United Airlines poised to slash payroll costs
#211
or he’s just seen top gun 100 times
#212
Gets Weekends Off
Joined APC: Dec 2008
Position: 320 Captain
Posts: 631
quick recap for those who didn’t want to watch it:
they still own all their United Shares
they shorted other airlines during the drop
never expected revenue to fall to essentially 0
they bought more United Shares at low/lower prices
$150 mil a day in payroll costs aren’t sustainable and need .gov intervention
the airline industry will look different coming out of this, there will be some winners and some losers but United will be around.
special project where big money investors want to buy into a couple of hard hit leisure based stocks and United is part of that
thinks stock will get back to where it was or higher but will be longer than a few months to get there
they still own all their United Shares
they shorted other airlines during the drop
never expected revenue to fall to essentially 0
they bought more United Shares at low/lower prices
$150 mil a day in payroll costs aren’t sustainable and need .gov intervention
the airline industry will look different coming out of this, there will be some winners and some losers but United will be around.
special project where big money investors want to buy into a couple of hard hit leisure based stocks and United is part of that
thinks stock will get back to where it was or higher but will be longer than a few months to get there
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.
#214
Gets Weekends Off
Joined APC: Nov 2009
Posts: 5,169
At the current time that amount of cash is very close to our market cap. Cash on hand is great as long as the laws are changed to prevent another Icahn or Lorenzo, or a Toys R Us buyout (theft).
#215
The American taxpayer will never want to see the majors make a profit again after this bailout is approved.
#216
Gets Weekends Off
Joined APC: Jun 2019
Position: Guppy.
Posts: 285
Americans could hardly stomach the concept of airlines or any other industry making profits, period. Even before all this. That's what happens when instead of money, finance, and economics, high schoolers are taught Shakespeare and Calculus. Zero idea of how the world works.
#217
#219
Played this game long enough. It’s your former FOs I’m concerned with.
Before the public gets too outraged, consider this. Certainly a better record than a gallon of milk.
https://www.bts.gov/sites/bts.dot.go...3Q%202019.xlsx
Before the public gets too outraged, consider this. Certainly a better record than a gallon of milk.
https://www.bts.gov/sites/bts.dot.go...3Q%202019.xlsx
Last edited by CousinEddie; 03-25-2020 at 02:22 PM.
#220
Gets Weekends Off
Joined APC: Mar 2008
Posts: 1,083
Americans could hardly stomach the concept of airlines or any other industry making profits, period. Even before all this. That's what happens when instead of money, finance, and economics, high schoolers are taught Shakespeare and Calculus. Zero idea of how the world works.
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