Southwest beats forecast with $112 million profit

[texman]

Say again? Are you talking about the replacement aircraft or the age 70 quip? Kelly stated no new growth aircraft through 2012, so I guess you mean age 70. You never know, your group pushed hardest for 65.

The 70 thing will never happen.

 

[StopNTSing]

$3.4B in Cash!

This company has been keeping a butt-load of powder extremely dry for a very long time. The rumor mill around here has just about given up trying to guess what that war chest will be used for, but rest assured, it WILL be used at some point...

 

[maxblast72]

This company has been keeping a butt-load of powder extremely dry for a very long time. The rumor mill around here has just about given up trying to guess what that war chest will be used for, but rest assured, it WILL be used at some point...

Maybe Kelly going to show Bedford who is going to be the odd man out in Denver.

 

[jonjuan]

This company has been keeping a butt-load of powder extremely dry for a very long time. The rumor mill around here has just about given up trying to guess what that war chest will be used for, but rest assured, it WILL be used at some point...

LOL-Microsoft has had over $20 Billion in cash for years-guess what-everyone has been speculating that they would do something BIG with that moolah. That "some point" may very well be 20 years from now. WN is in no better cash/debt position to do anything exciting than most legacies, to include USAir, sorry to say.

 

[FlyinGuy]

GK is not going to do anything with that cash. He is a short sighted bean counter who is afraid to take a risk.

 

[Hose A. Jiminez]

GK is not going to do anything with that cash. He is a short sighted bean counter who is afraid to take a risk.

I hope you're wrong... I think you're not.

 

[jonjuan]

GK is not going to do anything with that cash. He is a short sighted bean counter who is afraid to take a risk.

Bingo-as a bean counter, continued profit is perfectly OK with him. Growing means taking on risk. What many WN pilots believe is that there is no down side (risk) to continuing to grow. Nothing wrong with continued profits while adding to cash and reducing debt. They are now in the maturity phase of their lifecycle. The downside is that everyone will be stuck where they are for a very long time, to include the shareholders.

 

[gutshotdraw]

More than anything, Fortune 500 type CEO's hate uncertainty. When there is uncertainty in a few areas, they will risk capital. When there's a LOT of uncertainty in a LOT of areas, they hoard cash and avoid risk. So, let's review:

1. Major possibility of double dip recession? Oh yeah.
2. Middle class (ie: customer base) shrinking? Um, yep.
3. Continued high unemployment and poor job growth? For the foreseeable future.
4. Cost impacts of Obamacare? Sky is the limit.
5. Increased environmental regulation and associated costs? Green Police are on the scene.
6. Tax bills in the future? I can't count that high.

A report earlier this week said American corporations are sitting on nearly a trillion dollars and won't hire or grow. GK ain't stupid. We'll be lucky to hold onto the economic status quo for the next three years. Growth? You're dreaming.

 

[desolo]

I agree with the previous post, right on the money.

 

[huronip]

well in 2 years the Wright Ammendment is gone...so Dallas will open up big time. The new terminal will be done....it will be game on from there

Unfortunately SWA doesn't net any new gates in the new terminal and will never be allowed to fly international from there if SWA ever decides to go that route. 20 total gates and SWA gets 16 which is the total now. A maximum of 40-50 flights more per day at best from the current numbers.