United narrows Q3 PRASM Guidance - analyst expects them to lead Q4 PRASM growth
Was wondering why UAL was up when the market was down 335 points today.
United raised its third quarter passenger revenue per available seat mile (PRASM) guidance, one of the airline industries most important metrics, to a range of 3.5% to 4% from its previous guidance of between 2% and 4%. "The fact that United has had a history of disappointing on PRASM gave us hesitation to fully endorse their turnaround last quarter. With two strong back to back quarters, our nervousness has eased. We expect United to lead the network carriers in PRASM growth in 4Q14. United is also the only network carrier to raise 3Q14 guidance into earnings season," said Cowen analysts. http://www.thestreet.com/story/12909...o&cm_ven=YAHOO |
Originally Posted by HNLbasedFlyer
(Post 23652612)
Was wondering why UAL was up when the market was down 335 points today.
United raised its third quarter passenger revenue per available seat mile (PRASM) guidance, one of the airline industries most important metrics, to a range of 3.5% to 4% from its previous guidance of between 2% and 4%. "The fact that United has had a history of disappointing on PRASM gave us hesitation to fully endorse their turnaround last quarter. With two strong back to back quarters, our nervousness has eased. We expect United to lead the network carriers in PRASM growth in 4Q14. United is also the only network carrier to raise 3Q14 guidance into earnings season," said Cowen analysts. http://www.thestreet.com/story/12909...o&cm_ven=YAHOO |
Originally Posted by iflyuaaa
(Post 23652698)
i'm guessing my divorce had somethign to do with this. jeffy got his way, he lost an unprofitable customer. i have 6 more UA flights booked for the year and that's it. (versus normally i'd have about 30 segments)
Do you think your new airline of choice will embrace and reward your low PRASM habits? (if they do, please let us know! :)) |
Do you think your new airline of choice will embrace and reward your low PRASM habits? (if they do, please let us know! ) I've got a big goose egg in terms of future scheduled flights on UA this year. |
If UA does indeed show improvement, it makes some of their past excuses really seem poor. I mean, they will have faced the Chicago ATC muck-up among several other issues, things which in the past would have been tossed out as excuses for poor performance.
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Originally Posted by entropy
(Post 23652839)
I'm pretty sure most airlines appreciate additional revenue, even if its not top dollar, unless the flights you are on are overbooked.
I've got a big goose egg in terms of future scheduled flights on UA this year. Again, if you maintain your habits (whatever they are), and another airline treats you better and gets you where you need to go efficiently enough, then switching to that airline is a 'no-brainer'. |
Good news
This is good news!!!! Except for the Flyertalk crowd that never has anything positive to say. The airline is on the way back and that is good news!!
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Originally Posted by exerda
(Post 23652850)
If UA does indeed show improvement, it makes some of their past excuses really seem poor. I mean, they will have faced the Chicago ATC muck-up among several other issues, things which in the past would have been tossed out as excuses for poor performance.
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Originally Posted by trk1
(Post 23653370)
This is good news!!!! Except for the Flyertalk crowd that never has anything positive to say. The airline is on the way back and that is good news!!
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Originally Posted by trk1
(Post 23653370)
This is good news!!!! Except for the Flyertalk crowd that never has anything positive to say. The airline is on the way back and that is good news!!
|
Originally Posted by trk1
(Post 23653370)
This is good news!!!! Except for the Flyertalk crowd that never has anything positive to say. The airline is on the way back and that is good news!!
Store 1 sells $10M in Year 1, and has a 10% increase in Year 2, now selling $11M Store 2 sells $20M in Year 1, and has an 8% increase in Year 2, now selling $21.6M Which store is better? |
Originally Posted by channa
(Post 23653478)
It's easy to have a good increase when you have low comps to start from.
Store 1 sells $10M in Year 1, and has a 10% increase in Year 2, now selling $11M Store 2 sells $20M in Year 1, and has an 8% increase in Year 2, now selling $21.6M Which store is better? |
I'm neither a UA apologist or a defender. I hold no UA stock and never plan to. I'm just a guy who fly's them often for business and spends ~$30k/year. Those of you who know me can vouch for that; I praise when it's deserved and call them out for the same reasons.
That said, I'm genuinely AMAZED at how people crap on them when they release bad news and crap on them when they actually release some good news. Why is it so personal for some people? What's with the schadenfreude? They could hire Jean Georges to personally prepare the food in Y mid-air and people would still find something to complain about. It's just an airline... Jeez. |
That said, I'm genuinely AMAZED at how people crap on them when they release bad news and crap on them when they actually release some good news. Why is it so personal for some people? What's with the schadenfreude? They could hire Jean Georges to personally prepare the food in Y mid-air and people would still find something to complain about. It's just an airline... Jeez. They've gotten hammered in the last few weeks despite the cheapest oil in years. |
Originally Posted by exerda
(Post 23652850)
If UA does indeed show improvement, it makes some of their past excuses really seem poor. I mean, they will have faced the Chicago ATC muck-up among several other issues, things which in the past would have been tossed out as excuses for poor performance.
Originally Posted by channa
(Post 23653478)
It's easy to have a good increase when you have low comps to start from.
Store 1 sells $10M in Year 1, and has a 10% increase in Year 2, now selling $11M Store 2 sells $20M in Year 1, and has an 8% increase in Year 2, now selling $21.6M Which store is better?
Originally Posted by entropy
(Post 23653748)
where's the "good" news? they upped the lower end of the guidance, not the upper end. 4% increase over the pathetic comp from last year doesn't put them closer to DL.
They've gotten hammered in the last few weeks despite the cheapest oil in years. UAL had PRASM of 13.71 in 3Q13 and expects 3.5-4% growth in 3Q14. It looks like the non-stage length adjusted numbers are closer. Stage length adjustments would be even more interesting as UAL's stage length is increasing while DAL's is declining. In case you haven't heard, there's this thing called Ebola that's hammering airline stocks... |
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