Best of luck to all those guys who interviewed today.

 

News from Bendo last week in recurrent is we're headed to Cuba soon, from FLL and IAH...

 

^ amazing screename!

 

Need to do it from IAG and PBG, tap into all them Canadians going to Cuba.

 

They can connect...

 

At least on the way back they would have to. I don't see Niagara building a world leading customs facility.

 

Despite the Meltdown, looks like we still best 2Q Forecast

MIRAMAR, Fla. (AP) _ Spirit Airlines Inc. (SAVE) on Friday reported second-quarter earnings of $76.7 million.
The Miramar, Florida-based company said it had profit of $1.05 per share. Earnings, adjusted for non-recurring gains, came to $1.03 per share.

The results surpassed Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.01 per share.

The airline posted revenue of $553.4 million in the period, which also topped Street forecasts. Five analysts surveyed by Zacks expected $553.3 million.

Spirit shares have fallen 19 percent since the beginning of the year. The stock has dropped roughly 2 percent in the last 12 months.

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This story was generated by Automated Insights (Automated Insights - The Future of Financial Reporting) using data from Zacks Investment Research. Access a Zacks stock report on SAVE at Financial Newsletter

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Keywords: Spirit, Earnings Report

 

Difficult to believe. But goes to show the incredible power of this company if it was to organize itself. What troubles me is the fact that we are 46mil in a 5 yr spread and we dumped 20mil in a few days for poor planing, oh! and weather. The other thing is more troublesome, our MEC believing that "the ship is sinking"...(should stick to updating me on his upgrade progress).

Good to hear the numbers are good.

 

The downward trend in SAVE stock probably has more to do with a negatively trending outlook (still overall positive). Lower RASMs.

From the Q2 '15 Earnings

For the second quarter 2015, Spirit’s total operating revenue was $553.4 million, an increase of 10.8 percent compared to the second quarter 2014, driven by an increase in flight volume, partially offset by a decrease in operating yields.

Total revenue per passenger flight segment (“PFS”) for the second quarter 2015 decreased 12.4 percent year over year to $122.59, primarily driven by a 19.4 percent decrease in ticket revenue per PFS. The decline in ticket revenue per PFS was driven by lower fare levels as a result of increased competitive pressures as well as a higher percentage of the Company’s markets being under development compared to the same period last year. Although slightly lower year over year on a per PFS basis, non-ticket revenue continues to provide a stable revenue stream that is increasingly important during periods of lower passenger yields. Non-ticket revenue per PFS only declined 1.7 percent year over year to $54.24. The decrease in non-ticket revenue per PFS was primarily attributable to lower bag revenue per PFS and the outsourcing of the Company’s onboard catering to a third-party provider under a revenue share agreement.

Total revenue per available seat mile (“RASM”) for the second quarter 2015 decreased 14.8 percent compared to the second quarter 2014 on a capacity increase of 30.1 percent. The RASM decrease was driven by lower fare levels as a result of increased competitive pressures as well as the ramp up growth in the Company’s new and mature markets.

 

Here is article about RASM and low Oil. ( maybe Baldanza is smarter than every other airline CEO, lol)

https://www.google.com/url?rct=j&sa=...Fd8U-4cyUxv5yw


AAL ALGT DAL
Imperial Capital analyst Bob McAdoo released a report this week explaining what he sees as flawed logic used by the market in valuing airline stocks. While many airline investors focus on the industry-specific revenue per available seat mile (RASM) metric, McAdoo believes that the best indication of the performance of the airliners is good old-fashioned profits.


The Rise Of RASM

Back when oil prices were around $100/bbl, the airlines focused on cutting capacity and improving RASM in order to improve operational efficiency, maintain adequate margins and generate profits. Analysts and investors became focused on RASM, rather than profits, as an indicator of the strength of the airlines.

Cutting Capacity

McAdoo explains that the best way to improve RASM is to cut back on capacity by eliminating certain flight destinations, cutting the number of weekly departures or a combination of the two. He explains that, for airlines, cutting capacity is analogous to retail chains closing their weakest stores.


A New World

McAdoo’s argues that capacity cuts made sense when oil prices were so high that many flights had very modest or even negative margins.

“However, with $50 per barrel oil driving several hundred basis points of margin improvement across all airlines, it is likely that virtually all the formerly negative margin flights are now profitable,” he explained.

McAdoo believes that reducing capacity by cutting profitable flights simply to boost RASM numbers is not a logical way to run a business and that the primary focus should always be the companies' bottom lines.

Stock Picks

Despite his criticism, McAdoo remains bullish on airline stocks in the current environment. Imperial’s top airline stock picks are Southwest Airlines Co (NYSE: LUV), American Airlines Group (NASDAQ: AAL), Allegiant Travel Co (NASDAQ: ALGT), Spirit Airlines Incorporated (NASDAQ: SAVE) and Delta Air Lines, Inc. (NYSE