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Southwest Airlines Reports Loss

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weasel_lips

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Southwest Reports Net Loss Due to Fuel Hedges
Companies:Southwest Airlines Co


By Reuters | 16 Oct 2008 | 07:10 AM ET

Southwest Airlines reported a quarterly net loss on Thursday, reversing a year-ago profit, on charges related to its fuel hedging program.

The low cost airline's third-quarter net loss amounted to $120 million, or 16 cents per share, compared with a profit of $162 million, or 22 cents per share, a year earlier.
Excluding one-time items, Southwest earned $69 million, or 9 cents per share, beating the average Wall Street estimate of 7 cents per share, according to Reuters Estimates.
The airline industry has been severely battered this year by soaring fuel costs that peeked at a record high in July before falling rapidly.
Southwest, whose fuel hedges are the envy of the industry, was somewhat insulated from the spike in fuel prices but reported charges of $247 million related to adjustments on a portion of the future period of its hedge portfolio.
The airline's revenue rose about 12 percent to $2.9 billion. The company ended the quarter with $3.4 billion in cash and short term investments.


For The Latest Earnings News, Click Here


Copyright 2008 Reuters. Click for restrictions.

http://www.cnbc.com/id/27212517
 
Last edited:
120 dollars? Not too bad.

;)
 
Southwest Reports Net Loss Due to Fuel Hedges
Companies:Southwest Airlines Co


By Reuters | 16 Oct 2008 | 07:10 AM ET

Southwest Airlines reported a quarterly net loss on Thursday, reversing a year-ago profit, on charges related to its fuel hedging program.

The low cost airline's third-quarter net loss amounted to $120 million, or 16 cents per share, compared with a profit of $162 million, or 22 cents per share, a year earlier.
Excluding one-time items, Southwest earned $69 million, or 9 cents per share, beating the average Wall Street estimate of 7 cents per share, according to Reuters Estimates.
The airline industry has been severely battered this year by soaring fuel costs that peeked at a record high in July before falling rapidly.
Southwest, whose fuel hedges are the envy of the industry, was somewhat insulated from the spike in fuel prices but reported charges of $247 million related to adjustments on a portion of the future period of its hedge portfolio.
The airline's revenue rose about 12 percent to $2.9 billion. The company ended the quarter with $3.4 billion in cash and short term investments.


For The Latest Earnings News, Click Here


Copyright 2008 Reuters. Click for restrictions.

http://www.cnbc.com/id/27212517

SWA posted a $69 Million Operating profit.

The whole reason there are reporting a loss is due to a change in account rules that Congress voted in, in which SWA has to take a charge on it's fuel hedges since they have become less valuable.
 
Remember that the "Jerry Springer" crowd will not be flying when air fare's cost more than Greyhound.
 
SWA posted a $69 Million Operating profit.

The whole reason there are reporting a loss is due to a change in account rules that Congress voted in, in which SWA has to take a charge on it's fuel hedges since they have become less valuable.

Plus it shows the pilots during negotiations that the lost money and can't afford to pay us any more $$$
 
SWA posted a $69 Million Operating profit.

The whole reason there are reporting a loss is due to a change in account rules that Congress voted in, in which SWA has to take a charge on it's fuel hedges since they have become less valuable.

Not a luv hater, but you're saying some losses are real and some aren't?

So Delta made a profit yesterday, but more importantly, American didn't. If you can't count special one time charges (expenses), I guess you can't count one time gains.
 
Not a luv hater, but you're saying some losses are real and some aren't?

So Delta made a profit yesterday, but more importantly, American didn't. If you can't count special one time charges (expenses), I guess you can't count one time gains.

we are still getting our profitsharing off the $69 million or whatever amount gain.
 

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