US Recession, it will effect your carrier

[CA1900]

So next time you English hacks decide to critique my content based on the English language verse the content of my thoughts, think again.

You might want to look that one up, too.

 

[PositiveRate]

Hey Andy...how's that Countrywide short working out for you? I hope you covered.

 

[LarryinTN]

I think...

Spend some time reading the articles on this site.

 

[LarryinTN]

And, of yeah, LUV is going to contine to lose pricing power.

Continue?

In a bit over a year they've gone from a max one-way fare of $299 to $349. That's a 17% increase over a period when inflation has been around 3%

The fares that I've been paying on SWA are up about 60%-70% over the past year due to the lower availability, and higher price, of the most discounted fares.

I write this as I'm waiting to board yet another completely full SWA flight out of ONT. I haven't been on a SWA flight with more than 5 or 10 empty seats in many months.

 

[Poahi]

Southwest has been doing relatively well, but even they are getting squeezed now. Like it or not, the revenue side is being driven now by international traffic and the network carriers are using regional aircraft effectively to compete with the LCC's and feed their hub operations. Delta and NWA are two prime examples. Higher fuel prices affect everyone, but where will the revenue growth be?

http://www.thestreet.com/s/southwes...alysis/transportation/10385180.html?puc=_tscs

 

[Jetjockey]

I just don't buy into the gloom and doom scenario of the economy. It will correct itself, most likely without much fanfare.

p.s. Andy. Did a limit purchase on (CFC) Countrywide yesterday at $12.50, and sold today at $17.47. The company announces a $1 billion loss, and their stock shoots up 33%. The canary is still singing away in that coal mine. What a country.

 

[PositiveRate]

Jetjockey...nice trade ;-) I hate shorts.

 

[Andy]

Hey Andy...how's that Countrywide short working out for you? I hope you covered.

Well, that one left a freaking mark. I covered most everything before the CC (it climbed during the CC); still holding a small short, but will cover that on Monday. Fortunately, it only wiped out my gains for the week. It had been a GREAT week; now it's a breakeven week.
I hate it when a company loses 50% more money than forecast and climbs >30% in a day. I still can't believe anyone would believe their forecast that they'll be profitable this quarter.

 

[Andy]

I just don't buy into the gloom and doom scenario of the economy. It will correct itself, most likely without much fanfare.

p.s. Andy. Did a limit purchase on (CFC) Countrywide yesterday at $12.50, and sold today at $17.47. The company announces a $1 billion loss, and their stock shoots up 33%. The canary is still singing away in that coal mine. What a country.

Nice trade. Glad to see someone made money today.

 

[luckytohaveajob]

Hear Jim Rogers talk first hand about how the dollar is plummeting and what effect it will have on your air carrier.

SWA can cock peck all they want around the chicken coop. The party is in its death throws now.

SWA only gets paid in dollars. International carriers get half their international fares in foreign currency. That is how an airline will survive the coming depression.

Euros, Yen, Yuan, and even Peso's are better than the dollar.

SWA is just not diverse enough to cope. I've seen billion dollar airlines lose billions in short periods of time. Hyperinflation is a bitch!


http://www.ft.com/cms/893ac9c8-757e-11dc-b7cb-0000779fd2ac.html

 

[luckytohaveajob]

Spend some time reading the articles on this site.

thanks for the link. SWA pilots are going to need some cheering up soon.

 

[Jetjockey]

Nice trade. Glad to see someone made money today.

Even a blind squirrel finds a nut once in a while.

Next long, (VG) Vonage. They just settled their second patent infringement lawsuit. Once they get this behind them, better days are ahead. Was trading around $1.98. We shall see.

Where's that stock message board? What was that advice I read here before. Never take investment advice from a pilot, and never fly with a doctor. Something like that.

 

[Draginass]

If you're junior on the seniority list, start preparing. This economy is all smoke and mirrors and is in for a severe correction, IMHO.

 

[Jetjockey]

If you're junior on the seniority list, start preparing. This economy is all smoke and mirrors and is in for a severe correction, IMHO.

Correction, yes. Severe correction....I don't think so.

 

[Poahi]

CNBC had a show last week on the crash of '87 and I only caught a part of it. They point out that no one knows for sure (20 years later) what caused the crash - they speculated about portfolio insurance, programed trading, etc...

But ultimately, it was about perceptions.The fundamentals hadn't changed that much and the market rebounded. Those who bought when the Dow dropped 500 points made a killing.