Southwest Airlines Raises Fares Again

[FlyBoeingJets]

...I can compare SWA with any bankrupt legacy because they were restructured as LCC's. Operation costs at NWA are very comparable to that at SWA. The only advantage SWA has on the current markets is its fuel hedges...

...NWA has a higher load factor...

I'll believe it when we see the CASM info on a quarterly report. Everyone said UAL would have SWA type CASM and they aren't even close.

Does NWA have a contract restriction from bidding a different plane every 2 years??? NWA will also have a ton of folks in training as they replace their aging fleet. I wouldn't bet on the CASM coming down that much.

Load factors, eh? Check out the load factors in June and July. Commuting has never been harder at SWA and I can't imagine load factors (on the stuff I fly) getting any higher.

 

[SWAdude]

I can compare SWA with any bankrupt legacy because they were restructured as LCC's. Operation costs at NWA are very comparable to that at SWA. The only advantage SWA has on the current markets is its fuel hedges. You can debate the fact that SWA treats its customers and employee's better than any other airline and that is the big advantage, however, NWA has a higher load factor.

Those are pretty bold statements.

Care to back those up with sources?

Thanks.

 

[YourPilotFriend]

Those are pretty bold statements.

Care to back those up with sources?

Thanks.

SWA is running at about 81% capacity, NWA is at about 90% (89.7%). The current CASM and RPM do not reflect post bankruptcy numbers. However, with bankrupcty expenses the current CASM for NWA is at 11.16¢. RPM is at 13.05¢. SWA current CASM is at 8.70¢ with RPM running at 12.68¢. UAL is currently at a CASM of 12.1¢ with an RPM of 10.27¢. The fuel hedges at SWA represent a savings of about 2.5¢ per SM, they are paying a little less than half price for fuel. Labor costs at NWA represents 2.59¢ of the ASM and fuel is 3.19¢ of the CASM. When the labor groups TA's take affect there will be additional savings of labor and we will find out the actual value of the TA's, which, I antcipate to be much higher than what is reported(we got screwed). SWA labor accounts for 3.24¢ per ASM and fuel for 2.27¢ of the CASM. Post bankruptcy numbers should be significantly lower than what they are now, especially if NWA dumps the pension fund. The 787 will even produce additional savings. SWA future CASM should be about 9-10¢ over the next few years.

 

[lowecur]

Those are pretty bold statements.

Care to back those up with sources?

Thanks.

Here's a source on DL. Notice the non-fuel CASM. Not quite as good as SWA, but close. Also, CASM is mainline only and this skews the total........but still quite impressive.

http://www.primezone.com/newsroom/news.html?d=101495

imp:

 

[YourPilotFriend]

Here's a source on DL. Notice the non-fuel CASM. Not quite as good as SWA, but close. Also, CASM is mainline only and this skews the total........but still quite impressive.

http://www.primezone.com/newsroom/news.html?d=101495

imp:

Yes that is impressive, my numbers include XJ, and 9E which willl also represent additional savings. My numbers exclude cargo, which has a CASM of about 10¢ and an RTM of 40.50¢.

 

[SWA/FO]

I can compare SWA with any bankrupt legacy because they were restructured as LCC's. Operation costs at NWA are very comparable to that at SWA. The only advantage SWA has on the current markets is its fuel hedges. You can debate the fact that SWA treats its customers and employee's better than any other airline and that is the big advantage, however, NWA has a higher load factor.

It doesn't matter what your load factors are its is you make money. No way does NWA have costs close to SWA. No way, Baby!!

 

[YourPilotFriend]

It doesn't matter what your load factors are its is you make money. No way does NWA have costs close to SWA. No way, Baby!!

You can raise fares as your fuel hedges relax but at the current market prices, you guys are making other airlines profitable. SWA was strong because it could make airlines go bankrupt at its rates. Your business model is useless if you can't undercut the competition. Your multi-airport tour method of travel is only tolerable at the cheapest prices. Soon you guys will be the most expensive airline to travel on.

 

[mdf]

YourPilotFriend,

You are not too pilot friendly! Your research of airline metrics is admirable. I don't have the energy to keep up, but I will say this. You appear to be impressed with the fact that you have dropped your pants on every level. You seem happy that costs are now in line with SWA's. You have now cut off your nose to spite your face. Here is a number for you. SWA's CEO salary is roughly 100% more than it's going captain rate. What's that number over at your airline? How about you go work on fixing that number at your airline, instead of coming on here and trying to hand out kneepads to your fellow pilots.

 

[ivauir]

Your multi-airport tour method of travel is only tolerable at the cheapest prices. Soon you guys will be the most expensive airline to travel on.

Actually our business model is "point to point". The second statement is just moronic.

SWA is running at about 81% capacity, NWA is at about 90% (89.7%). The current CASM and RPM do not reflect post bankruptcy numbers. However, with bankrupcty expenses the current CASM for NWA is at 11.16¢. RPM is at 13.05¢. SWA current CASM is at 8.70¢ with RPM running at 12.68¢. UAL is currently at a CASM of 12.1¢ with an RPM of 10.27¢. The fuel hedges at SWA represent a savings of about 2.5¢ per SM, they are paying a little less than half price for fuel. Labor costs at NWA represents 2.59¢ of the ASM and fuel is 3.19¢ of the CASM. When the labor groups TA's take affect there will be additional savings of labor and we will find out the actual value of the TA's, which, I antcipate to be much higher than what is reported(we got screwed). SWA labor accounts for 3.24¢ per ASM and fuel for 2.27¢ of the CASM. Post bankruptcy numbers should be significantly lower than what they are now, especially if NWA dumps the pension fund. The 787 will even produce additional savings. SWA future CASM should be about 9-10¢ over the next few years.

Plenty of assuptions here buddy, not to mention wishful thinking. Interesting attempt to compare numbers that your airline MIGHT get against the numbers SWA actaully has (minus the fuel hedges we purchased as part of our business model).

If you think NWA will have lower CASM than SWA in the next five years you need to take your self off of the flying schedule and get to rehab ASAP.

 

[YourPilotFriend]

YourPilotFriend,

You are not too pilot friendly! Your research of airline metrics is admirable. I don't have the energy to keep up, but I will say this. You appear to be impressed with the fact that you have dropped your pants on every level. You seem happy that costs are now in line with SWA's. You have now cut off your nose to spite your face. Here is a number for you. SWA's CEO salary is roughly 100% more than it's going captain rate. What's that number over at your airline? How about you go work on fixing that number at your airline, instead of coming on here and trying to hand out kneepads to your fellow pilots.

Are you kidding? Steenland made $571,000 last year and lost millions on stock. The head of SWA made $11.8 million last year and is slated to make more this year. Your pilots are paid $6.4 million a year? There is not a single executive or employee at SWA that makes less than any comparable NWA employee or exec.