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Talks about CASM.

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Source: Jane Allen

Date: May 27, 2005

Hello, this is Jane Allen with an Update for Friday, May 27, 2005.

I'll begin by sharing some good news about our April performance. First, we kept our mainline cost per available seat mile or CASM - excluding fuel costs - in line with our second-quarter financial performance goal.

Keep in mind that we track CASM monthly to help us monitor progress and work toward our quarterly CASM goal. We report monthly CASM results being as "At Goal," "Ahead of Goal," or "Behind Goal," as opposed to giving you a specific number. We do that because United and other carriers only report detailed financial results - including CASM - on a quarterly basis. Our second-quarter CASM tracking tools have been updated as "At Goal" for April to show that we are on track to meet our quarterly goal.

Just like we do for CASM, we also track our definite intent to repurchase or DIR performance monthly to help us monitor progress and work toward our quarterly goal. However unlike CASM, we report specific DIR numbers both monthly and quarterly, which can lead to some confusion.

To determine our quarterly performance, we take the average of three monthly performance results for that quarter. Therefore it's possible to have a month that's below goal, yet finish the quarter at or above goal. And that's exactly what happened in April. At 37.9 percent, our April DIR puts us slightly below our goal, yet we remain squarely on target to hit our second-quarter customer satisfaction goal.

While most North America drivers were at goal for April, all our international drivers performed below their April goals. We are exploring ways to improve customer experience at our international and U.S. gateway stations. As we head into the busy summer, I encourage you to stay focused on this important performance goal in May and June.

Finally, this month marked the 75th anniversary of the flight attendant profession. United is commemorating "75 Years of Safety and Service" with an article in the May issue of Hemispheres. It tells the story of our first flight attendants and includes an historical timeline of the profession. You can view archival photos by visiting our division's 75th anniversary site on SkyNet. Just click on the anniversary icon from the Onboard homepage.

As you may have experienced, the domiciles hosted a wide range of activities to recognize this important milestone. In Chicago, it was a meeting of flight attendants past and present as members of Clipped Wings were on hand to share stories of their careers. Much to the delight of their colleagues and customers, some flight attendants came to work in their vintage uniforms. One of your coworkers proudly wore the uniform she was hired in - 37 years ago!

Many stopped to look at historic photos and acknowledge the individuals who came before them. And despite the difficulties in our industry today, it was a week filled with shared memories, bits of nostalgia and immense pride. So to all of you, congratulations on 75 years of safety and service!

That's all for today. Fly safely, especially over this busy Memorial Day weekend, and I'll talk with you again next week.

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