Airlines are in the process of reporting their second quarter results, which are expected to be rough across the board, given the extent to which travel demand fell. Well, United Airlines has just reported its second quarter results, and… they’re not that bad?
Continue reading: United Airlines “Only” Lost $1.6 Billion Last Quarter
Share your questions, experiences, and thoughts below.
I fully expect AA results to be a "poop" show. This was not the time to 'go big or go home' as one of their executives apparently put their strategy recently.
Analysts are really questioning the approach - see here: https://seekingalpha.com/article/4359563-american-airlines-managements-risk-taking-raises-bankruptcy-risk
Unless they pull a rabbit out of a hat on the 23rd (earnings report), I imagine they may be forced soon to declare bankruptcy. I'm not sure there is all that much furniture left to burn at this point.
American will be fine, Parker told us a few years ago that they'd never lose money again, and clearly he's a genius, so it will not be a problem.
Nothing “impressive” here. In the context of all the numbers listed here, I am shocked that you are not mentioning how we, the taxpayers, bailed out AA, DL and US. So far it has “only” been $50 billion in grants and loans.
This is "good news" one could say??
At least United is taking targeted active approach towards protecting their balance sheet, the best they can during these tough times. It should be noted 36% of revenues for United were Cargo, well done!! Up from 2% year over year
It should be noted that Delta was weighed down by its foreign investments which tanked.
I believe Southwest will have the smallest loss due, of the big 4.
Delta's Q2 results included restructuring charges for the aircraft they are retiring, as well as the write-down in the value of some of its investments (non-cash) in LATAM, Aeromexico, and Virgin Atlantic.
Buried in United's release is that they have only managed to get about 6,000+ of their 91,000 employees to sign up for their voluntary severance packages. If they cannot improve that, many employees will unfortunately be in a world of hurt come October 1.
Hey Lucky,
I’m not sure Pre tax income is the best comparison this quarter.
Given AA’s ramp up in schedule and significant advanced bookings then demand drop off in July and United’s limited capacity Increase, the air traffic liability seems much more useful since it’ll show the revenue aa received but can’t be recognized until it’s flown (aka: all the aa vouchers now sitting out there that may or may not be used that wouldn’t show in a quarterly pre tax number).
Delta is also blocking middle seats. Seems like Delta is still earning more per seat (sold).
When will UA & DL unveil their Winter/Spring/Summer schedule? American already did and I'm curious about when DL and UA typically do?
Wow, only 6,000? That's such a bad figure compared to DL's 17,000 estimate and Southwest of course.
With nearly 3 million miles I have obviously given United a lot of business. However, their pandemic response has been pathetic. We need more than wings and engines to keep us safe now. It is not acceptable to pack planes as in the past. United can denigrate these concerns but, yes, I want them to do EVERYTHING they can to protect me. Until they show that they are dedicated to safety, don't fly United.
By comparison, some airlines show that they understand and are working to protect us and reassure us that they care about the health of their customers. With all the other disruptions we now endure to protect our health, why would I risk packing onto a plane full of people who obviously don't care, much less in fully packed seats.
On Zoom calls with colleagues across the country, I hear horror stories of packed flights and loose enforcement. Those friends have now reached the same conclusion. Some people may not want to "believe" in COVID, but I don't want to fly with them.
Also, don't tell me "at least United is better than American." It is not good enough to be better than the very worst.
UA is in surprisingly good condition considering the wallop they industry took on the chin. Projected18B in liquidity? Impressive.
The A/F number is not surprising. I actually thought it would be more as spot air rates soared if you could only get the space. Everything froze in China for the first quarter so many shipments destined from China to anywhere by ocean/rail went by air to make up the time.
Business travel is 60-70% of United airlines revenue. By 2022, Business travel is forecast to recover 50% of what it was in 2019. If my math is correct, that is about a 35% less total revenue for the airlines compared to 2019 and that recovery level isn’t expected until at least 2022. Assuming no PPP, that will be a disaster for airline jobs.