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United Reports July 2014 Operational Performance

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Old Aug 7, 2014, 3:57 pm
  #1  
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United Reports July 2014 Operational Performance

CHICAGO, Aug. 7, 2014 /PRNewswire/ -- United Airlines (UAL) today reported July 2014 operational results.

UAL's July 2014 consolidated traffic (revenue passenger miles) increased 1.0 percent and consolidated capacity (available seat miles) increased 1.6 percent versus July 2013. UAL's July 2014 consolidated load factor decreased 0.5 points compared to July 2013.
Say what?
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Old Aug 7, 2014, 4:14 pm
  #2  
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And as a comparison:

http://finance.yahoo.com/news/empty-...211957956.html

"United failed to keep pace with July traffic gains of 6.6 percent at Southwest and AirTran and 2.8 percent at Delta Air Lines."
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Old Aug 7, 2014, 4:18 pm
  #3  
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And UA was just named worst airline in America by AirFareWatchdog.com: The Worst Airlines in America
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Old Aug 7, 2014, 9:51 pm
  #4  
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Originally Posted by kettle1
Say what?
That cutting to profit idea sure seems smart, doesn't it?
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Old Aug 8, 2014, 7:01 am
  #5  
 
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Originally Posted by wrp96
That cutting to profit idea sure seems smart, doesn't it?
or perhaps this is the result of not selling the cheap tickets in advance
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Old Aug 8, 2014, 7:03 am
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Originally Posted by FlyingNut724
or perhaps this is the result of not selling the cheap tickets in advance
or hiring an M&A lawyer to head a customer service organization.
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Old Aug 8, 2014, 7:36 am
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You know, I (not so) secretly think the same way as all you guys.

But my question is this: where were you all when the Q2 results came out and they weren't terrible? I could hear the crickets chirping... Still can, in fact.

It's like there is this big crowd just waiting to pounce on the tidbits of bad news...
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Old Aug 8, 2014, 7:42 am
  #8  
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Originally Posted by ryman554
You know, I (not so) secretly think the same way as all you guys.

But my question is this: where were you all when the Q2 results came out and they weren't terrible? I could hear the crickets chirping... Still can, in fact.

It's like there is this big crowd just waiting to pounce on the tidbits of bad news...
Well, I know that's what every company aspires to. "Let's be NOT TERRIBLE!"

United's merger has been, and continues to be, a colossal failure. The continued "this is a CO/UA crew" infighting YEARS after the merger is only one indicator of the poor leadership in place. The abandonment of their most loyal customers shows up in the overall numbers, but still UA refuses to acknowledge their failure. You really have to wonder what is really being said at those board meetings.
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Old Aug 8, 2014, 7:49 am
  #9  
 
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doesn't suprise me. With the annoucement of next years FFP, the continue cutting of I dont know...EVERYTHING. The higher priced tickets compared to other airlines. There is not much reason to be loyal anymore. I can see this trend continue even worse for the next 14 months
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Old Aug 8, 2014, 7:53 am
  #10  
 
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Originally Posted by FlyingNut724
or perhaps this is the result of not selling the cheap tickets in advance
This. And despite cutting ASMs.

Originally Posted by dcsnowwake
doesn't suprise me. With the annoucement of next years FFP, the continue cutting of I dont know...EVERYTHING. The higher priced tickets compared to other airlines. There is not much reason to be loyal anymore. I can see this trend continue even worse for the next 14 months
Not my experience at all. UA is almost always cheaper than AA on routes they both fly IME.
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Old Aug 8, 2014, 8:13 am
  #11  
 
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Originally Posted by AAExPlat
This. And despite cutting ASMs.
False. ASMs were up 1.6%, which is not a cut. Traffic slightly up (1.0%) but ASM growth was up slightly more resulting in a small drop in load (-0.5%)
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Old Aug 8, 2014, 8:18 am
  #12  
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Originally Posted by fastair
False. ASMs were up 1.6%, which is not a cut. Traffic slightly up (1.0%) but ASM growth was up slightly more resulting in a small drop in load (-0.5%)
As opposed to DL which was able to increase ASMs and maintain its load factor.


Originally Posted by ryman554
But my question is this: where were you all when the Q2 results came out and they weren't terrible? I could hear the crickets chirping... Still can, in fact.

It's like there is this big crowd just waiting to pounce on the tidbits of bad news...

They weren't great either. They continue to underperform their competitors.
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Old Aug 8, 2014, 8:33 am
  #13  
 
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Loads aren't particularly indicative of anything without yields. In the current environment, it's easy to be profitable at slightly lower LF.

Lower loads also help with IRROPS recovery, which is a major complaint here.
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Old Aug 8, 2014, 8:37 am
  #14  
 
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Without the PRASM figures, it's impossible to know whether it was a good quarter or bad. But on the surface the results are solid. It's nice too see that ASMs and RPMs were up. Load factor is plenty fine. You don't want to be higher than that. Look elsewhere if you have an axe to grind.
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Old Aug 8, 2014, 8:38 am
  #15  
 
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meanwhile

AA announced their results - even larger decrease in load factor. I don't think this UA thing is something to get all worked up about.

their traffic did NOT keep up with their increase in capacity, not by a long shot. I don't think UA's performance is much to worry about, nor do I think AA's is either. When you have near 90% load factors, that is good.


http://finance.yahoo.com/news/americ...120000840.html
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