Southwest PROFIT 1 QTR - BABY!!!!!!!!

[SWA/FO]

Southwest Airlines has added a news release to its Investor Relations website.
Title: Southwest Airlines Reports First Quarter Earnings; Revenues Exceed $2.0 Billion Date: 4/20/2006 6:50:00 AM
For a complete listing of our news releases, please click here

DALLAS, April 20 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV)today reported first quarter 2006 net income of $61 million, or $.07 perdiluted share, compared to $59 million for first quarter 2005.

 

[capt_zman]

Nice job. Steady eddie as usual.

 

[Mugs]

Southwest Airlines has added a news release to its Investor Relations website.
Title: Southwest Airlines Reports First Quarter Earnings; Revenues Exceed $2.0 Billion Date: 4/20/2006 6:50:00 AM
For a complete listing of our news releases, please click here

DALLAS, April 20 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV)today reported first quarter 2006 net income of $61 million, or $.07 perdiluted share, compared to $59 million for first quarter 2005.

What you should really be whooping about is the $131 million benefit from the fuel hedges for the quarter that made the net income figure above happen.

 

[CapnVegetto]

Wow!!!! SWA mad a profit BABY!!!! YEAH BABY!!!!! I'M FROM PLANET OVERZEALOUS BABY!!!!!!!!!

 

[lowecur]

Exercized options on 79 more 737s in the next five years? That's 16 more a/c per year than you were getting. Mega-Grow your costs low, it's a great theory until the dog pooh hits the fan. Man, I hope ol Gary & Herb know what they are doing. LF's and yields are up, so that's good. Be interesting to see if they buy more hedges with fuel costs on the move again.

imp:

 

[J3CubCapt]

Gary Kelly
"We are confident about our future growth opportunities as evidenced by our agreement with Boeing today to exercise 79 options for delivery of Boeing 737-700 aircraft in 2007 through 2012, bringing our current firm orders to 140. We also have 116 options, with delivery positions in 2008 through 2012, and 54 purchase rights for delivery through December 31, 2014."
http://biz.yahoo.com/prnews/060420/nyth063.html?.v=49

 

[Jim Smyth]

What you should really be whooping about is the $131 million benefit from the fuel hedges for the quarter that made the net income figure above happen.

That $131 million benefit that fuel hedges provided came from profits to start with since you pay for the hedges up front. Its all good and goes into the total equation which sets the ticket price to make an exceptable profit for the company to expand the operation and also for the shareholders to make a profit.

 

[Jim Smyth]

Exercized options on 79 more 737s in the next five years? That's 16 more a/c per year than you were getting. Mega-Grow your costs low, it's a great theory until the dog pooh hits the fan. Man, I hope ol Gary & Herb know what they are doing. LF's and yields are up, so that's good. Be interesting to see if they buy more hedges with fuel costs on the move again.

imp:

I havent seen it in print yet but heard this week that we did indeed lock in some more hedges in the future. They were more expensive (heard in the low $60 a barrel range) but they want to know what they will have to work with down the road.

 

[firstthird]

lowecur

Exercized options on 79 more 737s in the next five years? That's 16 more a/c per year than you were getting. Mega-Grow your costs low, it's a great theory until the dog pooh hits the fan. Man, I hope ol Gary & Herb know what they are doing. LF's and yields are up, so that's good. Be interesting to see if they buy more hedges with fuel costs on the move again.

Those 140 firm orders, 2007-12, are not 'mega-growth' by any stretch. SWA tries to grow at 8-10% during good and bad times. Apparently the smart guys have figured out it is a sustainable rate. Add in the 116 more of options, we're up to 256 for 6 years about 40 per year, which equals just about 8-9% for a current fleet of 445 aircraft. Sounds about right to me.

 

[canyonblue]

What you should really be whooping about is the $131 million benefit from the fuel hedges for the quarter that made the net income figure above happen.

Oh I'm whoop-in' baby! Better from the hedging, than from my paycheck. Here's to a management team that produces what they get paid to do.:beer: