Southwest Airlines Reports Loss

[contrail67]

Not correct. I also did point out that there seem to be a lot of "one time charges", especially during our BK when we were trying to get our wages negotiated. I thought we were the "king of the one time charges." And, I did point out that we did have operating profits some of the time. The difference is Southwest has NEVER done this before, which signals something. I guess times are TOUGH for everyone, even SWA now.


Bye Bye--General Lee

And now everyone is paying the same amount for fuel.....will be interesting.

 

[lowecur]

Lowercur,
I remember an earnings conference about two years ago when oil fell to 50 a barrel, and all of the analysts(like you) were hounding on Gary about fuel costs and losing money on the hedges. His and Laura Wright's response was great, they laughed at them literally. I remember listening going these analysts dont know their ass from a hole in the ground, and thank the lord above these guys(SWA) know what in the hell they are doing. I didnt listen to todays yet, but I would bet it is reminiscient of a few years ago.

He did say he was more concerned about the lack of future revenue from a downturn than the hedges, so I'm sure he had a good laugh at the finger pointing. One Q will not be a determining factor as to how he manages the hedges. Let's see how he does in the next 12 months, if oil prices put(no pun) the majority of his positions under water. If oil averages between 80-100, he's fine.

imp:​

 

[jetflier]

IMHO its too convenient a time for SWA to post a loss, considering that the pilots are entering in contract negotiations.

Management and lawyers are the same at every airline. At SWA they are finally showing their true colors, ...baby poop green and orange !

(SORRY COULDN'T RESIST IT!)

 

[Quimby]

People still need to travel around the world, and it takes too long on boats. The mega rich who used to fly on corporate jets will have to be reduced to first class travel on airliners. So will plenty of middle managers trying to rescue their businesses around the globe. So, there will be capacity cuts (we will cut more RJs), and you will have to cut 737s(?---you have no RJs--at least you aren't getting those 3 extra 737s this year).

And, LBB probably is awesome for you guys. The oil industry, which is huge out there in West Texas, is probably having trouble with this huge oil price fall, and profits aren't there like the used to be a few months ago. They are hating this economic downturn probably more than anyone else. At least they can hop one of your 737-300s and fly to LAS, to really gamble.


Bye Bye--General Lee

Wrong. You may see some "rich" folks in your first class cabin, but not the "mega rich".

That's FANTASTIC!

 

[momalley81]

Uh Huh. Yeah, riiiiiiight. The SWA guys have been dogging us for years, laughing at our "one time charges" and special accounting tools. Well, now they get to use them. I am sure they did get an "operating profit." I remember Delta doing that too after they also reported a technical loss.

Hey, how is starcheck doing? How many legs do you do a night in the Lear? Is that fun? Do you hit LBB?


Bye Bye--General Lee

I don't fly for Airnet.

 

[Quimby]

I don't fly for Airnet.

If GL says you do, then you do. He knows everything about everything. :laugh:

 

[maxblast72]

Southwest's average fare was up to $125 (about 18%) for the quarter but their load factor dropped over 5% while most other airlines load factors were down less than 2%. RASM was up about 10% overall.

Southwest is probably reaching that price point were they are going to reduce demand. Should be interesting going forward. With 75% of 2009 fuel hedged at $73/barrel, should be a pretty even playing field across the industry if fuel remain between $60-$80/barrel.

 

[Cobra17]

Welcome to what the rest of us have had to deal with: Accounting rules. This is the first time you have ever had to have "excuses." Yes, you probably made a profit, but every other quarter up till now you haven't had to have any explanations. Welcome to the new reality. Welcome to Lubbock. It is freaking FANTASTIC.


Bye Bye--General Lee

General....you should seriously consider counseling..or at least get yourself laid next time you're in SA..even if you have to pay for it. To say you have issues is a bit of an understatement.

 

[General Lee]

General....you should seriously consider counseling..or at least get yourself laid next time you're in SA..even if you have to pay for it. To say you have issues is a bit of an understatement.

That sounds FANTASTIC. I can't wait. Wait a second, Nah, I don't think I will, because my Texas Tech wife would hate me for it.

Bye Bye--General Lee

 

[General Lee]

I don't fly for Airnet.

You don't? Is that Fantastic or what? Congrats anyway.

Bye Bye--General Lee

 

[Cobra17]

That sounds FANTASTIC. I can't wait. Wait a second, Nah, I don't think I will, because my Texas Tech wife would hate me for it.

Bye Bye--General Lee

That explains a lot....so you do have an affinity for Lubbock! How on earth do you commute there to see the in-laws?

 

[General Lee]

I don't fly for Airnet.

Su-wheat, you fly for Bankair. That must be FANTASTIC. Ameriflight? Ah, whichever it is, I am sure you are always saying "That was a fantastic flight from Detroit City, next stop---Burke Lakefront."

Bye Bye--General Lee

 

[GuppyWN]

Don't be a tool General. You're no better than anybody else. Just fortunate the stars lined up when they did and you got hired at a decent company.

Don't be a dick about it.
Gup

 

[lowecur]

I guess WN is selling it's positions for 2009 according to a spokesman and analcyst at UBS:

For now, Southwest said it will back off its hedging strategy, though that could change if oil prices rebound, spokeswoman Brandy King told me.

"In the current environment of falling prices, it's probably better to be 'less' versus 'more' hedged, thus we are lightening our hedge positions," she said.
For the first time in many years, Southwest will essentially have no hedging benefit for fuel next year if oil prices stay at their current level, UBS analyst Kevin Crissey said in a report.
That would eliminate a key financial advantage that Southwest has enjoyed over its rivals.
It also would reduce the Bizarro effect on the carrier's earnings.

You are going to see a probable spike to the $80 or $90 level in the next few months if a cold winter is forecast, and OPEC sticks to a cut of 1M bbl at their upcoming meeting

imp:​

 

[The Prussian]

You are going to see a probable spike to the $80 or $90 level in the next few months if a cold winter is forecast, and OPEC sticks to a cut of 1M bbl at their upcoming meeting

imp:​

I'm kinda thinking that a cold economy will trump a cold winter...just a guess...and oil prices stay weak.

 

[momalley81]

Su-wheat, you fly for Bankair. That must be FANTASTIC. Ameriflight? Ah, whichever it is, I am sure you are always saying "That was a fantastic flight from Detroit City, next stop---Burke Lakefront."

Bye Bye--General Lee

Nope, nope and nope.

General I turned down a job offer with Delta in 2000.

I still have the letter from Plato Ryhne welcoming me to the Delta family.

 

[StopNTSing]

Don't be a tool General. You're no better than anybody else. Just fortunate the stars lined up when they did and you got hired at a decent company.

Don't be a dick about it.
Gup

Gup, my guess is he'll continue to be this way until Delta pilots start making more $$$$ than SWA pilots....since that roughly correlates to when he began to unhinge.

 

[B727Driver]

Gup, what did you expect from someone approaching 12,000 posts? The kicker is that he is married. Too much time on the laptop means she is not on his lap or those exotic layovers aren't so exotic (maybe LBB is more fun). Take your pick.

Cheers to all the SWA folks, always real nice.

 

[Cobra17]

I guess WN is selling it's positions for 2009 according to a spokesman and analcyst at UBS:

imp:​

Might want to see a doc about that analcyst. Sounds nasty.

 

[General Lee]

Don't be a tool General. You're no better than anybody else. Just fortunate the stars lined up when they did and you got hired at a decent company.

Don't be a dick about it.
Gup

Do they not fly between those routes? Did I really say he didn't enjoy them? Some people love that stuff. Good for him.

Bye Bye--General Lee