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.

 

[BOYCAPTAIN]

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...

hey albie..he is just a dope!

 

[Yahtzee]

Who is swa/fo?

Does anyone besides swa/fo really know that he is a SWA FO? It wouldn't be like someone to impersonate on this forum now would it? Every pilot and FA I fly with any more is extremely thankful AND humble!

 

[ivauir]

Every few months an article like this comes out some one rejoices that SWA/FO will finally get his.

The fuel hedges have been key to our profitability for quite some time now. This is not news.

I hope that AA and others can get an industry leading contract really soon so that we can be out of the cross hairs.

 

[JoeMerchant]

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.

120%Tq.....what is your deal with Southwest and Skywest......You must hate companies that have managements who treat their people better than average and aren't ALPA.....I know you left Skywest....where did you go?

 

[120% Torque]

120%Tq.....what is your deal with Southwest and Skywest......You must hate companies that have managements who treat their people better than average and aren't ALPA.....I know you left Skywest....where did you go?

Cockiness and naivety are pilot attributes I do not admire. These are found in larger abundance at the aforementioned airlines than most others. I have friends at both these operations who are good, sophisticated, humble people. Unfortunately there are getting to be more and more of the other kind.

 

[murano]

Cockiness and naivety are pilot attributes I do not admire. These are found in larger abundance at the aforementioned airlines than most others. I have friends at both these operations who are good, sophisticated, humble people. Unfortunately there are getting to be more and more of the other kind.

Answered like a true politician...

 

[JoeMerchant]

Cockiness and naivety are pilot attributes I do not admire. These are found in larger abundance at the aforementioned airlines than most others. I have friends at both these operations who are good, sophisticated, humble people. Unfortunately there are getting to be more and more of the other kind.

You will find a high position for yourself in Herndon.....In addition to your allegiance to ALPA and hatred of Southwest and Skywest.....You know how to dodge questions.....

Who do you work for now? If "Cockiness and naivety are pilot attributes you don't admire".....then I hope you don't work for Delta, United, American, or Northwest....They wrote the book on cockiness.....

In fact, ALPA has fallen victim to cockiness and it is biting them in the A$$ every day.....

 

[DIAMONDDD]

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

737

swa/fo is to SWA as
General Lee is to DAL.

 

[General Lee]

swa/fo is to SWA as
General Lee is to DAL.

Hey, don't group me in with a tool like SWA/FO. I back up my claims with facts, baby! But it is amusing watching the SWA pilots get all crazy when someone actually says they wouldn't want to do their type of flying. You know---the 737 only, multiple leg days, with 25 minute turns, with the CHANCE of going to a hole like LBB or MAF type flying. No thanks, but I do think SWA is a great company overall! And if guys over there like it, well good for them. Ciao.

Bye Bye--General Lee

 

[ron burgundy]

Boils down to this! My company is better....my watch is bigger...I hope brand-x goes under...have you seen my house? The car I drive? I buy the F/A's drinks to make me look like a "big airline Captain"....we'll staple 'em...my penis is smaller and I "try" to compensate for it by posting inane bull$ll_ on FI. There was that ONE post,in some thread,in one of the forums,that was of substance. I feel like I am pretending to listen to the F/A's about what britney spears is doing today. WHAT ..excuse me....oh god,this just can't be....got it....thanks mark......This just in...Heath Ledger---Still dead!