UAL 2nd Quarter Results
07-21-2016, 06:34 AM
#1
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UAL 2nd Quarter Results
Question: Second-quarter results are out.
We made $500-800 million (depending on 'special charges'); Delta made $1.7 Billion.
1. Did purchases of 737s or other aircraft acquisitions (leases) lower the profit?
2. Did lowered revenue drive the hour cuts next summer?
3. Is this tied to the rumors of fewer new-hires?
On the other hand, stock was UP after the announcement.
We made $500-800 million (depending on 'special charges'); Delta made $1.7 Billion.
1. Did purchases of 737s or other aircraft acquisitions (leases) lower the profit?
2. Did lowered revenue drive the hour cuts next summer?
3. Is this tied to the rumors of fewer new-hires?
On the other hand, stock was UP after the announcement.
07-21-2016, 07:34 AM
#2
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The results are better than they look on face value. We took a $480ish million dollar special charge from EWR being deslotted. It's a total non-cash loss.
2. Yes
3. Probably
They said on the call that they are lowering expected capacity increases because PRASM is down YoY. This is particularly true on the international side. That being said, they mentioned all of the new long haul additions are performing at or above expectations.
I think moving forward our much improved operational performance will lead to PRASM improvements but it will take time for public perception to change. It was noted on the earnings call that we are already seeing upticks in market share for all of our hubs.
2. Yes
3. Probably
They said on the call that they are lowering expected capacity increases because PRASM is down YoY. This is particularly true on the international side. That being said, they mentioned all of the new long haul additions are performing at or above expectations.
I think moving forward our much improved operational performance will lead to PRASM improvements but it will take time for public perception to change. It was noted on the earnings call that we are already seeing upticks in market share for all of our hubs.
07-21-2016, 09:35 AM
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Exactly. If UAL carried the same number of passengers, and made the same or more on the bottom line, the company would be doing a fantastic job. There has to be a metric out there that can back out those systemic costs and incomes to produce a more comparative number. I am not convinced the analysts even know it because I read some comments by one suggesting we reduce in expensive markets....not like someone else can move in and make ATL money in SFO.
07-21-2016, 09:39 AM
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Exactly. If UAL carried the same number of passengers, and made the same or more on the bottom line, the company would be doing a fantastic job. There has to be a metric out there that can back out those systemic costs and incomes to produce a more comparative number. I am not convinced the analysts even know it because I read some comments by one suggesting we reduce in expensive markets....not like someone else can move in and make ATL money in SFO.
07-21-2016, 09:44 AM
#7
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Because you typically start as an analyst and have no capital to make money on. Wall Streeters don't usually stay as analysts for an entire career; would be like flight instructing. Additionally, they have regulatory rules for trading on companies they report on. That's why even though they can do math and scrutinize balance sheets or income statements, they sometimes ask stupid questions because they don't understand the entire marketplace picture.
07-21-2016, 10:33 AM
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If analysts were any good at what they do, why aren't they all millionaires? These are the same people that were giving mortgage backed securities AAA ratings, right up until they weren't. UAL is trading at around 2x P/E. There are tech companies that barely produce any revenue trading at 75+.
07-21-2016, 12:45 PM
#9
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The results are better than they look on face value. We took a $480ish million dollar special charge from EWR being deslotted. It's a total non-cash loss.
2. Yes
3. Probably
They said on the call that they are lowering expected capacity increases because PRASM is down YoY. This is particularly true on the international side. That being said, they mentioned all of the new long haul additions are performing at or above expectations.
I think moving forward our much improved operational performance will lead to PRASM improvements but it will take time for public perception to change. It was noted on the earnings call that we are already seeing upticks in market share for all of our hubs.
2. Yes
3. Probably
They said on the call that they are lowering expected capacity increases because PRASM is down YoY. This is particularly true on the international side. That being said, they mentioned all of the new long haul additions are performing at or above expectations.
I think moving forward our much improved operational performance will lead to PRASM improvements but it will take time for public perception to change. It was noted on the earnings call that we are already seeing upticks in market share for all of our hubs.
07-21-2016, 02:16 PM
#10
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https://airwaysmag.com/industry/unit...6-q2-earnings/
Try to wrap your head around Delta's management decisions here being described as "idiotic", then later concluding "Overall, we are bullish on United’s strategy approach with its various business units."
Try to wrap your head around Delta's management decisions here being described as "idiotic", then later concluding "Overall, we are bullish on United’s strategy approach with its various business units."
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