61 of 73 new markets lose money for SWA

[Widow's Son]

YPF,

I wish I had met you earlier. I made about 250K last year and if I had only purchased 240k in gold coins I could have told the IRS that I only made 10K and saved myself a boatload of taxes. Damn.

Bearcat,

International flying makes money in good times and HEMMORAGES money in bad times. It's a great market and I'm sure that SWA will be cherry picking that soon, but there has to be a solid foundation to survive the inevitable world eruptions.
Did you see that President Bush today committed the USA to stopping the genocide in Darfur? The world is a powderkeg. Every major international incident since airlines began has taken airlines out with it, some quicker than others. Some regions go hot when others go cold, but all international flying backs off when there is a new international incident.
Latin America is hot right now, but Hugo Che Chavez and his marxist lapdogs can cure that in a hurry. The Orient is also hot, but Kim quite Ill can cure that one too.

 

[CA Calypso]

SW has never been non-operationally profitable since then, get your facts straight. Last year SW delivered
+$499 million operating profit
-$1.399 billion on equipment
-$809 million in stock buyback.
+ about $700 million on fuel options
total loss of $1 billion last year.
This year they are already down $500 million. They will need a loan to pay for the rest of their aircraft deliveries, or they can enter the payments into the cash flow and go into the red operationally.

Great, another pilot who is an "expert" analyzing financial statements...

 

[CA Calypso]

I don't even understand your question..... business purchases including aircraft are part of a corporate cash flow. If SW is out of cash on hand for paying for their liabilities they will have to take on long term debt. Certain transactions they pay cash for can't be moved into long term debt because they are ongoing expenses, i.e. advertising, perishables, etc. Southwest isn't the official carrier of the NFL for free ya know.

You don't understand shearedshafts' question because you have no idea what you are talking about. Study up on financial statements and pay particular attention to above the line and below the line and maybe it will become clearer.

 

[Benhuntn]

I have sold my trailer, big dish antenna, 4 dogs under the porch, my pickup truck and I am sending my wife back out on the streets. Hopefully she will pull us through this financial crisis at SWA. I am completely downsized and can't do anymore without moving in with my inlaws. Is 10 people in a 50' moblie home too many?

 

[momalley81]

SW has never been non-operationally profitable since then, get your facts straight. Last year SW delivered
+$499 million operating profit
-$1.399 billion on equipment
-$809 million in stock buyback.
+ about $700 million on fuel options
total loss of $1 billion last year.
This year they are already down $500 million. They will need a loan to pay for the rest of their aircraft deliveries, or they can enter the payments into the cash flow and go into the red operationally.

I have never read a poster on Flightinfo that is so incredibly stupid, yet talks like he honestly knows what he is talking about.

That quote above has got to be one of the dumbest and most ill-informed posts I have ever read on Flightinfo. And that is saying a lot!

 

[shearedshaft]

I don't even understand your question..... business purchases including aircraft are part of a corporate cash flow. If SW is out of cash on hand for paying for their liabilities they will have to take on long term debt. Certain transactions they pay cash for can't be moved into long term debt because they are ongoing expenses, i.e. advertising, perishables, etc. Southwest isn't the official carrier of the NFL for free ya know.

Yeah, you should have stayed quiet, this was even dumber. Are you talking "operating profit" (income statement) or are you talking cash flow (statement of cash flows). Or, are you talking debt (balance sheet). The three are related, but not in any way that you are trying to tie them together.

Look up "free cash flow" and do the math, then get back to us about your suppositions.

 

[ferlo]

SWA's stock has been sucking wind for about 5 years now...

 

[YourPilotFriend]

SWA's stock has been sucking wind for about 5 years now...

That's because it's selling rich.....$8 bucks is fair value.

 

[momalley81]

That's because it's selling rich.....$8 bucks is fair value.

And the hits just keep on coming!

 

[traffic pilot]

Guys

I am going to have to admit that I am the stupidest pilot in the business.
I read all the posts on this thread thinking I would gleen some good info or entertainment but that evil hanger witch sucked me in again.

I'm signing off for awhile. There's just nothing here for me anymore.

tp