Delta 3rd Quarter profit

[Whataburger]

So why isn't SWA posting a 3Q profit like DAL?

It's a marathon, not a sprint. Small profits and no furloughs coupled with a loss every now and then is better than $500mil profits coupled with furloughs and bankruptcies now and then.

 

[waveflyer]

An MBA would say delta's smart-
Instead of 4 quarters of $100M profit that would let labor groups negotiate the length of the RLA from stability- kill it one quarter at $500M, then lose $33M for the next 3 and they can argue they're hurting....

 

[Lucky Strike]

1Q 2011: $158mil
2Q 2011: $198mil
3Q 2011 $549mil

Expecting strong 4Q numbers.

 

[Mach 80]

Delta pilot runs to the SWA gate to grap a jumpseat. It's push time but the agent held the plane a minute and got him on. They close the a/c door right behind him as he gets on. He quickly checks in with cockpit and the SWA pilots tell him they are glad to help him out and to grab a seat. F/A tells him there's a seat available in the exit row and they start their pushback right after the Delta pilot gets in the exit row seat.

How does this schmuck repay SWA's kindness? He writes a letter to the FAA telling them he didn't get an "exit row briefing" from the F/A. The F/A nearly gets fired over it.

 

[formerdal]

Delta pilot runs to the SWA gate to grap a jumpseat. It's push time but the agent held the plane a minute and got him on. They close the a/c door right behind him as he gets on. He quickly checks in with cockpit and the SWA pilots tell him they are glad to help him out and to grab a seat. F/A tells him there's a seat available in the exit row and they start their pushback right after the Delta pilot gets in the exit row seat.

How does this schmuck repay SWA's kindness? He writes a letter to the FAA telling them he didn't get an "exit row briefing" from the F/A. The F/A nearly gets fired over it.

Complete BS!

 

[nwaf16dude]

Delta pilot runs to the SWA gate to grap a jumpseat. It's push time but the agent held the plane a minute and got him on. They close the a/c door right behind him as he gets on. He quickly checks in with cockpit and the SWA pilots tell him they are glad to help him out and to grab a seat. F/A tells him there's a seat available in the exit row and they start their pushback right after the Delta pilot gets in the exit row seat.

How does this schmuck repay SWA's kindness? He writes a letter to the FAA telling them he didn't get an "exit row briefing" from the F/A. The F/A nearly gets fired over it.

If that were true, I would personally kick him in the balls. That being said...sounds like a urban legend to me. Give us a date and name and our jumpseat committee will take care of it.

 

[Mach 80]

If/when I see the F/A again I'll try to find out more.

 

[FDJ2]

It's a marathon, not a sprint. Small profits and no furloughs coupled with a loss every now and then is better than $500mil profits coupled with furloughs and bankruptcies now and then.

Hmmm, sounds like an airline I once knew.

Don't live in the rear view mirror, because you won't see what's coming.

 

[FDJ2]

Your focusing on a grain of sand on the beach with one quarter of lower profits for this quarter..its a marathon, not sprint.

Put it against the backdrop of 40yrs of year over year profit and the debit to equity ratio becomes painfully important.

Low debt will always win out in the long run. Disagree?

It's about whether you're profitable, or not. You can tout about a low debt to equity ratio all you want and a history of profitability, but if you post a loss, it doesn't matter much, you still loss money when others were posting profits.

What should have you more concerned is the fact that despite a low debt to equity ratio (very little interest payments) SWA posted a loss in the third quarter, a traditionally profitable quarter. Meanwhile the competition is making money, lowering debt and lowering interest payments. Good luck with your merger, I'm sure SWA will be firing on all cylinders as you integrate a justifiably p.o. workforce.

 

[SWA Bubba]

Q

It's about whether you're profitable, or not. You can tout about a low debt to equity ratio all you want and a history of profitability, but if you post a loss, it doesn't matter much, you still loss money when others were posting profits.

What should have you more concerned is the fact that despite a low debt to equity ratio (very little interest payments) SWA posted a loss in the third quarter, a traditionally profitable quarter. Meanwhile the competition is making money, lowering debt and lowering interest payments. Good luck with your merger, I'm sure SWA will be firing on all cylinders as you integrate a justifiably p.o. workforce.

Careful, FDJ2, you're starting to sound a little like Fubi and OYS. Trust me--you don't want that.

Thanks for your concern, but I personally am not concerned one little bit that "SWA posted a loss in the third quarter, a traditionally profitable quarter." Not in the slightest. You guys have turned this thread (and the sister thread about "the end of SWA" started by one of the biggest knuckleheads on the forum) into a glee-fest about SWA "losing money." Newsflash--we didn't lose any money in the third quarter. Not a dime. In fact we made lots of money flying airplanes, and the fourth quarter looks strong as well.

The "loss" some of you guys gloat over is the result of financial reporting rules. Tell you what--I'll explain it to you the way I explained it to my nephew. Let's say you buy a Rembrandt painting for $1M. We'll say that's what it's worth. Next quarter it's worth $800k on the market. With these rules you'd be required to post a $200k loss, even though you still have the painting and haven't actually "lost" anything. The following quarter, let's say it's worth $1M again. That quarter, you'd post a profit of $200k. However, you still have the asset, and you've nether "made" nor "lost" a single penny until you actually sell the damn thing. Make sense? That's the deal with fuel hedges. The hedges that "lost" money in Q3 (ironically, due to fuel prices decreasing), have already "gained" again (due to oil prices on the rise), and regardless, we still have them (they're longer term), so we haven't actually "gained" or "lost" a damned thing yet.

That's why no one who knows the first thing about money was bothered by this "loss." Because it wasn't a real loss. Despite some FI pundits shouting to the contrary, its means diddly-dick to the actual health and prospects of the company. Less than diddly-dick, actually. Nobody cares. I don't care (because my profit sharing is based only on operating profits, so -I- made extra money in Q3), the company doesn't care, the board doesn't care, and more importantly, Wall Street doesn't care. Wall Street was actually happy that we beat expectations on profit flying planes.

The only people who seem to care are the trolls who like to harp on forums like this, so they have another way to rag on SWA. Well, knock yourselves out... but please realize that people who know about how the real financial world works, know that you're just blowing smoke.

Delta made money flying airplanes this quarter (and year, for that matter). Good for you. I hope you keep it up. However, SWA also made money flying airplanes for the quarter (as usual). Good for us. If a "loss" on fuel hedge fluctuations is the best SWA haters can come up with to rag on us about, than I'd say we're doing pretty good.

Bubba