UAL 2013 Q3 Quarterly Earnings

Discussion in 'United Airlines | MileagePlus' started by davef139, Oct 23, 2013.  |  Print Topic

  1. davef139

    davef139 Gold Member

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    Alright its that time again. United is reporting Thursday morning October 23rd 2013.

    Alright so I am flying tomorrow and I think I can get most info shot out while sitting at airport since I leave after call should be over.

    I am expecting most all aspects to be up except capacity lol, they are supposed to be taking some nice spec charges on merger related labor agreements for this quarter also.

    Disclosure: I hold NOV $31 Calls
     
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  2. HeathrowGuy
    Original Member

    HeathrowGuy Gold Member

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    I trust that the Q3 financial results will reflect the awesomeness of Teh Jeff's leadership of the World's Leading Airline.
     
  3. ssullivan
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    ssullivan Gold Member

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    :rolleyes:
     
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  4. zippypinhead

    zippypinhead Gold Member

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  5. Misplaced Texan
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    Misplaced Texan Gold Member

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    And here I thought nothing could top the ridiculousness of the WhinerTalk 3Q2013 thread.

    Good job folks. Carry on.

    Sent from a place using a fruit thing.
     
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  6. davef139

    davef139 Gold Member

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    Sorry folks just realized my plane leaves before call. Maybe if I get a wifi bird to la ill relisten in air and post
     
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  7. genemk2

    genemk2 Gold Member

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    I can try to listen and post. No promises on quality though.
     
  8. genemk2

    genemk2 Gold Member

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    So it begins.
     
  9. genemk2

    genemk2 Gold Member

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    As we already know, $590M profit excluding special charges; $211M of special charges.
     
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  10. genemk2

    genemk2 Gold Member

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    Highest level of quarterly earnings since 3Q 2011, but fell SHORT of United's expectations.
     
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  11. genemk2

    genemk2 Gold Member

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    Demand forecast input into models resulted in accepting too many low yield fares early in the ticketing cycle, leading to high load factors but low yield mix.

    Suboptimization of fleet

    Weakness in Asia Pacific, esp. China

    September ontime performance was 85%...this can't include mainline, right?
     
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  12. genemk2

    genemk2 Gold Member

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    # of written compliments has increased 45% YTD. (Editor's note..from what to what?)
     
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  13. genemk2

    genemk2 Gold Member

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    3Q - Workgroups

    Integrated seniority list for pilots was accepted. Offered recall to all pilots on furlough, for new flight and duty rules.

    IAM tentative agreements covering 28k CSRs, ramp agents, etc. and are going through ratification.

    Still working on other groups (presumably FAs).
     
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  14. genemk2

    genemk2 Gold Member

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    Products:

    New economy seat highlighted
    Preferred seating options -- most extra legroom seats and lie flat business seats
    Highlighting wifi - installing at 1 aircraft per day. Later this year will add inflight streaming product.
    4Q will see significantly new mobile app.
    YTD purchases of ancillary products through mobile app has doubled.
    Now highlighting 787.
     
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  15. adambadam
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    adambadam Silver Member

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    This probably gives the best indication yet as why they changed the *G baggage policy. They are simply looking for every last dollar at this point.
     
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  16. genemk2

    genemk2 Gold Member

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    Mainline on-time is 78.9% for the quarter.
     
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  17. genemk2

    genemk2 Gold Member

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    Focus on reducing time used for taxi into gate, jet bridge to plane, and turnaround.
     
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  18. genemk2

    genemk2 Gold Member

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    2013 consolidated capacity will be expected to decrease 1.2-1.4%, YOY.
     
  19. genemk2

    genemk2 Gold Member

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    Taking aggressive action to fix underperforming areas re revenue:

    1. Demand Forecast underestimated the demand for last minute close-in booking. Intensified during September when there is less leisure travel. This month implemented first of two recalibrations for revenue management; shifted to close-in bookings. To keep more seats open. 2nd recalibration in November will update the demand forecast to reflect more recent demand patterns. Apparently they had changed rev management to reduce oversells, but now will increase overselling because of better data.

    2. 747 fleet is going to be returning to optimal routes, including routes from ORD. $40M add'l benefit expected to be realized.
     
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  20. genemk2

    genemk2 Gold Member

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    Asia Pacific:

    Declined 9.4% YOY driven by capacity growth, and yen weakness.

    Demand for travel to China continues to grow -- flood of new competitive capacity - increased 20% YOY from others, persisting through December. Yields deteriorated beyond forecast.

    Offering between US and Asia is unrivaled, but still want to maintain capacity discipline.

    Talking about SFO-Chengdu.
     
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  21. genemk2

    genemk2 Gold Member

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    Apparently E+ is on almost all mainline now.

    Ancillary revenue grew 16% YOY, to over $20 per passenger. E+ upsell is the primary driver of this growth, increasing 19% YOY in Q3. Dynamic pricing for E+ now, to adjust based on LF and forecasted demand.

    27% increase YOY for premium cabin upsells.

    Goal of increasing ancillary revenue for the year by 9%.
     
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  22. genemk2

    genemk2 Gold Member

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    Satellite WiFi on over 150 aircraft.

    October PRASM expected to decrease 2.5% to 3.5% YOY, including 1% due to government shutdown.

    4Q PRASM expected to decrease 0 to 1% YOY.
     
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  23. genemk2

    genemk2 Gold Member

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    Targeting CASM increases of lower than inflation for the foreseeable future.
     
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  24. genemk2

    genemk2 Gold Member

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    Lower call volumes to call centers, and fewer vouchers issued.

    Scheduled blocktimes were reduced, and will continue to be trimmed.

    Priority on increasing fuel efficiency, primarily due to replacing old aircraft.

    730-750M of gross capital expenditures expected in 4Q.

    6 new 737-900ERs, and 1 787 expected in next quarter.

    12 757-200s expected to be retired in next quarter.
     
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  25. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

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    So that part finally worked, huh??
     
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