Jun 4, 2014, 7:33 am
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 ←
Jul 24, 2014, 12:45 pm
#286
Suspended
Join Date: Jun 2012
Programs: UA PP, AA, DL, BA, CX, SPG, HHonors
Posts: 2,002
It makes absolutely no sense that they're retiring almost all of those 757s, when DL can keep many of similar vintage in service indefinitely. I definitely don't buy the $2 million annual savings BS either. Many of those 757s were owned, so while they have higher operating costs, there's no payments and shiny new 737s need to have a lot of utilization to make up for the payments. And if age is a concern, DL has many 757s that were built in 1984-1985 range that are still in service and are older than the oldest UA example by 4-5 years.
The only thing that interests me is the thought of adding more mainline aircraft from the used market. This strategy has worked quite well for DL, so maybe the CO management team is finally starting to grow a brain.
While this was a great quarter, it's still just a small stay of execution for $mi$ek. He needs to go, and so does the HOU Crew and the mess they've created.
The only thing that interests me is the thought of adding more mainline aircraft from the used market. This strategy has worked quite well for DL, so maybe the CO management team is finally starting to grow a brain.
While this was a great quarter, it's still just a small stay of execution for $mi$ek. He needs to go, and so does the HOU Crew and the mess they've created.
I think UA retire planes roughly around the 25yo mark. DL waits till 30yo, sometimes more.
Jul 24, 2014, 12:51 pm
#287
Join Date: Feb 2008
Location: Independent! But mostly BKK, BCN, SFO, PDX, SEA...
Programs: Lawl COVID
Posts: 1,060
^
Jul 24, 2014, 12:58 pm
#288
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,172
Jul 24, 2014, 1:09 pm
#289
Join Date: Jul 2011
Location: In between IAD and DCA
Programs: UA Plat 1.1MM , Marriott Gold Elite, Hyatt Discoverist
Posts: 2,262
Hate to break it to you, but United does not care at all if you're unhappy or not. As others have said, it's probably not right. But if United is making money and filling seats, why should they care? Even if people voice their unhappiness and stop flying them, as long as there is a full plane, UA stockholders do NOT care about experience.
Jul 24, 2014, 1:13 pm
#290
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Bay Area, CA
Programs: UA Plat 2MM; AS MVP Gold 75K
Posts: 35,068
Hate to break it to you, but United does not care at all if you're unhappy or not. As others have said, it's probably not right. But if United is making money and filling seats, why should they care? Even if people voice their unhappiness and stop flying them, as long as there is a full plane, UA stockholders do NOT care about experience.
Stockholders should care.
Jul 24, 2014, 1:33 pm
#291
Join Date: Apr 2013
Posts: 24
Bad I think in a less than 10 CPM PQD customer for instance.
Jul 24, 2014, 1:35 pm
#292
Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,686
Jul 24, 2014, 1:47 pm
#294
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,172
Don't buy into the $misek myth that you can just fire all below-CPM customers and only fly the wheat, not chaff. That's nonsensical.
Jul 24, 2014, 2:00 pm
#295
Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,686
The hypothetical $1.00 fare, as long as it exceeds the incremental carrying costs (it wouldn't) is a positive when demand is low, often it is negative when demand is high as displacement costs increase as loads increase and high yield folk are rejected due to capacity constraints.
Jul 24, 2014, 2:05 pm
#296
FlyerTalk Evangelist
Join Date: Feb 2002
Location: San Francisco/Tel Aviv/YYZ
Programs: CO 1K-MM
Posts: 10,762
Bolded portion: Incorrect. Nearly every UA airplane is encumbered - serves as collateral for debt. They most certainly require monthly payments.
Uprating the engines is an expensive software modification and UA likely would not see a return on that investment unless it committed to a major, costly reconfiguration to get capacity up over 200, like DL.
I highly doubt UA is looking to add more capacity into tertiary European cities.
Jul 24, 2014, 2:54 pm
#297
Join Date: Apr 2013
Posts: 24
The hypothetical $1.00 fare, as long as it exceeds the incremental carrying costs (it wouldn't) is a positive when demand is low, often it is negative when demand is high as displacement costs increase as loads increase and high yield folk are rejected due to capacity constraints.
Re UA: if you are turning away high value customers because of LF increases then RM is broken or you've cut back capacity too much or canceled too many flights.
Jul 24, 2014, 3:07 pm
#298
FlyerTalk Evangelist
Join Date: Jun 2001
Programs: DL 1 million, AA 1 mil, HH lapsed Diamond, Marriott Plat
Posts: 28,190
Newer isn't working better for UA in on-time performance, mainline completion factor, or fuel use per million ASMs to a significant measure.
Jul 24, 2014, 3:28 pm
#300
Join Date: Jan 2005
Location: New York, NY
Programs: UA, AA, DL, Hertz, Avis, National, Hyatt, Hilton, SPG, Marriott
Posts: 9,454
I love the 757, but the reality is that it is not currently a practical domestic solution in a ~185-seat configuration, and technical limitations prevent the 757-222s from being inexpensively redeployed on other missions. CO saw the writing on the wall some time ago and pulled its 752s into international service, which, while suboptimal from a performance/pax experience standpoint, it also probably made the company more money than strictly domestic service... but not all carriers have/had the route structure to make a 757 transatlantic hub like EWR work.
