(This message from the United pilots elected leader today. I think he makes a good point for those of us who love the tulip!) July 24, 2014 Dear Fellow Pilots, Today, United Airlines posted $919 million net income for the 2nd Quarter 2014. This is a record profit for United in a second quarter. United reported quarterly total revenue of $10.3 billion. While the results alone are encouraging, in context with Delta and American Airlines, they are lackluster. Delta and American both posted just over $1.4 billion net income – also individual records for the 2nd quarter. For 2014, United Airlines has a net income of $430 million (excluding special charges) with both Delta and American showing net income of over $1.8 billion. The gap between us and the competition continues to grow. We all have read the analysts’ reports following United’s dismal first quarter. The experts will continue to hold management accountable for United’s inability to generate greater profits despite its route structure and employees. The comparisons to Delta and now American are valid, and we are financially underperforming by comparison. Management can no longer blame the merger or the weather. American Airlines’ merger is not nearly complete, yet its net income was $541 million more than United in the second quarter. The question that repeatedly warrants asking is, should we be satisfied with 3rd place in a three-airline race? The United MEC and the Pilots we represent are not comfortable with third place. Neither are our fellow employees, who also are dependent upon this airline and those who manage it. While profits and bonuses are always good, it is not always fiscally wise or sound to immediately go out and spend them. United’s profit seems to be burning a hole in their pockets. As you have read, despite losing money in 5 out of the last 14 quarters, United has decided to reduce its liquidity by $1 billion by providing a stock repurchase plan over the next three years. While all stakeholders are important, none are more important than customers. It is they who will provide the revenues for a product which they trust, enjoy, and can depend upon. We employees want to work for a sound airline with a quality, industry leading product. United Airlines is not there yet. The merger is incomplete and United Airlines’ infrastructure is incapable of sustaining the long-term efficiencies and operational reliabilities that our passengers expect and deserve. If you come in last in a race, you are following and not leading. Distributing cash takes money away from urgently required integration needs and thins the cushion in place to soften any economic hiccups. To do the basic blocking and tackling, this airline requires the purchase of pads and helmets, not homecoming floats. Fraternally and in Unity, Captain Jay Heppner Chairman, United Master Executive Council
Posted on: Fri, 25 Jul 2014 20:53:59 +0000