Here we go LUV!!!

[Skybus]

http://biz.yahoo.com/ap/080724/earns_southwest.html

Beating estimates.

 

[SennaP1]

Let the Big Dog eat.
.

 

[Hutchman]

Too bad the company has to fly airplanes. If they didn't they would be making tons on money. See $500 million dollar gain from fuel hedging. I am not sure how good this news really is. Don't get me wrong, profits ARE good news. Especially right now. Congrats.

 

[B727Driver]

And employing 30,000+ with benefits, good wages, profitsharing, 401(k) that is matched by the company, no furloughs......the list goes on.

I guess they really do not know what they are doing.

Any better anywhere else? This sounds like good news compared to the rest of the industry.

 

[JT12345]

LUV got lucky is all.

They hedged for different reasons than having a crystal ball telling them oil would be $140 a barrel. Success in this industry is no longer about a solid business plan.

I will say that LUV made their luck.

 

[ivauir]

Too bad the company has to fly airplanes. If they didn't they would be making tons on money. See $500 million dollar gain from fuel hedging. I am not sure how good this news really is. Don't get me wrong, profits ARE good news. Especially right now. Congrats.

Seriously, don't speak on that which you have no knowledge. Ask yourself this:

Where does the money to buy the hedges come from?

How can people make statements like this quarter after quarter? Has SWA invented a financial self licking ice cream cone? A fuel hedges driven perpetual motion machine? Or is it possible that the hedges are part of a business strategy that is designed to survive a declining economy as well as flourish a prosperous one?

Can't wait to read the same stupid comments next quarter ...

 

[JT12345]

When oil was $40 a barrel and they hedged for $50 I heard the bean counterman who did it almost got fired. Guess he is a hero overthere now.

I will give you guys credit for having the spare cash to hedge when most companies were struggling.

For the legacies this has been the most shortlived turnaround. I think the hiring lasted less than a year.

 

[ASADFW7]

"I heard" great source.

It is true some of the stupidest comments are related to people who just can figure SWA out. Good Luck with that.

 

[airlinepilot]

You can bet the Management will not paint too pretty of a picture because the Pilot, FA's, rampers/agents and MX contracts are all in the works. The thing about no growth in 2009 is a shot at the pilot groupl because the company wanted to trade "growth for a pay freeze".

 

[Full of LUV]

It's not about spare cash, it's about smart bets....

When oil was $40 a barrel and they hedged for $50 I heard the bean counterman who did it almost got fired. Guess he is a hero overthere now.

I will give you guys credit for having the spare cash to hedge when most companies were struggling.

For the legacies this has been the most shortlived turnaround. I think the hiring lasted less than a year.

Actually, the hedges they have in place now are so valuable, the counter parties have to deposit huge sums of cash with SWA to ensure that the opposite bet is still good. This credit/ cash infusion allows the program to keep churning the investments for the future. Success breeds success. Obviously the only thing that could derail the program would be for oil to drop to $40 / barrell again, but then they would be paying a lot less on the fuel bill. Like Kelly said in the article, this insurance is less risky than going without hedges which is much more risky.
Bravo