Originally Posted by
T773ER
Really wasnt that great of a quarter which is why the stock actually traded down on the news. While beating on the bottom line UA missed on top line revenue. The reall kicker was the decrease in PRASM across the board, unit revenue in the domestic market actualy decreased yoy while Delta saw a 2% increase. Granted UA did add 6.6% of capacity vs DLs of 4%. Overall unit passenger revenue declined 3.3% for domestic and 7.1% for international. Those kinds of unit revenue declines are not sustainable and will only lead further to DLs margin advantage (which we actually saw expand this quarter). What that practically means is that DL is making more revenue and profit on less flying than UA. I will be curious to see what management says about these decreasing PRASM numbers and any potential capacity adjustments.
My guess is Kirby is going to continue full speed ahead with the growth and accept the PRASM declines. We will see if Wall St. is going to throw a fit over that plan tomorrow.