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The Wall Street Journal
THE WALL STREET JOURNAL
Alaska Air expected to announce Virgin America deal Monday
By Susan Carey , Robert Wall , and Dana Mattioli
Published: Apr 3, 2016 5:18 p.m. ET
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Frenzied bidding war with JetBlue apparently results in $2.5 billion acquisition
Bloomberg News
Alaska Air Group Inc. is expected to announce Monday that it won the auction for Virgin America Inc., besting rival JetBlue Airways Corp. in a frenzied bidding process that culminated in a cash price of about $2.5 billion, according to people familiar with the matter.
This new chapter in airline consolidation amid low-fare carriers comes at a premium. The deal signed Friday night, according to one of the people, was more than $1 billion over Virgin America’s VA, +0.88% market capitalization on Friday, which had started to rise last month on takeover speculation.
Bidding between Alaska Airlines’ ALK, -0.01% parent and JetBlue JBLU, +0.99% was feverish, this person said, with the price continuing to rise. Alaska prevailed in part because of its clean balance sheet, which will allow it to more easily borrow funds for the acquisition, the person said.
A person familiar with the jousting said it was “a fierce back and forth between the two sides, with multiple bids for a number of days.” But ultimately, JetBlue “put the pencil down” because the price had gotten too high.
The combination of Alaska and San Francisco-based Virgin America, which is expected to undergo scrutiny from the U.S. Justice Department, would create the No. 5 U.S. airline by traffic, eclipsing JetBlue, which currently holds that spot.
An expanded version of this report appears on WSJ.com.
More from MarketWatch
$56-$58 not bad
"Alaska Air Group Inc (ALK.N) is nearing a deal to acquire Virgin America Inc (VA.O), the ninth-largest U.S. airline by passenger traffic, for more than $2 billion, having outbid JetBlue Airways Corp (JBLU.O), people familiar with the matter said on Saturday.
The acquisition would herald the first U.S. commercial airline merger since US Airways and American Airlines combined in 2013 to form the world's largest carrier. It would boost the size of Alaska Air's home market by allowing it to expand into lucrative hubs such as San Francisco and Los Angeles.
Alaska Air is set to pay between $56 and $58 per share to acquire Virgin America, the people said. A deal could be announced as early as Monday, the people added, asking not to be identified because the agreement had not yet been finalized."
What does it work out to .. 48-50 I think
By MICHAEL J. de la MERCED and LESLIE PICKER
APRIL 2, 2016
Alaska Airlines is near a deal to buy Virgin America for about $2 billion, a person briefed on the matter said on Saturday, describing a move that would unite two popular smaller airlines in the latest round of consolidation in the industry.
An announcement could come as soon as Monday, said the person, who spoke anonymously and was not authorized to speak about the matter, and who cautioned that details were still being negotiated and the talks could fall apart.
Alaska squared off against JetBlue, with final bids being entered in recent days.
Virgin America, which went public in late 2014, shares a name with Richard Branson’s Virgin empire. The British mogul holds a 31 percent stake, while the hedge fund Cyrus Capital Partners owns 24 percent.
Thanks, in part, to lower oil prices, airlines were able to post stronger earnings last year. Virgin America generated almost six times more net income — $340 million — in 2015 than in the prior year and had only about $308 million in debt, according to data compiled by S&P Capital IQ.
Despite its name, Alaska Airlines is based in Seattle and generates most of its business through flights outside Alaska. The company was founded in 1932 and today is a subsidiary of Alaska Air Group, which also operates Horizon Air. The parent company, which has a market valuation of about $10 billion, flew 32 million passengers last year. Alaska Air Group is among a small class of airlines to have an investment-grade rating.
Virgin America is much smaller and newer, having been founded in 2007. The company, based in the San Francisco area, has a fleet of about 60 single-aisle Airbus planes that fly to 23 airports in the United States and Mexico.
News of the state of the discussions was reported earlier by The Wall Street Journal.
Hearing 50 a share
Smaller Airlines Looking to Expand With Virgin America Acquisition
4/1/16, 4:28 PM
Smaller U.S. airlines are finding it harder to grow as fast now that the four largest carriers have amassed control of more than 80% of the domestic market.
So when an airline like Virgin America Inc. -- which just concluded the most profitable year in its short history - - explores selling itself, rivals are going to jump at the rare chance to gain more routes and more passengers overnight.
Both JetBlue Airways Corp. and Alaska Air Group Inc. are bidding to purchase Virgin America. Other U.S. airlines kicked the tires, people familiar with the matter said, but the contest is down to just the two low-cost carriers.
Final bids were due late this week and the Virgin America board was expected to make a decision over the weekend, according to a person familiar with the matter. A deal is expected to be valued at more than $2 billion, well above Virgin America's current market capitalization of $1.4 billion.
The acquirer would gain greater presence in important California markets including Los Angeles and San Francisco where Virgin America is based, access to Hawaii, some transcontinental routes and a fleet of 57 narrow-body planes. " Obviously, this is beach-front property," said another person of the prospect.
It is possible Virgin America, which is 54% owned by Richard Branson's Virgin Group Ltd., and New York-based Cyrus Capital Partners LP, could extend the deliberations or ultimately decide not to sell. But talks have been under way for "a few months," one of the people familiar with the matter said.
Virgin America has won kudos -- and a dedicated following in Silicon Valley -- for the mood lighting and sophisticated inflight-entertainment systems on its planes, its stylish service and its frequent-flier plan. But the ninth-largest airline by traffic, launched in 2007, only achieved profitability in 2013, after it slowed its breakneck growth and started filling its seats at higher fares. Now it is poised to grow again and has new planes set to arrive in its fleet over the next few years.
The U.S. airline industry is on track in 2016 to exceed record operating profits, according to Deutsche Bank. But on Friday, its analysts raised the possibility that the sector's earnings have peaked because the economy is in the latter stage of an upcycle that has lasted nearly seven years.
Between 2008 and 2013, eight large carriers merged into four behemoths. During that turmoil and in a period marked by high fuel prices, the big carriers pulled out of smaller markets and kept a tight rein on their capacity, giving small and medium airlines room to thrive, said consultant Jonathan Kletzel, U.S. transportation and airlines leader for PricewaterhouseCoopers LLP.
Today, with fuel prices low for a sustained period, the big airlines can afford to add back routes and compete on price with low-fare rivals.
"For small and medium airlines, their ability to grow organically is harder," said Mr. Kletzel, who isn't involved in the Virgin America sale. "It's faster to grow by acquisition." He sees much uncertainty about the future of those smaller carriers, not only the low-fare flock but also regional airlines that fly for the majors and the ultradiscounters that prospered by offering rock-bottom fares.
There is some disagreement among industry observers about whether antitrust regulators would approve a Virgin America transaction. The Justice Department has been sharply critical of the large airline mergers the department itself has approved in recent years. Last July, the agency said it was investigating whether the four largest airlines were colluding on their capacity plans to keep airfares high.
Jamie Baker, an analyst with J.P. Morgan, said last week that he thought the "regulatory environment remains hostile toward further U.S. industry consolidation." But Mr. Kletzel said "anything that is going to improve the ability of the remaining airlines to be competitive should be viewed favorably by the government."
One thing that could allay regulatory concerns is the fact that the cost structures of JetBlue, Alaska Airlines and Virgin America are quite similar, and much lower than the big carriers, suggesting that ticket prices wouldn't necessarily rise after a transaction.
Last year, JetBlue's unit cost -- the cost to fly a seat a mile -- excluding fuel and profit-sharing was 7.51 cents. Virgin America's unit cost was 7.47 cents and Alaska's unit cost in its jet division, excluding its commuter planes, was 7.39 cents.
Moreover, the route overlaps of both JetBlue and Alaska with Virgin America are modest.
A person familiar with the matter said those involved in the talks believe any actions to appease regulators would be limited to concessions on a narrow number of routes at most. Sweeping remedies that could undermine the value of the takeover aren't expected, one of the people familiar with the matter said.
Some analysts have suggested that JetBlue, the nation's No. 5 airline by traffic, has an advantage because it operates Airbus A320 aircraft, the same model used by Virgin America.
But JetBlue, which launched service in 2000 and is based in New York, also operates smaller Embraer E190 jetliners and has a dedicated fleet of 13 larger Airbuses that are outfitted with its first-class Mint cabins. So a deal wouldn't result in it operating just one aircraft type, which can save on training, maintenance and spare-part costs.
No. 6 Alaska Airlines, which is based in Seattle, operates 151 Boeing Co. 737 planes, having migrated to a single aircraft type in the past decade. But the company also owns a commuter affiliate that flies Bombardier turboprops and plans to purchase some small jets soon. A person familiar with the matter said the opportunities afforded by Virgin America's fleet of 57 planes were large enough to overcome losing the cost benefits of a single-fleet type.
Write to Susan Carey at susan.carey@wsj.com and Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
04-01-16 1728ET
Copyright (c) 2016 Dow Jones & Company, Inc.
*Charles Gasparino ?@CGasparino Tweet: #BreakingNews : bankers say $VA sale could come as early as monday; we lay odds on who it might be 345pm edt
4/1/16, 2:41 PM
JetBlue, Alaska Air Bidding for Virgin America
Source: Dow Jones News
Low-fare startup Virgin America Inc. may soon have a new owner.
Takeover offers from two other U.S. airlines—JetBlue Airways Corp. and Alaska Air Group Inc.—are due by the end of the week, according to a person familiar with the matter, in what could signal the latest wave of consolidation in the industry. A preferred buyer could emerge as early as this week, the person said, though a final deal could take longer to complete. The details of the potential offers couldn't be determined.
The possible takeover of Virgin, a small, San Francisco-based carrier, suggests consolidation in the industry is moving to the regional carriers and ultradiscounters after mergers between 2008 and 2013 combined eight big carriers into four, which now control more than 80% of the U.S. domestic market. The four, in order of size by U.S. traffic, are American Airlines Group Inc., Delta Air Lines Inc., United Continental Holdings Inc. and Southwest Airlines Co.
Virgin America, based in Burlingame, Calif., near San Francisco International Airport, was launched in 2007 and was a steady money-loser until 2013, when it started turning itself around by slowing its breakneck growth and filling more of its seats with higher fares.
Virgin America, now the ninth-largest U.S. airline by traffic, recently started expanding. It took five new Airbus planes in 2015, has five more coming this year and recently ordered 10 more. The company, which has a market capitalization of $1.7 billion, has launched service to Hawaii, expanded into Denver and Dallas and has added flights out of Los Angeles.
But its chief executive, David Cush, has complained the company can't get the gates or slots it needs to grow freely. Part of the problem, he has said, is that all the mergers have winnowed opportunities for smaller carriers.
The takeover talks were reported earlier by Bloomberg.
Virgin America went public in November 2014, and its founding shareholders, Richard Branson's Virgin Group Ltd. and New York-based investment adviser Cyrus Capital Partners LP, still control about 54% of the shares.
Helane Becker, an analyst with Cowen & Co., said those large holders could be seeking to monetize their investment.
She added that JetBlue would make the most sense for Virgin from an aircraft, network and product-offering perspective. JetBlue, the No. 5 U.S. airline by traffic, operates the same types of narrow-body Airbus A320s as Virgin America. The two compete on some major transcontinental routes. JetBlue also has a reputation for offering superior service at relatively low fares.
The person familiar with the matter said JetBlue would be seeking to boost its West Coast presence by buying Virgin America. Alaska's Alaska Airlines unit was interested in boosting the price passengers paid for their tickets in its existing markets, this person said.
Alaska Air Group, the parent of Alaska Airlines, is the No. 6 U.S. carrier by traffic. The Seattle based-company, which has been around for more than 80 years, hasn't made major airline acquisitions since the 1980s.
Under U.S. regulations, a foreign carrier would be limited to buying just 25% of Virgin America, although its voting share could go up to 49%. Virgin Group and Cyrus had to redo their initial plans for the equity in the new airline to satisfy U.S. regulators.
Write to Susan Carey at susan.carey@wsj.com, Robert Wall at robert.wall@wsj.com and Dana Mattioli at dana.mattioli@wsj.com
(END) Dow Jones Newswires
March 28, 2016 20:55 ET (00:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Shares of airline Virgin America Inc. (VA) surged almost 10% in afternoon trade Monday, after a Bloomberg report that the company has received takeover bids from JetBlue Airways Corp. (JBLU) and Alaska Air Group Inc. (ALK). Virgin America, which is backed by billionaire Richard Branson, got the bids after putting itself up for sale, Bloomberg reported, citing people familiar with the matter. Talks are ongoing and a deal could be announced as soon as early next week, the people said. Virgin shares have gained 4% in the year so far, outperforming the S&P 500, which is down 0.4%.
*JETS ETF CEO Says A Buyout Of Virgin America Might Be In The $40-$50 Range, Would Be A 'Gamechanger' For The Industry
*BZ NOTE: Tuesday Morning Morgan Stanley Said Virgin America's Private Owners Presents A Potential Ceiling In Valuation, Says 2 Significant Holders Recently Attempted To Divest Stakes
3/23/16, 9:50 AM
*Virgin America Shares Halted on Circuit Breaker as Hearing Co. Considering Sale, Received Interest
3/23/16, 9:45 AM
VA News: Current Report Filing (8-k) 02/18/2016 08:47:11 AM
VA News: Virgin America Reports Fourth Quarter And Full Year 2015 Earnings 02/18/2016 08:30:00 AM
VA News: Annual Statement of Changes in Beneficial Ownership (5) 02/16/2016 04:09:01 PM
VA News: Current Report Filing (8-k) 02/09/2016 01:46:11 PM
VA News: Virgin America Reports January 2016 Operational Results 02/09/2016 11:00:00 AM
Virgin America Inc. (VA)
30.05 ? -1.1 (-3.53%)
Volume: 630,122 @ 3:30:45 PM ET
Bid Ask Day's Range
30.04 30.05 29.85 - 31.3
VA Detailed Quote Wiki
Virgin America Reports January 2016 Operational Results
Source: PR Newswire (US)
SAN FRANCISCO, Feb. 9, 2016 /PRNewswire/ -- Virgin America Inc. (NASDAQ: VA) today reported its preliminary operational results for January 2016. The airline's traffic (measured in revenue passenger miles) increased 12.9 percent on capacity (measured in available seat miles) that was 11.8 percent higher from the same month in 2015.
Load factor was 77.2 percent, an increase of 0.7 points from January 2015. The number of onboard passengers increased 13.5 percent from the same month last year.
January
2016
2015
Change
Revenue Passenger Miles (000)
834,331
739,118
12.9%
Available Seat Miles (000)
1,080,461
966,399
11.8%
Passenger Load Factor
77.2%
76.5%
0.7pts
Onboard Passengers (000)
561
494
13.5%
About Virgin America: Known for its mood-lit cabins, three beautifully designed classes of service and innovative fleetwide amenities — like touch-screen personal entertainment, WiFi and power outlets at every seat, Virgin America has built a loyal following of flyers and earned a host of awards since launching in 2007 — including being named the "Best U.S. Airline" in Condé Nast Traveler's Readers' Choice Awards years and "Best Domestic Airline" in Travel + Leisure's World's Best Awards for the past eight consecutive years. For more: www.virginamerica.com
Virgin America logo.
Logo - http://photos.prnewswire.com/prnh/20090123/VIRGINAMERICALOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/virgin-america-reports-january-2016-operational-results-300217023.html
SOURCE Virgin America
Copyright 2016 PR Newswire
Approaching IPO low...
VA News: Virgin America To Hold Live Webcast Of Fourth Quarter And Full Year 2015 Financial Results 02/05/2016 09:00:00 AM
VA News: Current Report Filing (8-k) 02/05/2016 08:33:24 AM
VA News: Current Report Filing (8-k) 01/11/2016 01:38:55 PM
VA News: Virgin America Reports December 2015 Operational Results 01/11/2016 11:00:00 AM
VA News: Vanguard annonce les distributions de gains en capital de 2015 pour les FNB Vanguard 12/24/2015 02:17:00 PM
Virgin America Inc. (VA)
29.46 ? -2.05 (-6.51%)
Volume: 895,911 @ 4:49:04 PM ET
Bid Ask Day's Range
27.0 29.99 28.87 - 30.75
VA Detailed Quote Wiki
Aircraft maintenance operations of this company is horrible since the beginning. It's only going to get worse
Current Report Filing (8-k)
Source: Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 5, 2016
VIRGIN AMERICA INC.
(Exact name of registrant as specified in its charter)
Delaware 001-36718 20-1585173
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification Number)
555 Airport Boulevard
Burlingame, CA 94010
(Address of principal executive offices, including Zip Code)
Registrant’s telephone number, including area code: (650) 762-7000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure
On February 5, 2016, Virgin America Inc., issued an investor update providing guidance for Virgin America Inc.’s current expectation related to certain items for the fourth quarter of 2015 and full year 2016. The investor update is attached as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Reference is made to the Exhibit Index attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
VIRGIN AMERICA INC.
Date: February 5, 2016 By:
/s/ Peter D. Hunt
Peter D. Hunt
Chief Financial Officer
EXHIBIT INDEX
Exhibit
No.
Description
99.1 Investor Update issued by Virgin America Inc. dated February 5, 2016
Exhibit 99.1
LOGO
Investor Update: February 5, 2016
Virgin America Inc. (NASDAQ: VA) (the “Company”) is in the process of closing its books for the year ended December 31, 2015, and will release its fourth quarter and full year 2015 financial results on February 18, 2016. This investor update provides guidance for the Company’s current expectations related to certain items for such periods. All data is based on preliminary estimates.
Fourth Quarter 2015
Unit Revenue and Cost Performance
Capacity, as measured by available seat miles, increased by 10.3 percent for the fourth quarter of 2015 as compared to the fourth quarter of 2014.
The Company’s preliminary calculations for Passenger Revenue per Available Seat Mile (PRASM) indicate a decrease of approximately 5.1 percent versus the fourth quarter of 2014. PRASM in the fourth quarter of 2015 was negatively impacted by weaker than expected demand in the month of December and a continued low fare environment in the markets that the Company serves from Dallas Love Field. Total RASM (inclusive of other revenue) decreased approximately 4.7 percent versus the fourth quarter of 2014.
Based on preliminary calculations, Cost per Available Seat Mile (CASM) excluding special items, fuel and profit sharing1 increased approximately 4.6 percent versus the fourth quarter of 2014. The increase in CASM excluding special items, fuel and profit sharing versus the Company’s prior expectations was negatively impacted by the following:
1) Higher than expected marketing costs to support developing markets within Virgin America’s network;
2) Higher aircraft maintenance expense from some minor damage events that occurred during the quarter and from the timing of heavy maintenance activities originally planned to begin in January 2016; and
3) Higher than expected other operating costs for crew training to support the Company’s resumption of growth.
Management believes these additional unexpected costs that the Company incurred during the fourth quarter primarily reflect the resumption of growth during the quarter and, to some degree, the acceleration of costs that would have otherwise occurred in early 2016. The Company continues to expect CASM excluding special items, fuel and profit sharing to decrease between 1.0 percent and 2.0 percent for the full year 2016.
1 Please see “GAAP to Non-GAAP Reconciliations” for reconciliations of non-GAAP financial measures used in this release and the reasons management uses these measures.
Fuel Costs
The economic fuel cost per gallon, inclusive of related taxes and hedge costs, was $1.76 per gallon for the fourth quarter of 2015.
Special Items
The Company expects to record certain special items in its fourth quarter 2015 financial results which are detailed below.
Aircraft Maintenance Deposits - The Company expects to record a non-cash change in estimate of approximately $40.0 million to expense as aircraft rent certain aircraft maintenance deposits held by lessors related to the planned future replacement of engine life-limited parts (“LLP”). Under the current fleet plan, which has been modified to include 10 Airbus A321neo aircraft to be added to the fleet in 2017 and 2018, the Company expects to utilize the fleet in such a way that the LLP replacements are not likely to occur on a number of existing leased aircraft during their lease terms. This change in estimate adjusts LLP deposits for these aircraft. In addition, future LLP deposit payments on these aircraft will be expensed as incurred. Previously, the Company expected to complete replacement of LLPs on these aircraft in a future period, incurring the full expense of replacement, and then recover these deposits after such maintenance event occurred. Under the Company’s revised expectations, the Company will avoid the full replacement cost of the LLPs for these aircraft, ultimately resulting in an overall lower total maintenance cost during the remaining terms of the leases for these aircraft.
Income Tax Valuation Allowance Reversal - The Company expects to record a credit to income tax expense in the fourth quarter of 2015 from the reversal of the income tax valuation allowance on net deferred tax assets. This will be a one-time non-cash credit recorded during the fourth quarter, and will result in recording income tax expense beginning in 2016 associated with any future earnings. The Company expects a tax rate of approximately 38.5% for full year 2016 but does not anticipate any material cash taxes in 2016 as the Company’s federal net operating loss carry-forwards of approximately $690.0 million are expected to offset cash income taxes.
Forward-Looking Statements
Statements in this investor update include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. When used in this release, the words “expects,” “estimates,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook,” “may,” “will,” “would,” “should,” “seeks,” “targets” and similar expressions are intended to identify forward-looking statements. Similarly, statements that describe the Company’s objectives, plans or goals, the Company’s estimates of financial results or performance or actions the Company may take in the future, are forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends affecting the financial condition of its business. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at which or by which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good-faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: the price and availability of aircraft fuel; the Company’s ability to compete in an extremely competitive industry; the successful execution and implementation of the Company’s strategy; security concerns resulting from any threatened or actual terrorist attacks or other hostilities; the threat of unauthorized incursions of our information technology infrastructure; the Company’s reliance upon technology and automated systems to operate its business; the potential effects of emergencies, accidents or similar incidents on the Company’s reputation and business; changes in economic conditions; the Company’s limited profitable operating history; and changes in governmental regulations. Additional information concerning these and other factors is contained in the Company’s Securities and Exchange Commission filings. Caution should be taken not to place undue reliance on the Company’s forward-looking statements, which represent the Company’s views only as of February 5, 2016, and which the Company has no current intention to update. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions of these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events, except as required by law.
Non-GAAP to GAAP Reconciliations
The Company evaluates its financial performance using various financial measures, some of which are measures calculated under GAAP, and some of which use alternative methods of calculation (non-GAAP). These measures include net income/loss, net earnings/loss per share and CASM, among others. Pursuant to SEC Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis. All data is based on preliminary estimates.
CASM is a common metric used in the airline industry to measure an airline’s cost structure and efficiency. The Company believes that adjusting CASM for certain special items is useful to investors because the items are not expected to be incurred on a regular basis in future periods. The Company also believes that excluding fuel costs from CASM is useful to investors because it provides an additional measure of management’s performance excluding the effects of a significant cost item over which management has limited influence. The Company also believes that reporting economic fuel cost per gallon excluding gains or losses on hedges that related to future periods is useful to investors because such gain or loss is not indicative of the actual future value of the underlying hedge contract, and the Company believes that excluding such gain or loss helps investors to understand the core operating performance in the current period. In addition, the Company believes that excluding Profit Sharing costs from CASM better allows investors to understand the core operating cost performance for the period and provides for a more meaningful comparison of the costs of the Company’s operations to those of the rest of the industry.
Preliminary 4th Quarter 2015 CASM
YOY Change
Total CASM
(7.1%)
Less Special Items
(3.0%)
Less Fuel Expense
14.5%
Less Profit Sharing Expense
0.2%
CASM excluding Special Items, Fuel Expense, and Profit Sharing Expense
4.6%
Investor Contact:
Stephen Shulstein - stephen.shulstein@virginamerica.com or 650.645.5694
DAILY/
DAILY/ [-chart]ih.advfn.com/p.php?pid=staticchart&s=VA&p=0&t=17&showctype=1&width=336&height=190&vol=1&afterhours=130[/chart]
[-chart]chart.finance.yahoo.com/t?s=VA&lang=en-US®ion=US&width=300&height=180[/chart]
[-chart]stockcharts.com/c-sc/sc?s=VA&p=D&b=2&g=0&i=p72104498736&r=1395542761133[/chart]
This is worth it. Approaching IPO low...
May buy in here tomorrow.. Depending on what the price does
Not far from IPO price. Prob one of the most attractive airline prices today alongside AAL, SAVE, JBLU.
For the short term at least.
Virgin America Inc. (VA)
36.39 ? -0.18 (-0.49%)
Volume: 23,283 @ 9:58:33 AM ET
Bid Ask Day's Range
36.31 36.4 36.23 - 36.6
VA Detailed Quote Wiki
Virgin America Inc. (Nasdaq:VA) to Ring The Nasdaq Stock Market Closing Bell
Source: GlobeNewswire Inc.
What:
Virgin America (Nasdaq:VA), the California-based airline known for reinventing flying, will visit the Nasdaq MarketSite in Times Square in celebration of its new Airbus A321neo order.
The airline has announced it has agreed to acquire 10 new state-of-the-art Airbus A321neo aircraft, which are up to 20 percent more fuel and carbon efficient than the airline’s current fleet and which will help further reduce operating unit costs and increase revenue opportunities. The 10 new A321neos (short for New Engine Option), which provide the best seat-mile costs of any single-aisle aircraft on the market, are slated for delivery beginning in the first quarter of 2017 continuing through the third quarter of 2018.
In honor of the occasion, Virgin America President and Chief Executive Officer, David Cush and Chief Financial Officer, Peter Hunt, will ring the Closing Bell.
Where:
Nasdaq MarketSite – 4 Times Square – 43rd & Broadway – Broadcast Studio
When:
Wednesday, December 16th, 2015 – 3:45 p.m. to 4:00 p.m. ET
Virgin America Media Contact:
Dave Arnold
(917) 968-3622
dave.arnold@virginamerica.com
Nasdaq MarketSite:
Emily Pan
(646) 441-5120
emily.pan@nasdaq.com
Feed Information:
Fiber Line (Encompass Waterfront): 4463
Gal 3C/06C 95.05 degrees West
18 mhz Lower
DL 3811 Vertical
FEC 3/4
SR 13.235
DR 18.295411
MOD 4:2:0
DVBS QPSK
Nasdaq Social Media:
For multimedia features such as exclusive content, photo postings, status updates and video of bell ceremonies please visit our Facebook page at: http://www.facebook.com/NASDAQ.
For photos from ceremonies and events visit our Instagram Page: http://instagram.com/nasdaq
For news tweets, please visit our Twitter page at: http://twitter.com/nasdaq
For exciting viral content and ceremony photos visit Tumblr Page: http://nasdaq.tumblr.com/
Virgin America Social Media:
For photos from the ceremony and other events visit our Instagram Page: http://instagram.com/virginamerica
For news tweets, please visit our Twitter page at: http://twitter.com/virginamerica
Webcast:
A webcast of the Nasdaq Closing Bell will be available at: https://new.livestream.com/nasdaq/live or http://www.nasdaq.com/about/marketsitetowervideo.asx
Photos:
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About Virgin America:
Known for its mood-lit cabins, three beautifully designed classes of service and innovative fleetwide amenities — like touch-screen personal entertainment, WiFi and power outlets at every seat, Virgin America has built a loyal following of flyers and earned a host of awards since launching in 2007 — including being named the "Best U.S. Airline" in Condé Nast Traveler's Readers' Choice Awards years and "Best Domestic Airline" in Travel + Leisure's World's Best Awards for the past eight consecutive years. For more: www.virginamerica.com
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Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,600 listed companies with a market value of approximately $8.8 trillion and more than 10,000 corporate clients. To learn more, visit: nasdaq.com/ambition or business.nasdaq.com.
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Eyeing VA for a play on a sympathy bounce. Down 2.5% on a big sector day.
Virgin America Inc. (VA)
36.64 ? 0.21 (0.58%)
Volume: 468,224 @ 4:25:39 PM ET
Bid Ask Day's Range
34.74 36.7 36.27 - 36.77
VA Detailed Quote Wiki
Not good at all.
For Q4, the company expects capacity, as measured by available seat miles to rise between 9.5% and 10.5%. Passenger revenue per available seat mile (PRASM) is expected to decrease 3% to 5%.
$40 post earnings. Should break the highs.
Nah overall Q/Q all looks good.
#s look good, wonder if that decrease of 1.1 points from September 2014 will bring this thing down, lol
Virgin America Reports September 2015 Operational Results
Source: PR Newswire (US)
SAN FRANCISCO, Oct. 8, 2015 /PRNewswire/ -- Virgin America Inc. (NASDAQ: VA) today reported its preliminary operational results for September 2015. The airline's traffic (measured in revenue passenger miles) increased 6.5 percent on capacity (measured in available seat miles) that was 8.1% higher from the same month in 2014.
Load factor was 78.1 percent, a decrease of 1.1 points from September 2014. The number of onboard passengers increased 13.9 percent from the same month last year.
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