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, 3:47 pm
#301
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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
Did anyone else pick up on the comment in the conference call, I think it was by John Rainey (source of "over-entitled elites" comment), that the UA strategy of selling more "buy-ups" into the Premium cabins was producing good results?
I wish I had written down his comments.
Will there be a transcript of this conference call produced?
Does anyone know how to obtain a copy?
I wish I had written down his comments.
Will there be a transcript of this conference call produced?
Does anyone know how to obtain a copy?
Jul 24, 2014, 3:53 pm
#302
FlyerTalk Evangelist
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
Transcripts of the quarterly conference calls are generally available on seekingalpha.com within a day or two of the call. To read it, you'll need to register (give them a throw-away email address).
Jul 24, 2014, 3:56 pm
#303
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Location: DEN
Programs: Delta Silver. Former AA gold. UA MP and DL Plat AMEX cardholder
Posts: 1,254
Is that a wise business decision when resale values for non-wingletted 757s are artificially high (FedEx) and the aircraft would require a substantial reconfiguration ($$$) to get CASM to 737 levels? I think you correctly note that they could arrange a deal if they really wanted to, and the fact of the matter is they don't. Delta and American have significant 757 retirement plans too, and they're replacing them with A321s and 737-900ERs like United. UAL is just ahead of the curve in this respect. Most of those retirements will be in their respective domestic networks.
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.
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.
com'on. Doesn't seem to bother DL at all. CO didn't see any writing on the wall. They moved the 757 to TATL because they didn't order enough WB aircraft to compensate on Euro routes from dumpy EWR. The 757 was the only aircraft capable in doing the job and oftentimes was not even suitable for that (look at BCN-EWR during the winter.)
But without going into the same old song, I do think UA might possibly regret retiring those 757s when they could have been dumping E145s instead. The ignorance continues.
Last edited by REPUBLIC757; Jul 24, 2014 at 4:02 pm
Jul 24, 2014, 3:58 pm
#304
FlyerTalk Evangelist
Join Date: Apr 2008
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Posts: 21,172
If there's one thing UA is great at growing quarter over quarter, it's ancillary fees...small ball at it's best
Jul 24, 2014, 4:14 pm
#306
Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,686
I was looking for reasons as well and found nothing. I used the end of day low as an excuse to buy into the industry.
Last edited by fastair; Jul 24, 2014 at 4:26 pm
Jul 24, 2014, 4:34 pm
#309
Join Date: Nov 2008
Location: USA
Programs: MYOB
Posts: 1,292
Jul 24, 2014, 4:36 pm
#310
Join Date: Feb 2006
Programs: UA, Starwood, Priority Club, Hertz, Starbucks Gold Card
Posts: 3,952
Will be interesting to watch the 'Battle for Seattle' as it plays out.
http://splash.alaskasworld.com/Newsr...724_045148.asp
"Alaska Air Group Reports Record Second Quarter 2014 Results
http://splash.alaskasworld.com/Newsr...724_045148.asp
"Alaska Air Group Reports Record Second Quarter 2014 Results
If I were Smisek, I'd take a page out of Gerald Arpey (who famously flew to Tokyo to lobby JL to stay in oneworld) and make a pitch for AS to join *A when DL codesharing ends next year. It's a long shot, but AS is now saying that they are considering all options, so let's put all the options out there. (But it's also Smisek, whom I don't expect to make long shot decisions like this.) As an observer, I just love game theory.
IMO, the PRASM growth that the industry has witnessed over the last couple of years might be petering out. AAL, DAL, and UAL all fell ~ 2% today.
Jul 24, 2014, 4:46 pm
#312
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
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Posts: 21,172
Jul 24, 2014, 5:04 pm
#313
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Location: San Francisco/Tel Aviv/YYZ
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Is that a wise business decision when resale values for non-wingletted 757s are artificially high (FedEx) and the aircraft would require a substantial reconfiguration ($$$) to get CASM to 737 levels? I think you correctly note that they could arrange a deal if they really wanted to, and the fact of the matter is they don't. Delta and American have significant 757 retirement plans too, and they're replacing them with A321s and 737-900ERs like United. UAL is just ahead of the curve in this respect. Most of those retirements will be in their respective domestic networks.
Jul 24, 2014, 5:59 pm
#314
Join Date: Jan 2005
Location: New York, NY
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Posts: 9,453
It obviously "bothers" Delta insofar as they announced a very dense configuration for their remaining 757 domestic fleet (the ones which are not to be retired). They clearly do not believe the aircraft's costs are sustainable in a 180-seat domestic config.
CO didn't see any writing on the wall. They moved the 757 to TATL because they didn't order enough WB aircraft to compensate on Euro routes from dumpy EWR. The 757 was the only aircraft capable in doing the job and oftentimes was not even suitable for that (look at BCN-EWR during the winter.)
But without going into the same old song, I do think UA might possibly regret retiring those 757s when they could have been dumping E145s instead. The ignorance continues.
But without going into the same old song, I do think UA might possibly regret retiring those 757s when they could have been dumping E145s instead. The ignorance continues.
Jul 24, 2014, 6:13 pm
#315
Join Date: May 2008
Location: Escondido, CA
Programs: US Chairman no more. AA EXP
Posts: 682
The airline will lose money flying a pax at $1 because of the added fuel cost, a 75 kg person fighting gravity for 2 hrs is real energy used by fuel. I do agree that SLUT fare buckets improve the bottom line and are better than flying empty seats.