Could this be the start of the END of Southwest Airlines?

[General Lee]

Southwest posts 3Q loss on fuel hedges

Southwest Airlines falls to 3Q loss on fuel-hedging charges, AirTran boosts revenue






David Koenig, AP Airlines Writer, On Thursday October 20, 2011, 11:24 am
DALLAS (AP) -- Southwest Airlines Co. suffered its first losing quarter in two years because its fuel-hedging bets turned sour when oil prices fell this summer.

But its fares rose and planes were packed. That helped the company's airline business make money in the third quarter
Southwest's results suggest that air travel is holding up despite nervousness that consumers and companies will cut back because of the weak economy.

The discount airline, which flies more U.S. passengers than anyone, said Thursday that bookings, including business travel, have remained strong into October. It predicted that revenue per passenger will keep rising in the last three months of the year.

Investors seemed to focus on travel demand and shrug off the hedging losses. The company's stock price rose 23 cents, or 2.6 percent, to $8.94 in morning trading.Southwest reported a third-quarter loss of $140 million, or 18 cents per share, compared with a profit of $205 million, or 27 cents per share, a year earlier.

The loss included $262 million in special items, including costs related to the purchase of AirTran Airways but mostly tied to fuel hedges that fell in value. Southwest's last losing quarter, in 2009, was also marked by fuel-hedging setbacks. Hedging is like insurance against a spike in oil prices; airlines use it to smooth out volatile energy prices.

Airlines must recalculate their hedges every quarter, and Southwest's lost value when crude prices fell by about one-sixth during the period. Southwest didn't lose cash, but must report the lower value on its books. With oil swinging up in recent weeks, Southwest said its hedges have regained some of the lost value.





Can't get away from those accounting charges. And look, the title says Airtran boosted revenues. Too bad the culture has been rocked.



Bye Bye---General Lee

 

[Amish RakeFight]

Vote No.

Keep the gates and cut the fat.

 

[Fubijaakr]

SWA's string of profits that fueled their growth was all based on fuel hedging. Looks like they bet wrong this time.

LOL!

 

[General Lee]

SWA's string of profits that fueled their growth was all based on fuel hedging. Looks like they bet wrong this time.

LOL!

The article said the loss was MOSTLY due to the fuel hedges, so they can't blame the trannies too much. Someone in Dallas is not running around yelling "check me out, I'm a cool corndog, and you're not!" I bet Herb and Colleen could be called in from retirement to talk to that hedger guy.......



Bye Bye---General Lee

 

[Amish RakeFight]

Mark-to-market.

 

[SWA Bubba]

Southwest posts 3Q loss on fuel hedges

Southwest Airlines falls to 3Q loss on fuel-hedging charges, AirTran boosts revenue






David Koenig, AP Airlines Writer, On Thursday October 20, 2011, 11:24 am
DALLAS (AP) -- Southwest Airlines Co. suffered its first losing quarter in two years because its fuel-hedging bets turned sour when oil prices fell this summer.

But its fares rose and planes were packed. That helped the company's airline business make money in the third quarter
Southwest's results suggest that air travel is holding up despite nervousness that consumers and companies will cut back because of the weak economy.

The discount airline, which flies more U.S. passengers than anyone, said Thursday that bookings, including business travel, have remained strong into October. It predicted that revenue per passenger will keep rising in the last three months of the year.

Investors seemed to focus on travel demand and shrug off the hedging losses. The company's stock price rose 23 cents, or 2.6 percent, to $8.94 in morning trading.Southwest reported a third-quarter loss of $140 million, or 18 cents per share, compared with a profit of $205 million, or 27 cents per share, a year earlier.

The loss included $262 million in special items, including costs related to the purchase of AirTran Airways but mostly tied to fuel hedges that fell in value. Southwest's last losing quarter, in 2009, was also marked by fuel-hedging setbacks. Hedging is like insurance against a spike in oil prices; airlines use it to smooth out volatile energy prices.

Airlines must recalculate their hedges every quarter, and Southwest's lost value when crude prices fell by about one-sixth during the period. Southwest didn't lose cash, but must report the lower value on its books. With oil swinging up in recent weeks, Southwest said its hedges have regained some of the lost value.





Can't get away from those accounting charges. And look, the title says Airtran boosted revenues. Too bad the culture has been rocked.



Bye Bye---General Lee

Good God! Did you or Fubi even read the text you quoted above? Doesn't seem like it. Good thing you guys fly fully automated airplanes, because it looks like you're too dumb to do math (or even read), so if your plane doesn't do it for you, you'd be screwed.

Lemme' help you out here: SWA made money flying airplanes in Q3. Get it? More than the analysts expected, as a matter of fact. We posted an overall loss due to the value of some of its assets (fuel hedges) decreasing. Not a cash loss, but an assest we haven't sold, repeat still have, was worth less in the 3rd quarter than it was in the second quarter. It's already gained some of its value back, due to oil prices increasing. It actually says that in the text you quoted above. I'm assuming you're not really this stupid, but rather are playing on the wording of the earnings statement just to bash SWA, as per your life's mission.

Let's recap, shall we? SWA has, in the last 20 years, posted a grand total of ONE quarter where we lost money flying airplanes. One. And it wasn't this year. It has posted a grand total of ZERO years in the last 38 where it has lost money for the year. Fubi: Our fuel hedges in years past added to our profits, not created them. We would have made money in those years without them. Look it up if you don't believe me. Tell us all about Alaska and Delta, please. How many quarters and years have YOU guys lost money? I'm kinda' curious.

I suppose I should answer the question posed by the thread. Uh, NO. This is not the "start of the end" for SWA. I mean, c'mon--you guys lose money all the friggin' time; no one wonders if it's the beginning of the end of you. Well, maybe your personal credibility, Fubi and OYS, but certainly not your airlines.

Bubba

 

[SWA Bubba]

The article said the loss was MOSTLY due to the fuel hedges, so they can't blame the trannies too much. Someone in Dallas is not running around yelling "check me out, I'm a cool corndog, and you're not!" I bet Herb and Colleen could be called in from retirement to talk to that hedger guy.......



Bye Bye---General Lee

The article ACTUALLLY said that a better-than-expected profit was turned into a paper loss due to the hedges. Maybe next time, you'll actually read the article you're quoting from. You won't look quite as dumb crowing about SWA's "impending downfall." But then again, probably not.

Bubba

 

[General Lee]

Good God! Did you or Fubi even read the text you quoted above? Doesn't seem like it. Good thing you guys fly fully automated airplanes, because it looks like you're too dumb to do math (or even read), so if your plane doesn't do it for you, you'd be screwed.

Lemme' help you out here: SWA made money flying airplanes in Q3. Get it? More than the analysts expected, as a matter of fact. We posted an overall loss due to the value of some of its assets (fuel hedges) decreasing. Not a cash loss, but an assest we haven't sold, repeat still have, was worth less in the 3rd quarter than it was in the second quarter. It's already gained some of its value back, due to oil prices increasing. It actually says that in the text you quoted above. I'm assuming you're not really this stupid, but rather are playing on the wording of the earnings statement just to bash SWA, as per your life's mission.

Let's recap, shall we? SWA has, in the last 20 years, posted a grand total of ONE quarter where we lost money flying airplanes. One. And it wasn't this year. It has posted a grand total of ZERO years in the last 38 where it has lost money for the year. Fubi: Our fuel hedges in years past added to our profits, not created them. We would have made money in those years without them. Look it up if you don't believe me. Tell us all about Alaska and Delta, please. How many quarters and years have YOU guys lost money? I'm kinda' curious.

I suppose I should answer the question posed by the thread. Uh, NO. This is not the "start of the end" for SWA. I mean, c'mon--you guys lose money all the friggin' time; no one wonders if it's the beginning of the end of you. Well, maybe your personal credibility, Fubi and OYS, but certainly not your airlines.

Bubba

Relax man. Everyone gets bit by the "one time charge" bug. DL had many of those during the BK process. Just go with the flow, and CHILLAX. But seriously, you (as a group) need to be nicer to your Airtran bros.


Bye Bye---General Lee

 

[Fubijaakr]

"We made money on airline operations." Nice. Good for you. However, your hedging erased that and added another $140M loss.

You can spin it any way you want, but a loss is a LOSS. Yikes.

 

[4day]

"We made money on airline operations." Nice. Good for you. However, your hedging erased that and added another $140M loss.

You can spin it any way you want, but a loss is a LOSS. Yikes.

Then why is the stock UP 5%? You need to realize a loss for it to mean anything. Madoff showed you that. CC said 300+ million was recouped from that Sept 30 figure. So no loss sorry, nut job.....

 

[Fubijaakr]

Again...5% of $8 = FORTY CENTS. Wow!

 

[Sy-bill]

I don't get it. Why does General Lee, OYS and Fubijaakr hate Southwest Airlines?

None of the posters here seem to hate any other airline but those three make it quite obvious that they hate Southwest. I really don't understand.

 

[TahoeBoarder]

5% of LUV's market cap of 7.3 Billion is $365,000,000.
Pretty soon we might actually start talking about some real $$$

Fubi, please tell me you pay for some financial advice.

 

[canyonblue]

I don't get it. Why does General Lee, OYS and Fubijaakr hate Southwest Airlines?

None of the posters here seem to hate any other airline but those three make it quite obvious that they hate Southwest. I really don't understand.

Interview process weeded them out, pure and simple. Of course they will never admit it, but it is a proven fact. Just wait, they will post on this thread again proving their repudiation by Southwest. LOSERVILLE is missing a few idiots.

 

[Whataburger]

Wasn't it in 2004 when Delta lost BILLIONs?

A BILLLION is a THOUSAND MILLION.

Yall lost THOUSANDS of MILLIONS of dollars in the first decade of this century.

So...

...NO, I don't believe this is the beginning of the end of SWA.

 

[Data]

In other news, Southwest pilots still make more than Delta pilots flying heavy equipment on international routes.

 

[Whataburger]

Yes we lost money, BUT...

Southwest posts 3Q loss on fuel hedges

Southwest Airlines falls to 3Q loss on fuel-hedging charges, AirTran boosts revenue






David Koenig, AP Airlines Writer, On Thursday October 20, 2011, 11:24 am
DALLAS (AP) -- Southwest Airlines Co. suffered its first losing quarter in two years because its fuel-hedging bets turned sour when oil prices fell this summer.

But its fares rose and planes were packed. That helped the company's airline business make money in the third quarter
Southwest's results suggest that air travel is holding up despite nervousness that consumers and companies will cut back because of the weak economy.

The discount airline, which flies more U.S. passengers than anyone, said Thursday that bookings, including business travel, have remained strong into October. It predicted that revenue per passenger will keep rising in the last three months of the year.

Investors seemed to focus on travel demand and shrug off the hedging losses. The company's stock price rose 23 cents, or 2.6 percent, to $8.94 in morning trading.Southwest reported a third-quarter loss of $140 million, or 18 cents per share, compared with a profit of $205 million, or 27 cents per share, a year earlier.

The loss included $262 million in special items, including costs related to the purchase of AirTran Airways but mostly tied to fuel hedges that fell in value. Southwest's last losing quarter, in 2009, was also marked by fuel-hedging setbacks. Hedging is like insurance against a spike in oil prices; airlines use it to smooth out volatile energy prices.

Airlines must recalculate their hedges every quarter, and Southwest's lost value when crude prices fell by about one-sixth during the period. Southwest didn't lose cash, but must report the lower value on its books. With oil swinging up in recent weeks, Southwest said its hedges have regained some of the lost value.





Can't get away from those accounting charges. And look, the title says Airtran boosted revenues. Too bad the culture has been rocked.



Bye Bye---General Lee

So, nope, not the beginning of the end. It's just a losing 3rd quarter that will not prevent a profitable entire year. It would be a shame to let this quarter prevent 40 straight years of profitability.

Yes the culture has been rocked, but just like anything else, stablility is in our future.

 

[Whataburger]

In other news, Southwest pilots(FO's flying to LBB) still make more than Delta pilots(CA's) flying heavy equipment on international routes.

Your news was off just a bit.

 

[SWAdude]

Good lord!

What kind of sick f*** would start such a thread.

Are you so hateful that you would love to see the demise of 45,000 families livelihood?

I would not wish that for anyone or company. You may think you can use a moniker and that does not reflect on your character but you are sorely wrong. Your character is who YOU have to live with, not anyone else.

You are one lame excuse for a human being. Really. Allow that to sink in for a moment.

By the by, SWA and Delta will both do just fine. Both are financially healthy and offer a good product to its customers. Not that you deserve the privilege to work for either company. You represent Delta in a horrible light and I have no doubt they would not have hired you if they had a hint at how you represent that good company. You are one that I have absolutely have no doubt is viewed as one that slipped through the cracks.

Truly pathetic.

 

[On Your Six]

In other news, Southwest pilots still make more than Delta pilots flying heavy equipment on international routes.

Not if your hedging continues to be bad. You guys and American really had a bad one!


Godspeed!


OYS