LUV Stock Dropping?

[Captzaahlie]

Our hedges ran out last night at midnight...

You got a laugh outta me on that one.....:laugh:

 

[lowecur]

The difference is that we already serve the Dallas and Chicago market. So keep trying but you need better logic than just spouting off DEN PHL SFO ect.

You also serve 3 other airports around LAX, one around SFO, and one around BWI. Now does that make sense?

DIA, SFO, IAD, and PHL were all entered into to put a hurt'n on a specific carrier. My point is that LUV's strategy on entering into a new market changed when Gary decided to head into Philly. With the 737, he had connected all the dots he could. His next strategic step was to head into PHL, to hurry along US into BK (did not work). Next he went into DIA and IAD to put a hurt'n on both UAL and FRNT (it's working but both carriers have bought themselves some more time). SFO was a block to both VX and B6. More VX, as they want them gone.

D/FW and ORD would be just more moves on the chessboard to hurry along carriers that are walking on one leg. Will they do it? Who knows, but it wouldn't surprise me.

imp:​

 

[Captzaahlie]

Not that I very often agree with Lowcures line of thought what he says in this case makes a lot of sense....
SWA is filling in the gaps and taking as much as the other airlines give up. There is very little doubt about that. I think you'll see them do it at an even faster rate here in the future.

 

[Beetle007]

How much has the value of Southwest's fuel hedges dropped in the past 2 weeks? I imagine their short term investment capital has dropped significantly.

Thats the darned thing about fuel hedges. You make money when fuel is on its way up. And you lose money when fuel is on its way down (or flat for that matter).

 

[Old School]

LUV is unchanged today while the XAL index is down 8%. I don't put much weight into day to day prices. Look at the bigger trends and look at projected earnings per share. LUV trades at 17 times annual earnings per share.