So where is demand and revenue?
03-18-2009, 08:46 AM
#1
Can't abide NAI
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Joined APC: Jun 2007
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So where is demand and revenue?
US Air and Delta says they are seeing things firm up through March. Not so, says Continental.
The Hits Just Keep On Comin'; Continental Airlines Says Revenues Down 18%
As UBS analyst Kevin Crissey said in a research note this evening, "The headline figure is bad."
Ah, yeah. I think you could say that.
Tonight Continental Airlines issued an update to its guidance. The company now expects March passenger unit revenue (RASM) to be down more than 18% year over year. This -- despite the airline's capacity cuts. And everybody's else's capacity cuts as well.
Continental also said that it is not yet seeing any kind of "stabilization in demand" that some other carriers have indicated of late they are experiencing.
On the plus side, the airline did say that they should beat their own cost guidance for the first quarter. Woo hoo.
As UBS analyst Kevin Crissey said in a research note this evening, "The headline figure is bad."
Ah, yeah. I think you could say that.
Tonight Continental Airlines issued an update to its guidance. The company now expects March passenger unit revenue (RASM) to be down more than 18% year over year. This -- despite the airline's capacity cuts. And everybody's else's capacity cuts as well.
Continental also said that it is not yet seeing any kind of "stabilization in demand" that some other carriers have indicated of late they are experiencing.
On the plus side, the airline did say that they should beat their own cost guidance for the first quarter. Woo hoo.
03-18-2009, 01:29 PM
#2
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Joined APC: May 2007
Posts: 698
How much is their cost down by?
The problem with articles like this is they can be deceiving. Yes revenue is down but so is fuel prices. Your total revenue for your business is directly related to costs, especially in a highly competitive business.
When gas prices were expensive, so were tickets and a direct result was a higher revenue. Profits may have not existed, but now that gas is cheap again, tickets are cheaper and total revenue will naturally be down as well.
This could be a way for Continental management to play games with the pilots in negotiations.
The only number that matters in the end is PROFIT, and I would rather see that than your revenue. GM made billions more in revenue than Continental, but lost billions.
When gas prices were expensive, so were tickets and a direct result was a higher revenue. Profits may have not existed, but now that gas is cheap again, tickets are cheaper and total revenue will naturally be down as well.
This could be a way for Continental management to play games with the pilots in negotiations.
The only number that matters in the end is PROFIT, and I would rather see that than your revenue. GM made billions more in revenue than Continental, but lost billions.
Last edited by tpersuit; 03-18-2009 at 10:05 PM.
