Spirit of NKS
#7611
Gets Weekends Off
Joined APC: Dec 2009
Position: Airplane
Posts: 2,385
Shares are down on the earnings, probably from the earnings call. I didn't get to hear it, but my guess is, analysts were probably looking for more capacity and revenues were influenced by airfare increases. Just my quick, initial look at things.
I've still to read the transcript.
I've still to read the transcript.
#7612
Gets Weekends Off
Joined APC: Jun 2008
Posts: 647
It seems the stock always goes down the day the quarterly result is out then goes back up.
#7613
Gets Weekends Off
Joined APC: Oct 2010
Posts: 4,603
Good but not quite as profitable as the legacies scaled for size. Hopefully we have some room to raise ticket prices to add revenue.
#7614
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Thread Starter
Joined APC: Oct 2008
Posts: 1,857
i don't know if thats correct, I thought that this company had a pretty high profit margin, scaled for its size they had impressive profits, and there is (according to the share holders call today) room to tweak ticket prices.
#7615
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Joined APC: Oct 2010
Posts: 4,603
You could be right. I'm just ballparking. It'd be interesting to see profit per seat mile if anyone knows where to find that. With Ual making $900m and AA making $1.2b and spirit at $64m, I don't know that they are 14 and 18 times spirits size in terms of seat miles.
#7616
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Thread Starter
Joined APC: Oct 2008
Posts: 1,857
You could be right. I'm just ballparking. It'd be interesting to see profit per seat mile if anyone knows where to find that. With Ual making $900m and AA making $1.2b and spirit at $64m, I don't know that they are 14 and 18 times spirits size in terms of seat miles.
Three months ended June 30
Operating revenue per ASM (RASM) (cents)
2014. 2013. Change
12.46 11.91 4.6%
Hope it helps
#7617
New Hire
Joined APC: Jul 2011
Posts: 9
You could be right. I'm just ballparking. It'd be interesting to see profit per seat mile if anyone knows where to find that. With Ual making $900m and AA making $1.2b and spirit at $64m, I don't know that they are 14 and 18 times spirits size in terms of seat miles.
Spirit May 2014 ASM was 1.1 billion.
#7618
Gets Weekends Off
Joined APC: Oct 2010
Posts: 4,603
There you have it. Spirit is more profitable.
#7619
Gets Weekends Off
Joined APC: Jun 2008
Position: A320 Left
Posts: 192
Looks like ORD-ATL, ORD-MSY, DTW-ATL, and DTW-MSY being added in November. I'm guessing we found some gate space in ORD.
#7620
It is really silly to compare the two.
I have a duplex as a rental property. I make about $300 on each unit totaling $600 per month, or $7200 per year. Big Shot Apartment Company Llc owns a 100 unit buildig and only makes $150 per month on each unit. Am I twice as profitable as them because I am pulling down $300 for each unit? They make $15k per month and $180k per year...
AA could probably cut the 1/3 least profitable routes, and have the same profit margin as Spirit. As Spirit grows, they will put the aircraft on the routes that will be most profitable. Eventually the most profitable route may only draw a 3% profit margin. 3% is still a profit! If you have 100 of those it adds up to a lot of money.
The other thing to think about is: Spirit may be able to make a 3% margin on routes where AA loses money.
Point is: There are a lot of things to consider when comparing the financials of the two..
I have a duplex as a rental property. I make about $300 on each unit totaling $600 per month, or $7200 per year. Big Shot Apartment Company Llc owns a 100 unit buildig and only makes $150 per month on each unit. Am I twice as profitable as them because I am pulling down $300 for each unit? They make $15k per month and $180k per year...
AA could probably cut the 1/3 least profitable routes, and have the same profit margin as Spirit. As Spirit grows, they will put the aircraft on the routes that will be most profitable. Eventually the most profitable route may only draw a 3% profit margin. 3% is still a profit! If you have 100 of those it adds up to a lot of money.
The other thing to think about is: Spirit may be able to make a 3% margin on routes where AA loses money.
Point is: There are a lot of things to consider when comparing the financials of the two..
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