United Posts $2.1 Billion Dollar Loss for Q1
#11
Maybe I’m being naively optimistic, but according to the article $1 billion was the actual operational loss, $1.2 special charges loss (we know how those can be delayed and manipulated). 2019 had a pre tax profit of 3.9 billion. We know q2 and probably 3 may be a bloodbath, but comparing it year over year, it may not be as dire as one thinks. The company has to lose $3 billion to break even, compared to last years numbers. They just received $5 billion in “free” money to help cushion the blow. The article mentioned the company’s intent to borrow $5 billion from the feds, which comes with the 10% employee furlough restriction.
Oil is way down, wages are just about covered for q2 and q3. It now becomes a race to mitigate the other fixed costs. Of course it’ll all be a moot point if revenue doesn’t come back.
Oil is way down, wages are just about covered for q2 and q3. It now becomes a race to mitigate the other fixed costs. Of course it’ll all be a moot point if revenue doesn’t come back.
#12
Have we hit bottom? Company doesn’t seem to think so.
Oil crash. Too bad we can’t lock in those hedges for 5+ years.
Why aren’t we opening up more flying for June? We have to get moving. Everyone has to get moving again, now. Get the flights back on the reservation boards. Pulse the market then cancel as needed.
Oil crash. Too bad we can’t lock in those hedges for 5+ years.
Why aren’t we opening up more flying for June? We have to get moving. Everyone has to get moving again, now. Get the flights back on the reservation boards. Pulse the market then cancel as needed.
#13
#14
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Joined APC: Apr 2010
Posts: 695
haven’t read the fine print on this potential 10% furlough restriction but it sounds like it applies to 1OCT. does that mean 2OCT it’s a free for all or is there a new length of time that ties to? or perhaps that’s still TBD
#15
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Joined APC: May 2012
Position: CAP A320
Posts: 301
All I see are the same people yelling "Hedge" without understanding how it works. First of all a contract has to be available, and no one is going to have them at these prices. Even if there were contracts, the premiums to buy them would be super expensive. I heard people yelling to hedge when oil was at $40. Well we would have looked like idiots buying it then. Oil will never go up high as in $100 or more, ever again. Not going to go into all the analytics on why but the research is posted for easy finding on the net.
#16
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Joined APC: Nov 2016
Posts: 890
All I see are the same people yelling "Hedge" without understanding how it works. First of all a contract has to be available, and no one is going to have them at these prices. Even if there were contracts, the premiums to buy them would be super expensive. I heard people yelling to hedge when oil was at $40. Well we would have looked like idiots buying it then. Oil will never go up high as in $100 or more, ever again. Not going to go into all the analytics on why but the research is posted for easy finding on the net.
#17
All I see are the same people yelling "Hedge" without understanding how it works. First of all a contract has to be available, and no one is going to have them at these prices. Even if there were contracts, the premiums to buy them would be super expensive. I heard people yelling to hedge when oil was at $40. Well we would have looked like idiots buying it then. Oil will never go up high as in $100 or more, ever again. Not going to go into all the analytics on why but the research is posted for easy finding on the net.
West Texas Intermediate is trading around $1.25 per barrel as of 13:00 CDT. Bring back the dinosaur jets!
#18
#19
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Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
And I'm sure we can trust Steven Nickolas' analysis; he has an excellent CV:
- 10+ years of experience working as a consultant to retail and institutional investors
- Freelance writer who contributes to a wide range of communications media
- His original writing style has garnered industry accolades with numerous awards
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