AAL 3Q 2015 Earnings Call

Discussion in 'American Airlines | AAdvantage' started by Pizzaman, Oct 23, 2015.  |  Print Topic

  1. Pizzaman
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    With a nod to the folks in the United forum who cover the UA earnings calls, I'm going to attempt to do the same this morning for folks here who are interested.

    Early reports are EPS of $2.77, which beats estimates by 5 cents. Total revenue of $10.71B, down 3.9% YOY. More to come in about an hour.
     
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  2. Pizzaman
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    $1.9B net profit, highest in AA history.
     
  3. Pizzaman
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    Nuggets from Press Release:

    Mainline CASM down 14.7% (average fuel price down 44.8%)

    Q3 load factor up 220 bps to 86.1%. Biggest gains in Latin America/

    AA salaries and wages up 12.5% YOY.
     
  4. Pizzaman
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    17.7% margin, excluding special charges.
     
  5. Pizzaman
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    Mainline fleet received 17 new jets, retired 30.

    Regional received 15 jets, retired 9.
     
  6. Pizzaman
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    71.1 Billion ASM, down 2.9%
     
  7. Pizzaman
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    Revenue fall due in part to foreign currency issues, more capacity, softness in Latin America.
     
  8. Pizzaman
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    RASM 15.06 cents, down 6%.
     
  9. Wandering Aramean
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    Declared a $0.10/share dividend. Also total of $6bn in share buyback in 2015. That's a lot.
     
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  10. Wandering Aramean
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    Domestic capacity in 2016 to increase 1-2%; int'l to increase 4-6%. Big bump on the int'l side.
     
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  11. Pizzaman
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    Fuel price was an average of $.167/gallon, still unhedged.
     
  12. Pizzaman
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    Thanks for the help getting all the nuggets, Seth!
     
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  13. Pizzaman
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    Over $600MM in cash is being held in Venezuela.
     
  14. Pizzaman
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    Expect Q4 capacity growth of 1%. Domestic 1-2%, Int't flat.
     
  15. Pizzaman
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    2016 growth expected to be 1% in Pacific, 1% for leap year and up-gauging of aircraft.
     
  16. Pizzaman
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    PRASM was down 25% in Brazil and 46% in Venezuela.
     
  17. Pizzaman
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    Expect CASM to be up 3-5% in 2016 due to higher salaries.
     
  18. Wandering Aramean
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    Strongest RASM performance in NYC, CLT. Weakest performance at hubs with higher int'l connecting traffic. Brazil PRASM down 25%, Venezuela down 46%. "We don't realistically expect any improvement until the Brazil economy turns around."
     
  19. Wandering Aramean
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    Harder than it looks, right?? :p
     
  20. Pizzaman
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    Doug ribs Scott Kirby on 20 years with America West, US Airways and AA. Says the airlines would have been much worse off if he decided to do something else.
     
  21. Pizzaman
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    #understatement
     
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  22. Pizzaman
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    Question came up about capacity growth in 2016. Scott says part of the capacity upgrades in 2016 are due to not receiving seats in 2015. This is almost certainly Zodiac screwing the pooch.
     
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  23. Pizzaman
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    Re-banking of DFW was a big success. 10% improvement in the number of flights that departed with 0 minute delays.
     
  24. Pizzaman
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    PRASM down 6.8% NY and CLT were biggest PRASM stars, hubs with international connections were biggest drags.
     
  25. Pizzaman
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    Q: Biggest operations focus after res system integration is?

    Scott says innovation in loyalty program and disaggregate product to compete with low-cost carriers. That doesn't scare me at all.
     
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