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

 

[YourPilotFriend]

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.

Time will tell, and SW is going up.

 

[The Victors]

Again you so called aviators are total idiots. Yes, lets all bash swa, come on, lets bash the only profitable airline that still pays its employees a decent wage and actually pays its bills. Wow!!!!!!!!!! What a concept. Lets be good to our employees and pay them well and pay all our bills and still scratch out a profit in this tough market. No screw swa. They suck. idiots. Maybe we'll all get what we're wishing for; Swa will lose money and their employees will have to take a pay cut down to our level. Yes, that's the ticket. Lets bring everyone down to our level.

 

[capt. megadeth]

All my friends are leaving jb for swa, or want to leave jb for swa -- that must mean the end of swa is near.

What's your point? In early 2001, guys were leaving SWA for United. All that tells me is that pilots go for the flavor of the month. I swear pilot's have no long term memory whatsoever.....along with the rest of America.

 

[capt. megadeth]

Hey!!!!!!!!!!!! Where's my lover? The SWA/FO?????

He must be busy in upgrade!

 

[jonjuan]

What's your point? In early 2001, guys were leaving SWA for United. All that tells me is that pilots go for the flavor of the month. I swear pilot's have no long term memory whatsoever.....along with the rest of America.

Well to be accurate, WN has been the flavor of the past 68 months and counting......

 

[ultrarunner]

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

That's the main reason for the stock buy back program. Their growth has not been profitable enough to increase shareholder value.

In SWA's case, the stock buy back program is only a short-term answer to bolster the stock price and keep investors at bay. There is only so much free cash and revolving debt available to buy your own stock.

SWA will need some very profitable growth or the investors will start bailing.

 

[LeonPhelps]

Again you so called aviators are total idiots. Yes, lets all bash swa, come on, lets bash the only profitable airline that still pays its employees a decent wage and actually pays its bills. Wow!!!!!!!!!! What a concept. Lets be good to our employees and pay them well and pay all our bills and still scratch out a profit in this tough market. No screw swa. They suck. idiots. Maybe we'll all get what we're wishing for; Swa will lose money and their employees will have to take a pay cut down to our level. Yes, that's the ticket. Lets bring everyone down to our level.

Amen brother! You read this post, and would think that everyone would be thrilled if SWA went under. Boy, that would be one final kick in the Jimmy in an industry where they hand those out(jimmy kicks) like candy. Wouldn't it benefit everyone if a company that pays people well, treats them even better succeeds? Wouldn't that put pressure on the other fart knockers to start paying well and treating people well? I guess you want the bastion of good pay/good treatment to go away so that there is no hope? Good thinkin'...

 

[Bavarian Chef]

What's your point? In early 2001, guys were leaving SWA for United. All that tells me is that pilots go for the flavor of the month. I swear pilot's have no long term memory whatsoever.....along with the rest of America.

It's a joke. Are you trying to draw attention away from your ginormous a$$ again or has flying boxes dulled your senses?

That's a joke too. I think.

 

[capt. megadeth]

Well to be accurate, WN has been the flavor of the past 68 months and counting......

Ok???? What's your point? UAL was the flavor of the month for a while before 9/11 too. Now SWA, UPS and FedEx are......what will it be in 3, 5, 7 years is anyone's guess but I am sure we will be hearing "ooooh, I've always wanted to fly for ____".....uh, huh....riiiiight!

 

[capt. megadeth]

It's a joke. Are you trying to draw attention away from your ginormous a$$ again or has flying boxes dulled your senses?

That's a joke too. I think.

Yep, being off all the time has dulled my senses......AND made my size 16 a 20 cuz I have nothing to do but eat my crew meals and bon bons...!