Airtran posts 4th quarter profit of 1.9 million

[Ty Webb]

Some of you seem to struggle with the difference between an "operating profit" and "net profit".

I could make $100 million this quarter, but if I decide to buy back stock, pay off debt, give myself a big fat bonus and buy a new office building . . . guess what? No profit.

It's not that hard to understand . . . . unless you don't want to understand it. . . . . .

 

[S3sundowner]

deleted

 

[birdman1]

If there is an SLI. With a "profit" like that Gary may decide it aint worth it. Gup

Ya think so...man you better drop to your knees and pray this merger happens. That's the problem with you big Southwest guys. Ya never have been through any concessions, furloughs, or bankruptcy. There is a reason why the NWA/Delta merger was so successful. They have been through the school of hard knocks, and so has AirTran. Why is Gary buying them? You guys have some of the most expensive union contracts in the world. Southwest cannot afford it in the long run with companies like JetBlue, the legacies, and AirTran eating away at their profits. I think this will turn into another USAir/AWA debacle. The majors should prepare themselves for the kill. This just might be the opportunity to finally slaughter the two main low cost carriers in this industry.

 

[Bake]

Ty, you funny. NO, that's not the way it works.

 

[Hose A. Jiminez]

Some of you seem to struggle with the difference between an "operating profit" and "net profit".

I could make $100 million this quarter, but if I decide to buy back stock, pay off debt, give myself a big fat bonus and buy a new office building . . . guess what? No profit.

It's not that hard to understand . . . . unless you don't want to understand it. . . . . .

There is a difference between an income statement and a balance sheet. The IRS does not allow you to go out and buy a bunch of stuff (stock, office buildings and aircraft are all assets) or pay off stuff that you have already bought, or pay yourself in order to reduce profit. Trust me, I tried that.

 

[redflyer65]

Ya think so...man you better drop to your knees and pray this merger happens. That's the problem with you big Southwest guys. Ya never have been through any concessions, furloughs, or bankruptcy. There is a reason why the NWA/Delta merger was so successful. They have been through the school of hard knocks, and so has AirTran. Why is Gary buying them? You guys have some of the most expensive union contracts in the world. Southwest cannot afford it in the long run with companies like JetBlue, the legacies, and AirTran eating away at their profits. I think this will turn into another USAir/AWA debacle. The majors should prepare themselves for the kill. This just might be the opportunity to finally slaughter the two main low cost carriers in this industry.

I'm not so sure the NW/DL merger has turned out all that successful from a business stand point.

NINE fleet types with rising fuel cost is starting to creep in. Can you imagine the parts required to have on hand to operate they many different planes? Plus the simulators and sim time?

At least this acquistion doesn't have too much of that friction.

I see Gary using his Guadalupe Holdings 'get out of jail' card if he doesn't get the numbers and work force he's looking for..

He won't allow this to ruin SW. Don't see it happening. Herb won't either. He's still very involved at the GO. Still there most days of the week.

 

[texman]

I'm not so sure the NW/DL merger has turned out all that successful from a business stand point.

NINE fleet types with rising fuel cost is starting to creep in. Can you imagine the parts required to have on hand to operate they many different planes? Plus the simulators and sim time?

At least this acquistion doesn't have too much of that friction.

I see Gary using his Guadalupe Holdings 'get out of jail' card if he doesn't get the numbers and work force he's looking for..

He won't allow this to ruin SW. Don't see it happening. Herb won't either. He's still very involved at the GO. Still there most days of the week.

I agree, GK and company will take care of there own first. That's why I feel confident it will be good for all.

 

[Max Powers]

There is a difference between an income statement and a balance sheet. The IRS does not allow you to go out and buy a bunch of stuff (stock, office buildings and aircraft are all assets) or pay off stuff that you have already bought, or pay yourself in order to reduce profit. Trust me, I tried that.

Ummm Yes it does. It is called a (legal)write-off.

 

[FlyinGuy]

Y Southwest cannot afford it in the long run with companies like JetBlue, the legacies, and AirTran eating away at their profits.

Yep that 1.9 per quarter is going to sink the whole operation!

 

[Bake]

Ummmm, sorry Max but no they don't. Capital assets are depreciated over time, not written off.