Southwest posts loss on weak demand

RedDogC130

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Southwest net loss $91 million
Southwest loss $20 million excluding items

NEW YORK, April 16 (Reuters) - Low cost carrier Southwest Airlines (LUV.N) on Thursday reported a quarterly net loss on weaker demand amid economic recession that has resulted in a sharp drawdown of consumer spending and leisure travel.
The low-cost airline's loss amounted to $91 million, or 12 cents per share, compared with a profit of $34 million, or 5 cents per share, a year ago.
Excluding items related to non-cash, mark-to-market and other items associated with a portion of Southwest's fuel hedge portfolio, the carrier posted a loss of $20 million, or 3 cents per share.
Revenue slipped 6.8 percent to about $2.4 billion, from a little over $2.5 billion in the first quarter of 2008.

sure good way to get the TA passed
 

BID

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Is that the first loss for SWA, not including special items? Just curious.
 

The Prussian

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Is that the first loss for SWA, not including special items? Just curious.
Yes...had we turned an "operating" profit, this would have been our 72nd consecutive quarterly operating profit. W/R to net (including special items such as fuel hedging, etc), we started turning negative in Q3 and Q4 of 2008. We're still profitable on an annual basis for 36 years, but 2009 is off to a bad start...
 
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Whine Lover

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Canary in a Coal Mine

" As long as the canary in a coal mine kept singing, the miners knew their air supply was safe. When the canary stopped singing it was time to evacuate."

SWA, SING... Damn you! Sing!

If the 800-pound Canary ain't singin'....Nobody's gonna' be singin'.

That's a fact, Jack.


YKMKR
 

shootr

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Not to make light of this bad news, but...

In the worst recession in which SWA has even existed, coupled with Easter falling in April, it should be no surprise to anyone that we would post a quarterly operating loss. The mark to mark write-down should also not be a surprise. The economy will come back and whatever workrules we have when that happens will be difficult to change back to what we have now.

It's still OK to vote no!
shootr
 

Linedriver

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Some good news for the FI swa haters.

Don't understand that sentiment at all. Why you would wish bad things for your fellow pilots is beyond me.

SWA is a good company just like other airlines out there trying to make it through these times.
 

General Lee

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It is amazing when we see a loss at SWA, but as someone said on here previously, that usually means everyone will post losses. A lot of SWA's loss was due to fuel hedges, and I am pretty sure DL will have a fairly large loss due to the same thing. Hedging can be a gamble---and it looks like SWA and DL, along with others, lost on Q4 last year and Q1 on this year.

Bye Bye--General Lee
 

Tanker Clown

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No way Delta posts a loss. Between Song and all the ca$h coming in off the international routes, I estimate a quarterly profit for the boys from ATL to be in the billions!
 

instructordude

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The hedges are part of the loss at SWA but their labor costs are also out of control.
 

jtf

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Another article mentioned that the company was offering buyouts for all employee groups, but didn't give details. Anyone know what they are offering the pilots to bail early?
 

waka

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Don't understand that sentiment at all. Why you would wish bad things for your fellow pilots is beyond me.

SWA is a good company just like other airlines out there trying to make it through these times.
uhm, oooookay. I think vixin's comment actually reflects your sentiment and he/she wasn't wishing bad things for anyone. It was just commentary on a certain element that frequents this board.
 

vixin

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I fly for SWA. I dont wish bad on my own company. It was sarcasm for the FI guys that love to hate us. Now they have something to be happy about. Is that spelled out well enough?
 

scoreboardII

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The hedges are part of the loss at SWA but their labor costs are also out of control.
Nail on the head instructordude!

I mean really, were do these guys get off thinking they should get below COLA wage increase?

Thats just out of control right there!!!

Jeesh!
 

OurMoney1

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This is an engineered loss.

With open agreements and managements desire to lure the senior mommas into retirement Gary and team planned this one well.

Nothing happens in this industry by chance. They knew they had to report a fuel hedge loss at some point this year, what a better time than this quarter.

Its the man behind the curtain, dont kid yourself.
 

shroomwell

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I think the operating loss was the big surprise. The loss on hedges was known.
 

relief tube

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The hedges are part of the loss at SWA but their labor costs are also out of control.
whoa. Why don't you just say "I support lowering the bar".

You don't look old enough to remember when SWA had some of the lowest labor costs. Course that was before Jetblue, Airtran, $150 airfares, and overall capitalism run amok to the point where this country doesn't care that everything is made in China and sold to you by a minimum wage employee as long as it only costs $3.99.............basically before life in this country hit the ********************e-er.
 
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