http://www.azcentral.com/business/ar...iz-amr011.html

Compared to there $600 million loss 1 year ago. AMR attributes the profit to lower fuel costs.

Now raise pay!

 

Uhhhh... $17 million ain't that much in the grand scheme of things bud. Divided up among Eagle's 12,000 employees that's roughly $.94/hr more over the course of the year (assuming an average 30 hour work week and 2 weeks vacation for every employee). Woooo hooooo.

 

Who typed this ...Nancy Pelosi?

A revenue change of $+617 million...

 

yes i would agree thats a pretty big turnaround, and it looks like it will be that way for most carriers in upcoming quarters

 

Oh, so you want them to distribute $617 million among the employees so they maintain the status quo from last year? Guess I misunderstood Are you saying that turn around was carried on the backs of employees? Because I'm pretty sure OPEC would disagree.

 

A get irritated when people get caught up on "profit" and "revenue". Yes, this is a good turn around, but it is still a -3.3% return on investment, a better calculation of how much money a company is making. The press seems to forget this as do the people. It makes it easier to thrash the "evil large corporations" when you report their profit instead of their ROI.

 

That's how buffett determines if he should buy a company or not. People put too much emphasis on profit. Like you said, if you put $500 million into Company "A" that made $50 million, or put $5 million into Company "B" that made $10 million, the winner is Company "B" even though they had significantly less profit.

Airlines, however, have always had low ROI due to the high cost of entry (ie equipment), so I welcome ANY profit at this point !

 

Yeah. It really POed me when people talked about the record profits of the oil companies (well yeah, they'd never been bigger), or the profits KBR made in Iraq. If you looked at the ROI, it was actually in the 10% range for most of the companies (some higher, some smaller). I know KBRs was about 10% in Iraq, which, when you consider the risks involved, was really quite low. I know XOMs was about 12% when they recorded their record profit which is again very low considering the risks involved in oil exploration. Now I believe it is in the 25% range which is more in line with the risks.
Yeah, I think Buffett's comment about airlines was something to the effect that from an investor's perspective they have been a dismal failure. Or Bransons- if you want to make a little money in the airlines you need to start with alot of money.

 

its still a step in the right direction. lets see what happens this year and next

 

Everyone who talks about Eagle profits are misinformed. Look at AMR. They move the money. Some months Eagle gets charged 5,000 a gate, other its 50,000 a gate.

AMR either shows a profit at Eagle or AA. Eagle had profits the previous 16 quarters in a row then suddenly lost money and AA showed a profit after losing money for 16 quarters. All in how the books are cooked.