Tag Archives for earnings.
Alison Sider of the Wall Street Journal asked whether Delta supports a CARES Act extension (airline payroll support), since Delta CEO Ed Bastian hasn’t been nearly as public on the issue as others like American’s Doug Parker.
Bastian was in a tough spot.
Delta is losing less money, making customers happy, and sees the near-term dominated by leisure travel that doesn’t touch the coasts. Business travel has tripled, but it’s off of a low base. All the forecast good news means they foresee when they’ll stop blocking middle seats.
The brightest spot is their American Express credit card deal – they are beginning to acquire customers again, excited by the performance of the current limited-time offer.
American Airlines CEO Doug Parker opened the call by thanking “the entire America West Airlines team.” Oops. The airline is often criticized for being America West operating under the American Airlines brand, and that doesn’t help. Parker took over America West days before 9/11, got a government bailout, went on to acquire US Airways and then merge it into the larger American with legacy US Airways executives at the helm.
Following that miscue, which he later said CIO Maya Leibman pointed out to him, he offered that “Black Lives Matter” before getting into quarter’s results and the airline’s plans for dealing with and emerging from the pandemic. 13 things – aside from the actual financial results – stood out to me that help to understand where the airline is going.
American Airlines lost over $2.2 billion in the first quarter, even though things didn’t begin to go south until March. They’re pulling in new cash everywhere they can, cutting costs, and expect not to have any difficulty securing not just payroll protection grants from the U.S. treasury but also subsidized loans.
Those financial metrics aren’t what I’m most interested in at this point, nor the $40 billion in debt they could soon be carrying. Those issues are well covered elsewhere. I wanted to highlight 6 other things last may get less play in broader coverage.
Once again it’s AAdvantage that drove American’s profit but to their credit they didn’t actually lose money flying airplanes in the fourth quarter.
During the earnings call Senior Vice President Don Casey noted that this is the last quarter where American gets a boost from changes resulting from frequent flyer accounting changes.
American Airlines released third quarter earnings and held their earnings call this morning. The carrier reported $557 million in pre-tax income for the quarter.
Their 4.6% pretax margin during the peak summer third quarter is weak. However CEO Doug Parker kept his job through the quarter and that’s the biggest victory for this management team after alienating employees, shareholders, and customers.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
