Could this be the start of the END of Southwest Airlines?

[General Lee]

Southwest posts 3Q loss on fuel hedges

Southwest Airlines falls to 3Q loss on fuel-hedging charges, AirTran boosts revenue






David Koenig, AP Airlines Writer, On Thursday October 20, 2011, 11:24 am
DALLAS (AP) -- Southwest Airlines Co. suffered its first losing quarter in two years because its fuel-hedging bets turned sour when oil prices fell this summer.

But its fares rose and planes were packed. That helped the company's airline business make money in the third quarter
Southwest's results suggest that air travel is holding up despite nervousness that consumers and companies will cut back because of the weak economy.

The discount airline, which flies more U.S. passengers than anyone, said Thursday that bookings, including business travel, have remained strong into October. It predicted that revenue per passenger will keep rising in the last three months of the year.

Investors seemed to focus on travel demand and shrug off the hedging losses. The company's stock price rose 23 cents, or 2.6 percent, to $8.94 in morning trading.Southwest reported a third-quarter loss of $140 million, or 18 cents per share, compared with a profit of $205 million, or 27 cents per share, a year earlier.

The loss included $262 million in special items, including costs related to the purchase of AirTran Airways but mostly tied to fuel hedges that fell in value. Southwest's last losing quarter, in 2009, was also marked by fuel-hedging setbacks. Hedging is like insurance against a spike in oil prices; airlines use it to smooth out volatile energy prices.

Airlines must recalculate their hedges every quarter, and Southwest's lost value when crude prices fell by about one-sixth during the period. Southwest didn't lose cash, but must report the lower value on its books. With oil swinging up in recent weeks, Southwest said its hedges have regained some of the lost value.





Can't get away from those accounting charges. And look, the title says Airtran boosted revenues. Too bad the culture has been rocked.



Bye Bye---General Lee

 

[Amish RakeFight]

Vote No.

Keep the gates and cut the fat.

 

[Fubijaakr]

SWA's string of profits that fueled their growth was all based on fuel hedging. Looks like they bet wrong this time.

LOL!

 

[General Lee]

SWA's string of profits that fueled their growth was all based on fuel hedging. Looks like they bet wrong this time.

LOL!

The article said the loss was MOSTLY due to the fuel hedges, so they can't blame the trannies too much. Someone in Dallas is not running around yelling "check me out, I'm a cool corndog, and you're not!" I bet Herb and Colleen could be called in from retirement to talk to that hedger guy.......



Bye Bye---General Lee

 

[Amish RakeFight]

Mark-to-market.

 

[SWA Bubba]

Southwest posts 3Q loss on fuel hedges

Southwest Airlines falls to 3Q loss on fuel-hedging charges, AirTran boosts revenue






David Koenig, AP Airlines Writer, On Thursday October 20, 2011, 11:24 am
DALLAS (AP) -- Southwest Airlines Co. suffered its first losing quarter in two years because its fuel-hedging bets turned sour when oil prices fell this summer.

But its fares rose and planes were packed. That helped the company's airline business make money in the third quarter
Southwest's results suggest that air travel is holding up despite nervousness that consumers and companies will cut back because of the weak economy.

The discount airline, which flies more U.S. passengers than anyone, said Thursday that bookings, including business travel, have remained strong into October. It predicted that revenue per passenger will keep rising in the last three months of the year.

Investors seemed to focus on travel demand and shrug off the hedging losses. The company's stock price rose 23 cents, or 2.6 percent, to $8.94 in morning trading.Southwest reported a third-quarter loss of $140 million, or 18 cents per share, compared with a profit of $205 million, or 27 cents per share, a year earlier.

The loss included $262 million in special items, including costs related to the purchase of AirTran Airways but mostly tied to fuel hedges that fell in value. Southwest's last losing quarter, in 2009, was also marked by fuel-hedging setbacks. Hedging is like insurance against a spike in oil prices; airlines use it to smooth out volatile energy prices.

Airlines must recalculate their hedges every quarter, and Southwest's lost value when crude prices fell by about one-sixth during the period. Southwest didn't lose cash, but must report the lower value on its books. With oil swinging up in recent weeks, Southwest said its hedges have regained some of the lost value.





Can't get away from those accounting charges. And look, the title says Airtran boosted revenues. Too bad the culture has been rocked.



Bye Bye---General Lee

Good God! Did you or Fubi even read the text you quoted above? Doesn't seem like it. Good thing you guys fly fully automated airplanes, because it looks like you're too dumb to do math (or even read), so if your plane doesn't do it for you, you'd be screwed.

Lemme' help you out here: SWA made money flying airplanes in Q3. Get it? More than the analysts expected, as a matter of fact. We posted an overall loss due to the value of some of its assets (fuel hedges) decreasing. Not a cash loss, but an assest we haven't sold, repeat still have, was worth less in the 3rd quarter than it was in the second quarter. It's already gained some of its value back, due to oil prices increasing. It actually says that in the text you quoted above. I'm assuming you're not really this stupid, but rather are playing on the wording of the earnings statement just to bash SWA, as per your life's mission.

Let's recap, shall we? SWA has, in the last 20 years, posted a grand total of ONE quarter where we lost money flying airplanes. One. And it wasn't this year. It has posted a grand total of ZERO years in the last 38 where it has lost money for the year. Fubi: Our fuel hedges in years past added to our profits, not created them. We would have made money in those years without them. Look it up if you don't believe me. Tell us all about Alaska and Delta, please. How many quarters and years have YOU guys lost money? I'm kinda' curious.

I suppose I should answer the question posed by the thread. Uh, NO. This is not the "start of the end" for SWA. I mean, c'mon--you guys lose money all the friggin' time; no one wonders if it's the beginning of the end of you. Well, maybe your personal credibility, Fubi and OYS, but certainly not your airlines.

Bubba

 

[SWA Bubba]

The article said the loss was MOSTLY due to the fuel hedges, so they can't blame the trannies too much. Someone in Dallas is not running around yelling "check me out, I'm a cool corndog, and you're not!" I bet Herb and Colleen could be called in from retirement to talk to that hedger guy.......



Bye Bye---General Lee

The article ACTUALLLY said that a better-than-expected profit was turned into a paper loss due to the hedges. Maybe next time, you'll actually read the article you're quoting from. You won't look quite as dumb crowing about SWA's "impending downfall." But then again, probably not.

Bubba

 

[General Lee]

Good God! Did you or Fubi even read the text you quoted above? Doesn't seem like it. Good thing you guys fly fully automated airplanes, because it looks like you're too dumb to do math (or even read), so if your plane doesn't do it for you, you'd be screwed.

Lemme' help you out here: SWA made money flying airplanes in Q3. Get it? More than the analysts expected, as a matter of fact. We posted an overall loss due to the value of some of its assets (fuel hedges) decreasing. Not a cash loss, but an assest we haven't sold, repeat still have, was worth less in the 3rd quarter than it was in the second quarter. It's already gained some of its value back, due to oil prices increasing. It actually says that in the text you quoted above. I'm assuming you're not really this stupid, but rather are playing on the wording of the earnings statement just to bash SWA, as per your life's mission.

Let's recap, shall we? SWA has, in the last 20 years, posted a grand total of ONE quarter where we lost money flying airplanes. One. And it wasn't this year. It has posted a grand total of ZERO years in the last 38 where it has lost money for the year. Fubi: Our fuel hedges in years past added to our profits, not created them. We would have made money in those years without them. Look it up if you don't believe me. Tell us all about Alaska and Delta, please. How many quarters and years have YOU guys lost money? I'm kinda' curious.

I suppose I should answer the question posed by the thread. Uh, NO. This is not the "start of the end" for SWA. I mean, c'mon--you guys lose money all the friggin' time; no one wonders if it's the beginning of the end of you. Well, maybe your personal credibility, Fubi and OYS, but certainly not your airlines.

Bubba

Relax man. Everyone gets bit by the "one time charge" bug. DL had many of those during the BK process. Just go with the flow, and CHILLAX. But seriously, you (as a group) need to be nicer to your Airtran bros.


Bye Bye---General Lee

 

[Fubijaakr]

"We made money on airline operations." Nice. Good for you. However, your hedging erased that and added another $140M loss.

You can spin it any way you want, but a loss is a LOSS. Yikes.

 

[4day]

"We made money on airline operations." Nice. Good for you. However, your hedging erased that and added another $140M loss.

You can spin it any way you want, but a loss is a LOSS. Yikes.

Then why is the stock UP 5%? You need to realize a loss for it to mean anything. Madoff showed you that. CC said 300+ million was recouped from that Sept 30 figure. So no loss sorry, nut job.....