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Old 10-21-2010, 03:34 AM   #1  
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Default 3Q Profit numbers released for both companies

United Continental Holdings, Inc. Announces Third Quarter Results
UNITED REPORTS THIRD QUARTER $473 MILLION PROFIT EXCLUDING SPECIAL ITEMS, $387 MILLION ON GAAP BASIS
CONTINENTAL REPORTS THIRD QUARTER $367 MILLION PROFIT EXCLUDING SPECIAL ITEMS, $354 MILLION ON GAAP BASIS

CHICAGO, Oct. 21 /PRNewswire-FirstCall/ -- United Continental Holdings, Inc. (NYSE:UAL - News) today announced individual third quarter 2010 financial results for United Airlines and Continental Airlines. On Oct. 1, a wholly owned subsidiary of United Continental Holdings, Inc., formerly UAL Corporation, merged with Continental Airlines, Inc. Financial results for United and Continental will be combined when the company reports fourth quarter 2010 results.

United reported third quarter 2010 net income of $473 million or $2.12 diluted earnings per share excluding certain special items, an improvement of $533 million year-over-year. On a GAAP basis, United reported third quarter net income of $387 million.
Continental reported third quarter 2010 net income of $367 million or $2.24 diluted earnings per share excluding certain special items, an improvement of $365 million year-over-year. On a GAAP basis, Continental reported third quarter net income of $354 million.


"Thanks to the efforts of my more than 80,000 co-workers across both airlines, we achieved strong third quarter financial and operational results at both United and Continental," said Jeff Smisek, United's president and chief executive officer. "We have begun our merger integration, and we have a lot of work ahead of us. By working together, we will create the airline that customers want to fly, employees want to work for, and shareholders want to own."

United consolidated passenger revenue increased 21.4 percent in the third quarter 2010 compared to the same period in 2009.
Continental consolidated passenger revenue increased 20.6 percent in the third quarter 2010 compared to the same period in 2009.


"The strong revenue performance of the two carriers reflects the commitment of our co-workers to provide industry leading-products and service to our customers," said Jim Compton, executive vice president and chief revenue officer. "As we integrate the two networks and create the world's leading airline, we will provide even more value to our customers."

The companies ended the third quarter with a combined $9.1 billion of unrestricted cash, cash equivalents and short-term investments.

"The teams did a great job containing costs at both companies while running solid operations during the third quarter," said Zane Rowe, United's executive vice president and chief financial officer. "Our strong liquidity position gives us flexibility as we integrate our companies and manage our debt maturities."

Standalone United Airlines Third Quarter Revenue and Capacity

For the third quarter of 2010, United's total revenue was $5.4 billion, an increase of 21.7 percent compared to the same period in 2009. Consolidated passenger revenue for the third quarter rose 21.4 percent, or $878 million, compared to the same period in 2009.

Consolidated revenue passenger miles (RPMs) for the third quarter of 2010 increased 3.9 percent while capacity increased 2.6 percent year-over-year, resulting in a third quarter consolidated load factor of 85.9 percent.

Consolidated yield for the third quarter 2010 increased 16.9 percent year-over-year. Combined with the 1.0 point year-over-year increase in consolidated load factor, third quarter 2010 consolidated passenger revenue per available seat miles (RASM) increased 18.3 percent compared to the same period in 2009.

United's mainline RPMs in the third quarter of 2010 increased 1.9 percent on a mainline capacity increase of 0.7 percent year-over-year, resulting in a third quarter mainline load factor of 86.8 percent. Mainline yield for the third quarter 2010 increased 17.6 percent over the same period in 2009. Together with the 1.0 point year-over-year increase in mainline load factor, third quarter 2010 mainline RASM increased 18.9 percent year-over-year.

Passenger revenue for the third quarter of 2010 and period-to-period comparisons of related statistics by geographic region for United's mainline and regional operations are as follows:

DELETED

Cargo revenue in the third quarter of 2010 increased 40 percent, or $50 million, year-over-year as continued improvements in demand drove strength in both freight volume and yield across all regions, particularly trans-Pacific markets.

Standalone United Airlines Third Quarter Costs

United's total consolidated expenses for the third quarter 2010, excluding certain special items, increased $463 million or 10.7 percent compared to the third quarter of 2009, of which $211 million was due to higher fuel costs. On a GAAP basis, United's total consolidated expenses increased $514 million or 11.8 percent compared to the third quarter of 2009. Third quarter 2010 consolidated expenses, excluding fuel, profit-sharing programs and certain special items, increased $162 million or 5.4 percent year-over-year on 2.6 percent higher capacity.

Consolidated and mainline costs per available seat mile (CASM), excluding certain special items, increased 7.9 percent and 8.4 percent, respectively, in the third quarter 2010 compared to the same period last year. On a GAAP basis, CASM increased 9.0 and 9.6 percent, respectively. Consolidated fuel prices for the third quarter of 2010 increased 14.4 percent compared to the third quarter of 2009, while consolidated fuel consumption increased 4.2 percent year-over-year. In the third quarter, holding fuel and profit sharing constant and excluding certain special items, consolidated CASM increased 2.4 percent and mainline CASM increased 2.5 percent compared to the same period in 2009.

Standalone Continental Airlines Third Quarter Revenue and Capacity

Continental's total revenue for the third quarter of 2010 was $4.0 billion, an increase of 19.2 percent compared to the same period in 2009. Consolidated passenger revenue for the third quarter of 2010 increased 20.6 percent, or $608 million, compared to the same period in 2009.

Consolidated RPMs for the third quarter of 2010 increased 1.6 percent while capacity increased 0.6 percent year-over-year, resulting in a third quarter consolidated load factor of 85.9 percent.

Consolidated yield for the third quarter 2010 increased 18.7 percent year-over-year. Combined with the 0.8 point year-over-year increase in consolidated load factor, third quarter 2010 consolidated RASM increased 19.8 percent compared to the same period in 2009.

Mainline RPMs in the third quarter of 2010 increased 1.6 percent on a mainline capacity increase of 0.6 percent year-over-year, resulting in a third quarter mainline load factor of 86.6 percent. Mainline yield for the third quarter 2010 increased 19.6 percent over the same period in 2009. Together with the 0.8 point year-over-year increase in mainline load factor, third quarter 2010 mainline RASM increased 20.8 percent year-over-year.

Passenger revenue for the third quarter of 2010 and period-to-period comparisons of related statistics by geographic region for the company's mainline and regional operations are as follows:

DELETED


Cargo revenue in the third quarter of 2010 increased 25 percent, or $23 million, compared to the same period in 2009, principally due to increased freight volume.

Standalone Continental Airlines Third Quarter Costs

Continental's total consolidated expenses for the third quarter 2010, excluding certain special items, increased $263 million or 8.1 percent year-over-year, of which $103 million was related to higher fuel costs. On a GAAP basis, Continental's total consolidated expenses increased $256 million or 7.9 percent compared to the third quarter of 2009. Consolidated expenses for the third quarter 2010, excluding fuel, profit-sharing programs and certain special items, increased $102 million or 4.3 percent year-over-year on 0.6 percent higher capacity.

In the third quarter 2010, consolidated and mainline CASM, excluding certain special items, increased 7.5 percent and 8.3 percent, respectively, compared to the third quarter of 2009. On a GAAP basis, CASM increased 7.2 and 8.3 percent, respectively. Consolidated fuel prices for the third quarter of 2010 increased 11.1 percent compared to the third quarter of 2009, while consolidated fuel consumption increased 0.5 percent year-over-year. Holding fuel and profit sharing constant and excluding certain special items, consolidated and mainline CASM increased 2.7 percent and 3.1 percent, respectively, in the third quarter 2010 compared to the same period last year.

United and Continental Combined Third Quarter Liquidity

United and Continental ended the third quarter with a combined $9.1 billion in unrestricted cash, cash equivalents and short-term investments. During the quarter, the companies generated approximately $750 million of operating cash flow, had scheduled debt and net capital lease payments of $295 million and had capital expenditures of $185 million. In addition, United pre-paid approximately $140 million of debt in the third quarter. In August, Continental issued $800 million of senior secured notes due 2015 at an annual interest rate of 6.75 percent and used $350 million of net proceeds to pre-pay indebtedness.

Notable Third Quarter Accomplishments for United and Continental

United and Continental reached a transition and process agreement with the pilots of both companies. The agreement provides a framework for pilot operations until the two groups reach a joint collective bargaining agreement and single seniority list, and the carriers obtain a single operating certificate.
Continental reached tentative agreements on new labor contracts with the International Association of Machinists and Aerospace Workers representing Continental flight attendants and with the International Brotherhood of Teamsters representing Continental aircraft maintenance technicians and related employees.
Through Sept. 30, 2010, the companies have accrued a total of $214 million under their respective profit-sharing plans. The actual amount of profit sharing that the companies will distribute to eligible employees in February 2011 depends on each company's full-year financial results.
United employees earned cash incentive payments for on-time performance and customer satisfaction totaling $12 million during the third quarter. For the quarter, United recorded a DOT on-time arrival rate of 85.8 percent and a systemwide mainline segment completion factor of 99.1 percent.
Continental employees earned cash incentive payments for on-time performance totaling $8 million during the third quarter. Continental recorded a DOT on-time arrival rate of 83.2 percent and a systemwide mainline segment completion factor of 99.8 percent. Continental operated 31 days during the quarter without a single mainline flight cancellation.
United reconfigured six Boeing 777 aircraft with new products in first- and business-class and improved inflight entertainment and seat options in economy. United has now reconfigured 51 (21 767s, six 777s and 24 747s) of 91 aircraft in its international widebody fleet.
Continental continued to install new flat-bed BusinessFirst seats on its Boeing 777 and 757 aircraft during the quarter, with 40 (16 777s and 24 757s) of 63 international aircraft now completed. The company also continued its DIRECTV® installation, with the service now offered on 145 narrowbody aircraft.
Continental announced plans to launch nonstop flights between Newark Liberty and Cairo, Egypt, beginning May 18, 2011, subject to government approval.
Star Alliance members Continental Airlines and Brussels Airlines announced plans to start codesharing on Continental's trans-Atlantic flights between New York and Brussels complementing existing codesharing between United and Brussels Airlines on flights linking Washington and Chicago with Brussels. In addition, Continental announced plans to start codesharing with Aegean Airlines between New York and Athens.


Merger Integration

Upon the Oct. 1 close of their merger, United and Continental began their integration process. The companies introduced new benefits for customers, including reciprocal upgrade and preferred seating benefits for Mileage Plus and OnePass elite members and expanded free wireless and complimentary alcoholic beverages to airport club lounges across the combined network. The companies have also started the first phase of optimizing their combined route network to offer customers more travel options.

United and Continental continue to operate as separate carriers, and will do so until they receive their single operating certificate, which they currently expect to achieve by the end of 2011. However, travelers will begin to see a more unified product.
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Old 10-21-2010, 03:36 AM   #2  
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Default Cliff Notes....


United Continental Holdings, Inc. (NYSE: UAL) today announced individual third quarter 2010 financial results for United Airlines and Continental Airlines. On Oct. 1, a wholly owned subsidiary of United Continental Holdings, Inc., formerly UAL Corporation, merged with Continental Airlines, Inc. Financial results for United and Continental will be combined when the company reports fourth quarter 2010 results.
Highlights of this quarter include:
· United reported third quarter 2010 net income of $473 million or $2.12 diluted earnings per share excluding certain special items, an improvement of $533 million year-over-year. On a GAAP basis, United reported third quarter net income of $387 million.
· Continental reported third quarter 2010 net income of $367 million or $2.24 diluted earnings per share excluding certain special items, an improvement of $365 million year-over-year. On a GAAP basis, Continental reported third quarter net income of $354 million.
· United consolidated passenger revenue increased 21.4 percent in the third quarter 2010 compared to the same period in 2009.
· Continental consolidated passenger revenue increased 20.6 percent in the third quarter 2010 compared to the same period in 2009.
· The companies ended the third quarter with a combined $9.1 billion of unrestricted cash, cash equivalents and short-term investments.
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Old 10-21-2010, 05:24 AM   #3  
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Went through $28 on pre this am.
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Old 10-21-2010, 05:55 AM   #4  
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Wow, over 9B in unrestricted cash, way higher than DAL at around 5B.

Seems like a great time to settle some open contracts!

KC
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Old 10-21-2010, 06:08 AM   #5  
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Originally Posted by kc135driver View Post
Wow, over 9B in unrestricted cash, way higher than DAL at around 5B.

Seems like a great time to settle some open contracts!

KC
WSJ this morning released a numbers comparison via their blog saying that DAL + AMR = Approx $10B+ cash on hand (per the links below). If UAL is touting $9B alone in it's UNrestricted cash on hand numbers (Of course, this would be AFTER the 'healthy' compensation packages that the NEW UAL Exec's bequethed to themselves), UAL has ENOUGH money in which to "lay down" for our JCBA. PERIOD

"FoSho"......it's all about the FUPM.

Delta Air Lines (DAL) Stock Quote and Charts

AMR Cash on Hand (AMR)

Last edited by SoCalGuy; 10-21-2010 at 06:24 AM.
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Old 10-21-2010, 07:06 AM   #6  
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I don't think it was any coincidence that they wanted a Joint Contract signed by early October and the earnings announcement.
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Old 10-21-2010, 08:01 AM   #7  
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I noticed that the report did not list the CASM for regional affiliates, only mainline and consolidated. I went through and calculated the regional CASM’s:

UAX 15.51˘ vs. UAL mainline at 12.16˘

COEX 18.58˘ vs. CAL mainline at 11.27˘


Also notable was the fuel cost for available seat mile:

UAX 4.91˘ vs. UAL mainline at 3.79˘

Part of this is due to the price of UAX fuel which is 5% higher, likely due to the need to refuel at outstations. That still leaves 25%, which would be due to other inefficiencies of the regional affiliates.

The CASM for UAL mainline has been stable over the last few quarters. The CASM for UAX did decrease several cents, and had been more closely related to the current cost of COEX.
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Old 10-21-2010, 08:27 AM   #8  
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Quote:
Originally Posted by stratoduck View Post
I noticed that the report did not list the CASM for regional affiliates, only mainline and consolidated. I went through and calculated the regional CASM’s:

UAX 15.51˘ vs. UAL mainline at 12.16˘

COEX 18.58˘ vs. CAL mainline at 11.27˘


Also notable was the fuel cost for available seat mile:

UAX 4.91˘ vs. UAL mainline at 3.79˘

Part of this is due to the price of UAX fuel which is 5% higher, likely due to the need to refuel at outstations. That still leaves 25%, which would be due to other inefficiencies of the regional affiliates.

The CASM for UAL mainline has been stable over the last few quarters. The CASM for UAX did decrease several cents, and had been more closely related to the current cost of COEX.
High cost of RJs? Well I guess there is only one solution...
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Old 10-21-2010, 08:36 AM   #9  
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Ok, forget the breakdown for a minute...

That's a $840 million profit, for the quarter, for our airline.

If the loads are any indication, 4th quarter will be highly profitable too.

Now, just write us a check. Simple as that.
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Old 10-21-2010, 12:03 PM   #10  
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Quote:
Originally Posted by kc135driver
Wow, over 9B in unrestricted cash, way higher than DAL at around 5B.

Seems like a great time to settle some open contracts!

KC
Quote:
Originally Posted by SoCalGuy
WSJ this morning released a numbers comparison via their blog saying that DAL + AMR = Approx $10B+ cash on hand (per the links below). If UAL is touting $9B alone in it's UNrestricted cash on hand numbers (Of course, this would be AFTER the 'healthy' compensation packages that the NEW UAL Exec's bequethed to themselves), UAL has ENOUGH money in which to "lay down" for our JCBA. PERIOD

"FoSho"......it's all about the FUPM.
You both beat me to it. DL is relative in size to the new UA and they have almost 50% less on their balance sheet than our company? Like you said about the realities of the situation:

F United P M!
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