Could Southwest's run of profitability be coming to an end?

[Lampshade]

I know this has been beaten to death but this the first time I've read SWA management mention it. Not a good sign for all airlines if true.

http://blogs.usatoday.com/sky/2008/01/southwest.html

 

[120% Torque]

I know this has been beaten to death but this the first time I've read SWA management mention it. Not a good sign for all airlines if true.

http://blogs.usatoday.com/sky/2008/01/southwest.html

Well I think this quote is a tell tell sign:

"We would not have made money in the fourth quarter if not for fuel-hedging gains," the Fort Worth Star-Telegram (free registration) quotes Kelly as saying on the conference call. Kelly said the airline's fuel hedges boosted the carrier's bottom line by $300 million in the quarter.

Southwest doesn't have the competative advantage to the extent it once did. Previously they were the lowest cost carrier, could swoop in to almost any city, USA and undercut whoever and make an easy buck while growing. With a saturated domestic market, no real international flying to speak of and lower cost carriers who have more ammenities things are different now. Also the majors/legacies drastically reduced their operating costs. The saving grace of Southwest right now is its fuel hedges and lower debt. Even with the lower debt it is a bad sign that without fuel hedges they would have lost money last quarter. On a separate note the pilots at southwest are very reminiscent of the pilots of United back in 2000, very outspoken about how they are paid more than everybody else and thinking they are invincible. Time will tell. For right now though their eggs are all in one basket and the bottom of that basket is now made of wet tissue paper.

 

[huronip]

Well I think this quote is a tell tell sign:

"We would not have made money in the fourth quarter if not for fuel-hedging gains," the Fort Worth Star-Telegram (free registration) quotes Kelly as saying on the conference call. Kelly said the airline's fuel hedges boosted the carrier's bottom line by $300 million in the quarter.

Southwest doesn't have the competative advantage to the extent it once did. Previously they were the lowest cost carrier, could swoop in to almost any city, USA and undercut whoever and make an easy buck while growing. With a saturated domestic market, no real international flying to speak of and lower cost carriers who have more ammenities things are different now. Also the majors/legacies drastically reduced their operating costs. The saving grace of Southwest right now is its fuel hedges and lower debt. Even with the lower debt it is a bad sign that without fuel hedges they would have lost money last quarter. On a separate note the pilots at southwest are very reminiscent of the pilots of United back in 2000, very outspoken about how they are paid more than everybody else and thinking they are invinceable. Time will tell. For right now though their eggs are all in one basket and the bottom of that basket is now made of wet tissue paper.

Do you mean invincible? Those Southwest pilots that you speak of as thinking they are "invinceable" are a very small minority of the pilots at Southwest. I think that the majority of us feel that we are very fortunate and nothing more.

 

[120% Torque]

Do you mean invincible? Those Southwest pilots that you speak of as thinking they are "invinceable" are a very small minority of the pilots at Southwest. I think that the majority of us feel that we are very fortunate and nothing more.

Well good luck to you. It gets nausiating to see some who come on here bragging about their pay. Yet their pay is a fraction of what the legacies used to make. Maybe Southwest is the flavor of the month and I wish continued success. I hope they get pay raises in their next contract. I have a feeling the "invincible" people working at southwest are in for a rude awakening however.

 

[huronip]

Well good luck to you. It gets nausiating to see some who come on here bragging about their pay. Yet their pay is a fraction of what the legacies used to make. Maybe Southwest is the flavor of the month and I wish continued success. I hope they get pay raises in their next contract. I have a feeling the "invincible" people working at southwest are in for a rude awakening however.

If way get a pay raise it will only be a COLA. I think the majority of us realize that.

 

[Tank68]

Man, if you let this web site actuall make you sick, you should get a new hobby. For more than a few, pissing people off on FI is a sport. Actual usefull info is hard to find. I can tell you I would never actually pay to get on this sight. I do find humor in it and when I read something I know is meant to get a rise out of me I laugh it off.

As for those SWA guys, believe me we know times are tough. I am happy with my pay but I do not wish to be the highest paid. Cost of living and a few improvements in the work rules is all I expect from the next contract.

just remember it is just a web site. wishing harm to a group of people because of a few comments you read on fi is kinda sad.

 

[737 Pylt]

Do you mean invincible? Those Southwest pilots that you speak of as thinking they are "invinceable" are a very small minority of the pilots at Southwest. I think that the majority of us feel that we are very fortunate and nothing more.

Perhaps you've never met the infamous swa/fo!

737

 

[AlbieF15]

Perhaps you've never met the infamous swa/fo!

737

His ability to push some folks' buttons is nothing less than pure performance art. He is a rare and talented artist, and his handiwork creates long threads, angst, and grinding teeth.

Watching from afar, however, can be humorous...

 

[whoknows]

His ability to push some folks' buttons is nothing less than pure performance art. He is a rare and talented artist, and his handiwork creates long threads, angst, and grinding teeth.

Watching from afar, however, can be humorous...

Well I guess Albie is out of the closet. Is your partner, swa/fo okay with this?

 

[The Victors]

I know this has been beaten to death but this the first time I've read SWA management mention it. Not a good sign for all airlines if true.

http://blogs.usatoday.com/sky/2008/01/southwest.html

Believe me you dont want to wish for swa pilots to take a pay cut. They are the only group in the passenger airlines holding the line of what pilots should be making.