Http://muavere.com- Unless you’re a day trader or an industry insider, you probably don’t pay much attention to the airlines’ quarterly earnings reports. But if you did, you’d notice that this quarterly crop of earnings reports is terrific, even though it coincided with one of the worst quarters for customer service in the history of the airline business.
Just for kicks, I decided to compare the latest government report card with the major airlines’ financial performance.
Here are the worst performers by category:
On-time arrivals: United Airlines (66 percent of flights were on time; average score 71 percent)
The airline reported third-quarter net income of $334 million, up 75.8 percent from $190 million in the year-ago quarter. The company’s chairman and chief executive, Glenn Tilton, called the results “excellent” and attributed them to “fundamental improvements across our core business.” Apparently, those improvements did not extend to operating United’s planes on schedule.
Mishandled baggage: US Airways (9.61 per thousand; average 7.55 per thousand)
US Airways beat analysts forecasts, posting a quarterly net income of $177 million, compared with a loss of $78 million, during the same period last year. The reason? Strong demand for airline tickets and rising fares. “Looking into the current quarter, demand remains robust and the yield environment also remains strong,” Chairman and Chief Executive Doug Parker said in a statement. Now, if they could only figure out a way to reunite us with our luggage …
Oversales: Delta Air Lines (3.19 passengers denied boarding per 10,000; average 1.22 per 10,000)
Delta also outperformed analysts’ expectations as net profit rose to $220 million for the quarter, compared with $52 million in the same period a year ago. “Ultimately, it’s our goal to be the undisputed leader in the airline industry,” said Delta’s new chief executive, Richard Anderson. Seems it already is, at least when it comes to turning passengers away at the gate because it oversold the flight.
Mad? Well, don’t say I didn’t warn you about this.
There is nothing wrong with making money, of course. But should we be rewarding underperforming airlines with our business?
Http://muavere.com
Just for kicks, I decided to compare the latest government report card with the major airlines’ financial performance.
Here are the worst performers by category:
On-time arrivals: United Airlines (66 percent of flights were on time; average score 71 percent)
The airline reported third-quarter net income of $334 million, up 75.8 percent from $190 million in the year-ago quarter. The company’s chairman and chief executive, Glenn Tilton, called the results “excellent” and attributed them to “fundamental improvements across our core business.” Apparently, those improvements did not extend to operating United’s planes on schedule.
Mishandled baggage: US Airways (9.61 per thousand; average 7.55 per thousand)
US Airways beat analysts forecasts, posting a quarterly net income of $177 million, compared with a loss of $78 million, during the same period last year. The reason? Strong demand for airline tickets and rising fares. “Looking into the current quarter, demand remains robust and the yield environment also remains strong,” Chairman and Chief Executive Doug Parker said in a statement. Now, if they could only figure out a way to reunite us with our luggage …
Oversales: Delta Air Lines (3.19 passengers denied boarding per 10,000; average 1.22 per 10,000)
Delta also outperformed analysts’ expectations as net profit rose to $220 million for the quarter, compared with $52 million in the same period a year ago. “Ultimately, it’s our goal to be the undisputed leader in the airline industry,” said Delta’s new chief executive, Richard Anderson. Seems it already is, at least when it comes to turning passengers away at the gate because it oversold the flight.
Mad? Well, don’t say I didn’t warn you about this.
There is nothing wrong with making money, of course. But should we be rewarding underperforming airlines with our business?
Http://muavere.com
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