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SWA- 90% Un-hedged through 2013

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No real news, here. If anyone thinks the recession hasn't hit home at good 'ol SWA, they just haven't been paying much attention....and they sure must not work here.

* Cash down to 1.3B. Live by the hedge--die by the hedge, as someone here so eloquently stated

* Stock price halved in the last six months.

* Selling aircraft and leasing back to generate $$$$$. I'd say that qualifies as being in a no-kiddin cash crunch.

* Stated zero-growth for '09 and bid lines paying about 10% less on average. With zero open time available.

Yes, it's definitely the winter of our discontent here too. About the only good thing one can say lately is no reductions in headcount (yet). Perfect conditions for the company to be in negotiations with ALL the unions, but that's another subject for another thread....

I still think the company is well positioned for the future, but it may get worse before it gets better (like everywhere else).

BTW, what's a contango, anyway?
 
From Wikipedia, the free encyclopedia

Contango is a term used in the futures market to describe an upward sloping forward curve (as in the normal yield curve). Such a forward curve is said to be "in contango" (or sometimes "contangoed").


Formally, it is the situation where, and the amount by which, the price of a commodity for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery.


The opposite market condition to contango is known as backwardation.


I personally thought it was a dance move, and was trying to figure out how it related to the subject. 8 yrs of college down the drain...
 
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What REALLY sucks is we don't have the cash to buy hedges with fuel under $40.

You're going to see an operating profit and a loss on paper of over ONE BILLION DOLLARS tomorrow.

Gary Kelly isn't living up to the hype.

Gup
 
WOW! Southwest is going to lose over a BILLION dollars? Holy moly! I knew you guys had a pretty big loss last quarter, but BILLION on top of that. Wow.
 
If you understood hedges you moron, you'd know what I was talking about with the estimation on the loss.

Gup
 
I was wondering the same thing but was afraid to ask
 
How many more quarters can the airlines have like this? United and SWA both bleeding billions per quarter...something has to give. I know there is no newhires for a couple of years at SWA....but is there even worse news looming?
 
If you understood hedges you moron, you'd know what I was talking about with the estimation on the loss.

Gup

Is this more of that "mark to market" accounting requirement, Gup?
 

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