Southwest CEO Lands In Hot Seat

[SWAdude]

Lowecur,

Since you seem to be an idiot, I was careful to word this so any third grader can understand.

Although I do have my doubts about you.


Yield is the financial metric used to examine ticket pricing and the term “Yield” probably originated from someone asking the question, “How much did you make on each seat you filled?” The answer might have been: “for each revenue passenger mile (RPM) we produced, we ‘yielded’ so many cents.” Yield is a small unit of measure that captures all the different ticket prices charged on all the different flight lengths. The definition of Yield is the amount, on average, one passenger paid to fly one seat mile. Another way to think about it is take all the money passengers paid for tickets and divide it by the number of revenue passenger miles (RPMs) you flew.

Or do I now need to define what an RPM is to you.

 

[Stifler's Mom]

I keep waiting for the day when I actually see lowecur impaled on that pitchfork. Sorry man.

 

[lowecur]

Lowecur,

Since you seem to be an idiot, I was careful to word this so any third grader can understand.

Although I do have my doubts about you.

Dude, now explain to me how all this "yield" that LUV seems to have is going to produce more than $5M in profit this month?

The facts are these this Q: LUV's RASM will decrease this Q over a year ago because seats are on sale because of weak bookings and increased capacity. RPM's by itself tells us absolutely nothing about how the airline is doing. A large increase in RPMs will sometimes mean only that an airline has increased capacity and thus has sold more seats. Yield is determined by how much an airline makes per RPM, just as you stated.

RASM is a much better determinant of how any airline is doing than yield itself. RASM represents how much a carrier made in relation to all the seats that were available rather than only looking at the ones that are filled.

So you see dude, like it or not, LUV is going to have a very marginal Q. Get it du, du, dude.

 

[lowecur]

what is he doing here anyway?

Hey, backHose...............is it true with your teeth, you can bite an apple through a tennis racket?

 

[SWAdude]

Lowercur,

Didn't you play this same game last quarter and like this quarter you looked like a complete idiot???.

And because of this I will add you to my ignore list...first one. Have a good life.

 

[FlyBoeingJets]

Lowecur,

I'm intrigued by your analysis. Please explain further how an airline with $2 Bil in cash and little debt is in trouble.
Are you saying legacy carriers are fighting back the LCC threat?

Couldn't SWA just be increasing market share across the USA in an uncertain economic environment? Maybe SW is early with aircraft orders but who would have figured the economic recovery would stumble?

I do think this is a new environment but not how you think it's new. It is currently a LCC vs. Legacy world. SW is leading the charge and is willing to accept razor thin profit, like ATA often does, to push their advantage. But soon it will be a LCC vs. Regional world, IMHO.

My buds still say SWA is going to double over the next few years. One would be foolish to expect that growth would happen without stumbles. But just as furlough and contraction feeds on itself, so does growth. Costs will be WAY lower with steady growth. That is how SWA will stay competitive.

I predict SWA's success will surprise many. If not, we may be surprised by the dominance of the regionals and the soon to happen changes that caused it.


OTOH, I wonder if the F/As will continue to act like idiots. In dark moments I ponder whether or not SWA is destined to share the fate of EVERY dominant U.S. carrier.

 

[lowecur]

Lowecur,

I'm intrigued by your analysis. Please explain further how an airline with $2 Bil in cash and little debt is in trouble.
Are you saying legacy carriers are fighting back the LCC threat?

Hey Boeing. Just offering my prognostications for the Q, when one of the parrots decided to throw spit balls.

Of course SWA is not going under, but they're not doing as great as all the birdbrains seem to think.

I think your analysis of the future has merit. The regionals with their cheap payrolls and ability to morph quickly into a viable LCC, will be a power to contend with if a few legacy's go under. I see Grinstein thinks there may only be one or two legacy's left in 5 to 10 years due to consolidation and attrition.

 

[N1atEcon]

Blah blah blah

He is just looking to start a new flame. Since there isn't any news out of the EMB certification for him to sell us. ROFL