
Considering the hurricane related cancellations - looks like a solid quarter.
The Jeffie playbook continues to do wonders….
UAL’s profit: $637M
DAL’s profit: $1803M (nearly 3x, but who is counting?)
UAL’s capacity +3%, DAL’s capacity +1.6%
UAL’s Passanger revenue $8528M, it was $8602M in 2016
DAL’s Passanger Revenue $9399M, it was $9071M in 2016 [Just WOW!]
Resulting PRASM:
UAL: 12.17 c/mi (down 3.7%)
DAL 13.40 c/mi (up 1.9%
Had United matched DAL in PRASM this quarter, it would have had another $482M in profit.
In 2010 – before Jeffie’s war on elites and viewing the airline industry as a commodity business where cost cutting was the way to thrive, UAL’s PRASM was 13.57 c/mi, Delta’s was 13.54 c/mi. Had United – which put together the world’s biggest airline with the best assets and the best hubs – simply matched DAL’s PRASM, it would have 10.5% more revenue, or another $860M, this quarter.
but wait, its all the service disruptions, right? Nothing wrong with United as an airline?
UAL - lost $185M in revenue due to storms, DAL lost $120M
And the beating will continue next quarter. DAL is projecting PRASM
growth of 2-4%, UAL is projecting PRASM will
shrink by (1-3%)