Southwest Airlines Reports Loss

[General Lee]

SWA has had accounting rules come along with every financial statement.

It is required by law.

Oh, you mean Sal the accountant doesn't just leave it blank except "we made $$$$$$$$$$"? I know that genius. I was talking about the special items, etc.....accounting "tools" I guess. Wow, you got me turbo nerd.


Bye Bye--General Lee

 

[momalley81]

Oh, you mean Sal the accountant doesn't just leave it blank except "we made $$$$$$$$$$"? I know that genius. I was talking about the special items, etc.....accounting "tools" I guess. Wow, you got me turbo nerd.


Bye Bye--General Lee

Again, SWA has used special items and charges in the past to their advantage. This is nothing new.

Almost 12,000 posts and you are calling me "Turbo Nerd"?

Ok, sure thing chief.

 

[vikesfanIV]

I listened to the Delta investor conference call yesterday and just listened to SWA's a few minutes ago. It was a much more productive 2 hours than reading posts on here from people who have no clue what they are talking about.

Richard Anderson & Gary Kelly both spent a good amount of time discussing fuel hedges and how each of their companies deals with the flucuations in fuel prices. Bottom line, ALL airlines will benefit from the falling oil prices. Most will be taking advantage of this steep decline to hedge into the future. I still believe this is one place SWA has a major advantage because we are the only airline with an "investement grade" credit rating that can actually hedge 5 years in advance. We have begun to hedge modestly for 2013 while at the same time trying to lighten some of our hedges in the near term to take advantage of the falling prices. Delta is doing much the same but it sounded like they prefer to only hedge 1 year in advance. They are also hedged higher than the current prices of oil so they will be seeing near term losses on those hedges, but this will be offset by larger gains (savings) on the unhedged portion of their fuel.

Here's a link to both conference calls.
http://www.southwest.com/?src=INVRINV3Q08000000081016

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=71481&eventID=1993781

 

[The Victors]

Remember that the "Jerry Springer" crowd will not be flying when air fare's cost more than Greyhound.

Oh..where to start. I wouldn't be to proud of the people you fly around in that 1950's polished turd of yours. I've been on your airline and they are the same or worse. Such a high class of people in Detoilet. It's amazing to me how people hope and pray for bad results from any other airline, except theirs. If you are a 9 captain, do you realize that you go to work for less money than a swa fo? Do you like making crap money because you're flying crap around. Maybe, just maybe, you might think about the fact that if swa continues to be successful, you will have some leverage in contract talks TO GET A BETTER CONTRACT THAN THOSE SWA GUYS!! It's not that difficult a concept.

 

[Bob_Sacamano]

It looks like we beat Wall Street expectations and earned 9 cents per share versus estimates of 7 cents per share...which has sent our stock up 6% today.

However, hopefully the paper loss due to the GAAP rules regarding the fuel hedges will frighten some of the folks down in Dallas into actually mandating cost-cutting measures instead of just plowing along as usual. I can't tell you how many times I've heard we do something "just because that's the way we've always done it". Hopefully this will be the kick in the pants we need.

Having said that, there's still no other airline I'd rather fly for.

 

[contrail67]

"Ding" you are now free to lose money like the rest of us.

Too funny.

 

[lowecur]

what was that you were saying.

"Although today's challenges are unprecedented, we are well-prepared and committed to achieving our long-term financial targets and preserving our financial strength. Our unrestricted cash and short-term investment balance was $2.2 billion as of yesterday, including $1.1 billion in fuel derivative collateral deposits. Although our liquidity is healthy, we have made the prudent decision in today's unstable financial markets to access $400 million in additional cash through our bank revolving credit facility leaving $200 million still available. We remain financially conservative and well-prepared with our strong balance sheet and modest debt levels."

I am by no means justifying our loss. Like GUP said if you give s%!t you have to be able to take it.

Gary's a smart guy, no doubt about it. What will be interesting is to see his reaction if oil blows through $60, then $50bbl. The volatility and speed that this can happen, and the probability of a traumatic reversal at some point 2 or 3 years down the line, will make for an interesting decision whether he will sell or hold contracts. Some of the recent contracts are underwater and they've addressed that through write off's, not sales. So, if the past is any indication to the future, he may just hold the contracts all the way down to a bottom.........He better hope the economy bounces back, cuz he'll be spinning too many plates if we stay in a protracted deep recession or depression. If he pulls this off without losing much skin, the man should be running the country.

imp: ​

 

[LearLove]

hey chef - we get it your a JB pilot. the blue text is gay. normal black like the rest of us children will be fine from now on.

 

[whymeworry?]

All I've got to say is: TOLD YOU, TOLD YOU, TOLD YOU.

SW wasn't able to make money in this environment without their hedges. Their own CEO has said this many times over the past year so this should come as no surprise to anyone but the most cultic SW employees.

 

[Bavarian Chef]

hey chef - we get it your a JB pilot. the blue text is gay. normal black like the rest of us children will be fine from now on.

Whatever you say. Getting right on that.