12.9 million profit for Q1!

Flightlevels · Post by **Flightlevels** » Thu Apr 27, 2006 9:01 am

great job wj!

abc xyz · Post by **abc xyz** » Thu Apr 27, 2006 9:54 am

Good Stuff

Its now time for AC to put up some numbers that can compete. They got the cost savings they wanted, the airplanes and the load factors. Time to put up results from running the actual airline- talk is cheap.

Hopefully for all airlines involved a solid aviation market in Canada evolves unlike the one south of the border.

tonysoprano · Post by **tonysoprano** » Thu Apr 27, 2006 11:41 am

[quote="abc xyz"]Good Stuff

Its now time for AC to put up some numbers that can compete. They got the cost savings they wanted, the airplanes and the load factors. Time to put up results from running the actual airline- talk is cheap.
Pretty junior thinking abc. The results for the year are the only ones that matter. And for what it's worth, any comparisons are irrelative. Like you say, talk is cheap. Oh and congrats. Nice job WJ.

abc xyz · Post by **abc xyz** » Thu Apr 27, 2006 12:13 pm

Hi Tony,

Dont think its junior thinking at all. I think to firmly reentrench itself as the best Canadian carrier it must post a strong qtr. to counter WestJets momentum. Tit for tat as the say. Yes the 1st qtr is usually the worst, and yes the entire year matters most. However, you dont go praising record load factors week after week and then post a loss. Its put up or shut up time.

And from an employee point of view I think AC posting a strong qtr will ease some tension with regards to future labour demands. keep on losing and uncle milty will be out for more. If you can make money at this time of year your not playing catch-up.

just my 2 cents

Cheers

cyyz · Post by **cyyz** » Thu Apr 27, 2006 12:32 pm

How many new hires, how many new stock purchasers??? Profits genereated through sales of stock...

Where is Dr. Blastor with his opinion?

tonysoprano · Post by **tonysoprano** » Thu Apr 27, 2006 12:58 pm

abc.
I'm in agreement to an extent. But I'm not sure that the term "best" can be determined by profit on a single quarter. Sure, we have to perform, no doubt. If by year's end we lose money, I guess your point is valid. As far as Milty goes, we don't expect any fairness, profit or not. BTW, labour costs have come down but we could never match WJ's ( don't worry, I mean that in a good way).

WJ700 · Post by **WJ700** » Thu Apr 27, 2006 4:53 pm

I'm happy to be part of an airline making money but its still in everyone's collective interest to be part of an entire industry making money. It's still scarey times for me to making a living by burning $72 a barrel gas.

WS739 · Post by **WS739** » Thu Apr 27, 2006 7:06 pm

ABC before bashing AC let them post the numbers!!
I do agree that after posting monthly record load factors that they will have to post a profit but who knows!!!
I do work to WJ but like to see healthy numbers from both!!
Makes one feel better knowing that the industry as a whole is growing and propspering @ grossly high fuel prices!

Ws739

Four1oh · Post by **Four1oh** » Thu Apr 27, 2006 10:17 pm

cyyz wrote:How many new hires, how many new stock purchasers??? Profits genereated through sales of stock...

Where is Dr. Blastor with his opinion?

care to elaborate how you come to this conclusion??

Long Keel · Post by **Long Keel** » Fri Apr 28, 2006 8:01 am

Well done WJ, I hope AC's results are as rosy.

tonysoprano · Post by **tonysoprano** » Sat May 13, 2006 6:30 am

abc xyz wrote:Good Stuff

Its now time for AC to put up some numbers that can compete. They got the cost savings they wanted, the airplanes and the load factors. Time to put up results from running the actual airline- talk is cheap.

Hopefully for all airlines involved a solid aviation market in Canada evolves unlike the one south of the border.

abcxyz.
In case you missed it (I doubt it), here it is:
ACE Aviation Holdings Inc. reports first quarter net income of $118 million
FIRST QUARTER OVERVIEW
- Net income of $118 million compared to a net loss of $77 million in the
first quarter 2005.
- Operating loss of $29 million excluding special labour charges,
compared to an operating loss in the 2005 quarter of $10 million.
- EBITDAR for the quarter of $218 million excluding special labour
charges, an improvement of $18 million from the 2005 quarter.
- Passenger revenues up $282 million or 16 per cent, driven by a 9 per
cent yield improvement and 6 per cent growth in traffic.
- Fuel expense increase of $154 million or 37 per cent over the prior
year's quarter.
- Positive cash flow from operations of $364 million, an improvement of
$50 million from the first quarter of 2005.

MONTREAL, May 11 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE) today
reported a net income of $118 million for the first quarter 2006 compared to a
net loss of $77 million in the 2005 quarter. ACE reported an operating loss of
$29 million for the quarter, excluding special charges for labour
restructuring of $33 million, as a result of increased fuel expenses and
losses recorded at ACTS. This represented a decline of $19 million, excluding
special labour charges, from the first quarter 2005.
Passenger revenues were up $282 million or 16 per cent reflecting
increases in all markets due to a 9 per cent improvement in passenger revenue
per revenue passenger mile (yield) and a 6 per cent growth in passenger
traffic, as measured by revenue passenger miles (RPMs). Unit cost, as measured
by operating expense per available seat mile (ASM), rose 10 per cent from the
same period in 2005. Excluding fuel expense and special labour charges, unit
cost was up 4 per cent and included the effect of growth in non-ASM producing
businesses.
EBITDAR(1) for ACE amounted to $218 million, an improvement of
$18 million from the first quarter 2005, excluding special labour charges.
EBITDAR improvements were achieved, excluding special labour charges, in ACE's
reportable segments: Transportation Services, Aeroplan and Jazz, up
$16 million, $15 million and $22 million, respectively, with the exception of
ACTS which showed a decline of $34 million.
"I am pleased to report a solid first quarter from a financial
perspective with important milestones achieved in the implementation of ACE's
business strategy," said Robert Milton, Chairman, President and Chief
Executive Officer, ACE Aviation Holdings Inc. "During the quarter we made
substantial progress in creating shareholder value through the successful
monetization of our regional carrier Jazz and the special distribution of
Aeroplan units intended to reward shareholders for their confidence in our
business model.
"Air Canada's revenue performance continued to be a success story with
the airline reporting a 16 per cent increase in revenues over the previous
year in the industry's weakest quarter. Robust market demand, rising capacity,
increased load factors and higher yields all contributed to the revenue
growth. Moreover, consumers are responding with enthusiasm to our growing
range of innovative product offerings on aircanada.com such as branded fares
and multi-trip Flight Passes.
"As expected, spiraling fuel costs had a major negative impact on the
airline's cost performance and with oil prices in excess of $70 USD a barrel
on the WTI index, we anticipate this impact to continue throughout 2006.
"Aeroplan's strong performance exceeded expectations for the quarter with
a fifty per cent increase in operating income over the previous year. Aeroplan
is delivering on its revenue, partner and membership growth targets, expanding
rewards and improving operating efficiency, and expects to do so for the
remainder of the year.
"I am particularly pleased with these first results reported by Jazz as a
publicly traded company following the successful completion of its IPO in
February. ACE's regional carrier - Canada's second largest airline - achieved
a net income of $33.5 million in the quarter and reduced unit costs in all
categories except fuel and aircraft rent. This impressive first quarter
performance reflects the stability inherent in its Capacity Purchase Agreement
with Air Canada.
"ACTS, our technical services division, underperformed again this quarter
mainly due to reduced profit margins in the airframe and engine maintenance
divisions. While this is disappointing, I am optimistic that the changes being
implemented on an accelerated basis by the new leadership will result in
improved financial results within the year.
"While the fuel cost environment remains a concern, the revenue outlook
going forward is highly encouraging and with a continued focus on controllable
costs at all ACE companies, I am satisfied that we are well positioned to
deliver a strong performance for the full year relative to the industry."

RECENT SIGNIFICANT EVENTS
------------------

CanadaEH · Post by **CanadaEH** » Sat May 13, 2006 7:23 am

The results for the year are the only ones that matter.

True, somewhat.. Quarterly results are a good indication of company performance. Yes, Q1 is the worst quarter of the year but as abc mentioned - and I think is a pretty good point - when you're glorifying record monthly load factors month after month you need to show results that are in line with them. I don't think you'd disagree with that, do you?

Regarding ACE's Q1 results.. Yes ACE posted a net profit, but without the $220 million partial selloff of Jazz, ACE lost money to the tune of $102 million. That may be insignificant to you because ACE really did make money thanks to that partial selloff, but what's interesting is that ACE's "record" monthly load factors have been nothing but hot air hype.

Some statistics that may be of interest:

Operating margin 13.5% pts below WJ's (10.79% vs -2.5%).
Operating loss of $184m in the 6 months ended March 31/06 vs WJ's profit of $34.2m.
Air Canada's break-even load factor including interest expense was 83.4%, which is as high as it's ever been. Of all legacy airlines reporting so far, only United's was higher. WJ's was 74%, almost 10 pts lower
CASM at 17.82 cents, vs 11.93 at WJ. 33% difference.
RASM at 17.39 vs 13.38 at WJ. 23% difference.

I have no doubt that ACE will post an operating profit this year but behind all the smoke and mirrors of partial selloffs and - I'll give it to ACE - a wise investment in US Airways, the actual airline operations itself isn't all its being hyped up to be.

tonysoprano · Post by **tonysoprano** » Sat May 13, 2006 8:50 am

Yep. No matter what there's always the "but" part. Expert financial analyses from the other side, eh? Whatever. We're happy too.

CanadaEH · Post by **CanadaEH** » Sat May 13, 2006 12:16 pm

Yep. No matter what there's always the "but" part. Expert financial analyses from the other side, eh? Whatever. We're happy too.

Never said "expert" but you can't argue with the statistics I posted. If you'
re happy - all the best to you and your coworkers.

abc xyz · Post by **abc xyz** » Sat May 13, 2006 1:52 pm

Hi Tony,

Im glad your happy. Just sad to see record loads and still not make money running the airline..

tonysoprano · Post by **tonysoprano** » Sat May 13, 2006 7:24 pm

Well, keep up the good work doing what you do. We're doing pretty good doing what we do. Remember, Home Depot and Home Hardware. Why bother.