Pilots informed of quarterly loss & training freeze
Mar 13, 2018, 1:07 pm
#16
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Right, and a forum in which info from internal company profit/loss memos should not be announced prior to an official earnings annoucement
FT is a public forum for which one doesn't even need an account to read (the vast majority of it, including - relevantly - this forum)...
Mar 13, 2018, 2:29 pm
#18
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It may fall under the realm of the topic, but you would be hard pressed to assert / find that leakage of company training plans on a generally publicly readable forum by an employee would qualify as a specific tipping to a particular person who then acted on that information, and thus made the person who posted the info guilty of insider trading.
Mar 13, 2018, 2:54 pm
#19
Join Date: Jul 2013
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It may fall under the realm of the topic, but you would be hard pressed to assert / find that leakage of company training plans on a generally publicly readable forum by an employee would qualify as a specific tipping to a particular person who then acted on that information, and thus made the person who posted the info guilty of insider trading.
Mar 13, 2018, 3:51 pm
#20
Join Date: Jul 2001
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While it's never good to see a quarterly loss, this was expected; AS is getting intense pricing pressure from DL in SEA, UA in SFO, and pretty much everybody in LAX. No one assumed a larger AS would be welcomed with open arms by their competitors, and this pricing pressure, coupled with high fuel costs, is taking a toll in Q1.
But that also means AS is "only" projecting to grow at just over 4% this year instead of the 6-8% annually it had been doing before the acquisition of VX. Full year pretax profits are still projected to be north of $1B. Advance bookings are strong.
AS isn't going anywhere, and they will continue to grow CA, especially SFO.
Mar 13, 2018, 4:31 pm
#21
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Did I ever say a person would be prosecuted? Obviously nothing would happen here legally. I am just casting a potential doubt of information that is normally highly guarded. Im not saying its not true. But make no mistake if the employee revealing this information could be identified (which they wont) they would be instantly fired. By posting this on an open forum the person would lose any defense of no one acting on it.
Mar 13, 2018, 4:38 pm
#22
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And on the 4Q17/FY17 earnings call, it was disclosed that the expectation was for a 1Q18 loss. This is nothing new.
While it's never good to see a quarterly loss, this was expected; AS is getting intense pricing pressure from DL in SEA, UA in SFO, and pretty much everybody in LAX. No one assumed a larger AS would be welcomed with open arms by their competitors, and this pricing pressure, coupled with high fuel costs, is taking a toll in Q1.
But that also means AS is "only" projecting to grow at just over 4% this year instead of the 6-8% annually it had been doing before the acquisition of VX. Full year pretax profits are still projected to be north of $1B. Advance bookings are strong.
AS isn't going anywhere, and they will continue to grow CA, especially SFO.
While it's never good to see a quarterly loss, this was expected; AS is getting intense pricing pressure from DL in SEA, UA in SFO, and pretty much everybody in LAX. No one assumed a larger AS would be welcomed with open arms by their competitors, and this pricing pressure, coupled with high fuel costs, is taking a toll in Q1.
But that also means AS is "only" projecting to grow at just over 4% this year instead of the 6-8% annually it had been doing before the acquisition of VX. Full year pretax profits are still projected to be north of $1B. Advance bookings are strong.
AS isn't going anywhere, and they will continue to grow CA, especially SFO.
Mar 13, 2018, 6:01 pm
#24
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In your post #9 above, you stated that anyone posting such information would be violating SEC insider trading rules. I'm simply responding to that statement, which is not accurate.
Mar 13, 2018, 8:50 pm
#25
Join Date: Jul 2014
Posts: 339
What other US airlines are actually reporting a quarterly loss right now? (And that’s not rhetorical...I really don’t know).
But WN is making record profits and United’s investors are already pummeling them for making lower profits and with the fare wars continuing... I can’t imagine AS gets through the next few years unscathed without reducing its overreach at this point. Even if the operation itself sustains, investors won’t much longer. This was the hottest stock pick in the industry a short while ago (before the merger became a mess)...my how that seems to have changed
But WN is making record profits and United’s investors are already pummeling them for making lower profits and with the fare wars continuing... I can’t imagine AS gets through the next few years unscathed without reducing its overreach at this point. Even if the operation itself sustains, investors won’t much longer. This was the hottest stock pick in the industry a short while ago (before the merger became a mess)...my how that seems to have changed
Mar 13, 2018, 9:33 pm
#26
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ALK had a decent run today ^
Mar 14, 2018, 7:05 am
#27
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Economies are cycles, things that go up, go down. This is not unpredictable. Most analysts have predicted a slowdown about now for some time. It has been manipulated a little bit with this tax cut issue.
Add in the revenue changes coming from the Mileage Plan, and the issues in SFO and it makes sense.
All companies have periods of increase and periods of pulling back.
Alaska did eliminate a direct competitor and keep Jet Blue from getting a west coast operation and hub. It accomplished that. We'll see in time where Alaska further grows (it will) and then all will be fine. Pulling back some and concentrating on its traditional core markets is what is best.
Add in the revenue changes coming from the Mileage Plan, and the issues in SFO and it makes sense.
All companies have periods of increase and periods of pulling back.
Alaska did eliminate a direct competitor and keep Jet Blue from getting a west coast operation and hub. It accomplished that. We'll see in time where Alaska further grows (it will) and then all will be fine. Pulling back some and concentrating on its traditional core markets is what is best.
Mar 14, 2018, 9:28 am
#29
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The problem with that is with other competitors, in competitive markets, you absorb the (massive) cost of killing one competitor without really gaining any significant pricing power. We're seeing the results now - Southwest, United and JetBlue (and everyone else) aren't dealing with digesting a competitor and continue to offer aggressive pricing on almost all significant routes in the west.
Mar 14, 2018, 10:05 am
#30
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The problem with that is with other competitors, in competitive markets, you absorb the (massive) cost of killing one competitor without really gaining any significant pricing power. We're seeing the results now - Southwest, United and JetBlue (and everyone else) aren't dealing with digesting a competitor and continue to offer aggressive pricing on almost all significant routes in the west.
AS stock is right back down today as well, so I guess the love the market had yesterday was fleeting.