United Airlines poised to slash payroll costs
#221
Yes, god forbid HS kids should learn about Shakespeare or calculus. I do agree personal finance is way underemphasized in our society, but 40 years ago, legally fleecing Americans was much more difficult... which probably coincides with more econ and finance majors today.
#222
And we need to send CEOs back to school to educate them about conserving cash and avoiding stock buybacks.
#223
Line Holder
Joined APC: Feb 2020
Posts: 98
Just to nitpick but the highlighted above about our daily payroll costs is way inaccurate.
Based on the 2019 annual report: Investor Relations - United Airlines Holdings, Inc.
2019 2018 Increase (Decrease) % Change
Salaries and related costs $ 12,071$ 11,458 $ 613 5.3
Aircraft fuel 8,953 9,307 (354) (3.8)
Regional capacity purchase 2,849 2,649 200 7.6
Landing fees and other rent 2,543 2,449 94 3.8
Depreciation and amortization 2,288 2,165 123 5.7
Aircraft maintenance materials and outside repairs 1,794 1,767 27 1.5
Distribution expenses 1,651 1,558 93 6.0
Aircraft rent 288 433 (145) (33.5)
Special charges 246 487 (241) NM
Other operating expenses 6,275 5,801 474 8.2
Total operating expenses $ 38,958 $ 38,074 $ 884 2.3
so that comes $33 million/ day ($12,071 billion/365 days) $150 million per day would be $54.75 billion per year!!! More then our entire operating revenue by $10+billion.
Based on the 2019 annual report: Investor Relations - United Airlines Holdings, Inc.
2019 2018 Increase (Decrease) % Change
Salaries and related costs $ 12,071$ 11,458 $ 613 5.3
Aircraft fuel 8,953 9,307 (354) (3.8)
Regional capacity purchase 2,849 2,649 200 7.6
Landing fees and other rent 2,543 2,449 94 3.8
Depreciation and amortization 2,288 2,165 123 5.7
Aircraft maintenance materials and outside repairs 1,794 1,767 27 1.5
Distribution expenses 1,651 1,558 93 6.0
Aircraft rent 288 433 (145) (33.5)
Special charges 246 487 (241) NM
Other operating expenses 6,275 5,801 474 8.2
Total operating expenses $ 38,958 $ 38,074 $ 884 2.3
so that comes $33 million/ day ($12,071 billion/365 days) $150 million per day would be $54.75 billion per year!!! More then our entire operating revenue by $10+billion.
#225
Obviously they screwed the pooch on this one ...... way to go Doug Parker 🤮.
I sure as hell don’t know.......I fly - they manage.
#226
#227
Gets Weekends Off
Joined APC: Aug 2019
Posts: 968
The damage from this will come from the impact on the global economy as a response to the virus, not the actual virus. We could go to zero cases globally in a month, but the recovery could be slow. People all over the world have sunk their life savings into small businesses and restaurants. Many cannot go a month with little or no sales and will not be back. It will take time for others to enter the market and replace those jobs. Looking selfishly at our industry, there will likely be far fewer people coming out of this in a financial position to travel even if the fear is gone. We’re far enough down the rabbit hole now that it doesn’t really matter if the response was justified or hyped up panic. The damage is done.
#228
Gets Weekends Off
Joined APC: Aug 2019
Posts: 968
#229
Gets Weekends Off
Joined APC: Nov 2009
Posts: 5,169
Don’t you have some side hustle making 30k/month that’s a better use of your time since you couldn’t hack it even getting TO the majors?
#230
Gets Weekends Off
Joined APC: Jul 2014
Posts: 779
Almost every high school today has some form of personal finance class and it has a limited benefit. The kids don't understand the importance or the real world value and often times the teacher is just a regular math teacher who might be a financial wreck themselves. You can be great at Calculus and still get suckered into leasing a car, getting bent over by a financial advisor, get sold a whole life insurance policy, or not understanding your credit score. Corporate finance is an even bigger can of worms that is continually changing with tax codes and more and more complex payments schemes for executives. There will always be people getting taken advantage of and to think that previous generations were more adept at avoiding it is pretty laughable. We have the power of the internet today where a quick google will solve a lot of scams or high pressure sales tactics and yet we still have timeshares, bad investment advice, and car loans above 20% interest... There is a sucker born every minute.
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