United narrows Q3 PRASM Guidance - analyst expects them to lead Q4 PRASM growth
Oct 9, 2014, 10:33 pm
#31
Join Date: Apr 2011
Programs: WN, AA, UA, DL
Posts: 1,313
Very good results and outlook from UA. UA and WN are the two big carriers taking steps forward now after a slow start. AA and DL are losing momentum.
Numbers that far back are nearly meaningless. Back in the recession era, a carrier like DL with a skew towards shorter flights got killed on the revenue side. With a better economy again, they had the most to gain. Customers will pay up (and have little choice not to) for short flights after a rebound in the economy coupled with a lack of competition after mergers.
Very good points.
Before consolidation, comparing PRASM between airlines served very little purpose, because each airline's route network has fundamental differences than the other. Today, AA, DL, and UA more closely resemble each other such that a direct comparison can arguably be made; however the focus has been (and continues to be) on YOY PRASM change, not actual PRASM itself.
Oct 9, 2014, 11:08 pm
#32
Join Date: Dec 2009
Location: Nashville, TN
Programs: Marriott Lifetime Titanium.;UA 1.5MM; UA Lifetime Gold (whoppee); DL Plat
Posts: 2,124
Well, they've lost my 20 k per year spend......forever!
Oct 9, 2014, 11:15 pm
#34
Join Date: Sep 2003
Location: LAX
Programs: UA MM | BA Silver
Posts: 7,193
Oct 9, 2014, 11:27 pm
#35
Join Date: Jan 2000
Location: London; Bangkok; Las Vegas
Programs: AA Exec Plat; UA MM Gold; Marriott Lifetime Titanium; Hilton Diamond
Posts: 8,745
Explanations (or, in your words, excuses) are not classified as "poor" because they're dismissed by FlyerTalk. United underperformed in the past and provided reasons for that underperformance. The trend appears to be changing, and it looks like the haters keep on hating.
The fact that a poster does not like what COdbaUA is doing does not necessarily make them a hater. In fact, it probably makes them a realist.
Perhaps, but Fargo did not have Rhapsody in Blue.
Oct 10, 2014, 5:24 am
#36
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Oct 10, 2014, 6:33 am
#37
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Programs: DL 1 million, AA 1 mil, HH lapsed Diamond, Marriott Plat
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Back in the recession era, a carrier like DL with a skew towards shorter flights got killed on the revenue side. With a better economy again, they had the most to gain. Customers will pay up (and have little choice not to) for short flights after a rebound in the economy coupled with a lack of competition after mergers.
Oct 10, 2014, 8:35 am
#38
Join Date: Jun 2005
Posts: 4,645
Perhaps we're not "several pages deep" in comments that you describe as "inane" and "sophomoric" because those HVFs have now left, and no longer care.
Rainey and Smisek got what they wanted.
Oct 10, 2014, 9:01 am
#39
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Oct 10, 2014, 9:03 am
#40
Suspended
Join Date: Jun 2012
Programs: UA PP, AA, DL, BA, CX, SPG, HHonors
Posts: 2,002
Perhaps some of the "self anointed" HVFs were actually real HVFs by virtue of spending a lot of money on expensive tickets.
Perhaps we're not "several pages deep" in comments that you describe as "inane" and "sophomoric" because those HVFs have now left, and no longer care.
Rainey and Smisek got what they wanted.
Perhaps we're not "several pages deep" in comments that you describe as "inane" and "sophomoric" because those HVFs have now left, and no longer care.
Rainey and Smisek got what they wanted.
Oct 10, 2014, 9:14 am
#41
Join Date: Feb 2006
Programs: UA, Starwood, Priority Club, Hertz, Starbucks Gold Card
Posts: 3,953
Oct 10, 2014, 9:18 am
#42
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Oct 10, 2014, 9:20 am
#43
Join Date: Jan 2006
Location: Austin,TX (AUS)
Programs: AA, UA
Posts: 767
DL seems to be doing fine, but AA is definitely losing momentum. AA finished last in on-time arrivals in August and their planes seem to be breaking down more often. And, with recent product downgrades, some of its frequent fliers are leaving AA. AA and US still need to combine their IT systems, and if that fails watch out.
Oct 10, 2014, 9:22 am
#44
Join Date: Jun 2005
Posts: 4,645
He has increased margins by cutting capacity and cutting expenses.
So, he shrunk and cut to a smaller but potentially more profitable company, measured by margins, however, in so doing, he also cut a significant amount of profit.
What's better? A $100 million company with a profit of $10 million or a $200 million company with a profit of $16 million?
Isn't it in the best interest of shareholders to continue expanding as long as the marginal benefit is > 0?
Oct 10, 2014, 9:47 am
#45
Join Date: Feb 2006
Programs: UA, Starwood, Priority Club, Hertz, Starbucks Gold Card
Posts: 3,953
But UA did a good job in 3Q, not as good as WN but better than DL and definitely better than AA that is just beginning with its integration mess. IMO, the desire of some people who continue to try and find bad news from an unarguably good set of numbers is beyond pointless. I, for one, am saving my potshots at UA for other threads.