Swa Downgraded By Fitch

[lowecur]

Very comprehensive financial evaluation that includes lots of good information on projections. If I understand it correctly, WN ties up about $2B of the $2.8B in cash reserves with their fuel hedges. I assume this means as collateral. Could limit their latitude on acquisitions in 2008, but they do have a credit line of $600M. If they do get involved in an acquisition, they could be forced to sell some hedges or increase debt to maintain enough liquidity.

Fitch is not particularly happy WN repurchased stock for $500M. Although this was probably done to stabalize the price, they feel that WN should hang onto as much cash as possible.

imp:​

http://www.businesswire.com/portal/...d=news_view&newsId=20080124005677&newsLang=en

 

[clippyrip]

THIS WAS IN THE USA TODAY:

By posting a profit in 67 consecutive quarters, Southwest has set a standard for U.S. airlines. But is the airline's profitability streak be about to come to an end? The carrier is projected to turn a small profit during the current quarter, according to a Bloomberg News survey of Wall Street analysts, but Southwest CEO Gary Kelly warned rising fuel, labor, maintenance and airport costs are putting a squeeze on the carrier. "We are not planning for a loss,'' he said on a conference call with analysts and investors, according to Bloomberg News. "I'm not trying to alert or alarm anyone other than to say I can't give you a guarantee there won't be a loss in the first quarter.

 

[Whataburger]

Maby we've gotten smart. Set the analists hopes WAY low, then dazzle them with our first quarter. Might be a pipe dream, but if you watched or read the the presentation of numbers yesterday it paints a rosier picture. We'll see in April.

 

[clippyrip]

I hope you are right. It looks like SWA is starting to feel the pain the legacies feel as it grows and expands.

 

[SWA/FO]

Ironically, the talk of a possible loss comes as Southwest recorded its highest annual earnings ever in 2007, with a full-year profit of $645 million.

last sentence in the article.

 

[AlbieF15]

Also a nice time to have financial problems...about the same time pilots are negotiating future salaries.

"We all got pitch in and tighten' our belts, boys...."

SWA is a great company--great leadership. But even those great managers are still using some of the same playbook everyone else uses.

 

[AlbieF15]

Just read the article. Down to A minus? Hurt me. In this environment A minus equals pretty darn good...

 

[lowecur]

last sentence in the article.

Sooo, how long has it been without a contract? Sept will be 2 yrs, right?:laugh: ....I originally said 2 yrs, but I'm changing that to 4 yrs.

I think GL likes to point out that DL repurchased $2B in stock and it left DL without proper liquidity. WN is now at $1.8B since 2005. WN still has a good handle on the pulse of the business thanks to Gary, but what he does in the coming consolidation era will either enhance his image as superman or take him down a notch.

Thank God he has you to stear him in the right direction. Just think if you had ordered the 175 like I suggested, you'd be a CA by now.

imp:​

 

[MINIME]

LUV needs to probably grow to maintain its trajectory. But LUV needs new lucrative markets to grow into. They're out there, but they would have to muscle their way in. Or........convince, ally themselves to, or buy some of the competitors where those markets are currently located. Doing that would almost give them supremacy in the domestic market, no doubt. Then, perhaps start looking to expand outward, Puerto Rico, Mexico, Central and even South America. What ya think?

 

[SWAdude]

Thank God he has you to stear him in the right direction. Just think if you had ordered the 175 like I suggested, you'd be a CA by now.

imp:​

Thank god you don't run my airline.

 

[Whataburger]

Thank God he has you to stear him in the right direction. Just think if you had ordered the 175 like I suggested, you'd be a CA by now.

imp:​

Worked well for JetBlue right?

 

[SWA/FO]

I am a Capt... Southwest "only hires Captains"

 

[PCL_128]

<font color="blue">Sooo, how long has it been without a contract?

You need to stick to selling insurance. Your knowledge of RLA law is incredibly lacking, just like your knowledge of everything else related to aviation. RLA contracts don't expire, so the SWA pilots have not been "without a contract" at all. Their contract is merely amendable, meaning that it is still in full force until a new agreement can be reached. But hey, if we ever need to buy some term life insurance, then we'll get right back to you at your fancy cubicle.

 

[lowecur]

Thank god you don't run my airline.

You give an employee a little stock, and already it's his airline.

imp:​

 

[lowecur]

You need to stick to selling insurance. Your knowledge of RLA law is incredibly lacking, just like your knowledge of everything else related to aviation. RLA contracts don't expire, so the SWA pilots have not been "without a contract" at all. Their contract is merely amendable, meaning that it is still in full force until a new agreement can be reached. But hey, if we ever need to buy some term life insurance, then we'll get right back to you at your fancy cubicle.

Yeah, yeah, WHATEVER YOU SAY MR. ANAL. Now go spit on a tissue and clean yourself up.

imp:​