Southwest - Profit!!!

[canyonblue]

please fill me in bluey on SWA's plan on how to cope with their coming fuel crisis

Raise fares to cover the cost I would hope. Who knows, it's never been done. And I don't take your comments as bashing, it's an Internet Board and we all have free speech.

 

[B737Dvr]

now we have some truth!!!!!!!

Raise fares to cover the cost I would hope. Who knows, it's never been done. And I don't take your comments as bashing, it's an Internet Board and we all have free speech.

RAISE FARES TO COVER THE COST!!!!!!! ALLLELLLUIIIAAAHHHH!!!!!!!
thanks man! that is what needs to be done, its just that you guys have been keeping the fares at rock bottom bleeding the majors to death (love captialism ...a la walmart) hoping to weaken the competition while strenghening your position! My hats of to you guys for being where you are, that is freaking awesome and you are all envied right now!

What im curious about is how things will shape up. I wonder if you guys can raise prices enough to stay profitable while doing the other things that you guys do so well. 2. i wonder how competitive it will get and if the legacy's branding and multitude of perks will win their pax back when the price difference between a LCC and a major will make the decision easier and now not based on dollar amount! now in this upcoing landscape i wonder how the majors will get their ******************** straight or not.

at any rate, like you said blue....ITS NEVER BEEN DONE BEFORE......what sweet irony would it be for you guys to blaze THAT trail too! thing is it would help everyone else out too! So i for one am rooting for ya!

you guys have come a long way from hopping fences and stealing parts from other airplanes in dallas just to keep your operation airborne!....

 

[scoreboard]

Not quite right pal

I am just saying what is already public knowledge that SWA will have been in the red without their fuel hedges. !

Not quite accurate. 333 million including the unrealized gains from hedging. 273 million without the unrealized gains from hedging. In addition to these two numbers SWA made 225 million in realized gains from hedging.

The true bottom line is 333 plus 225 for a total of 558 million in profits. See quotes below:

"DALLAS, July 19 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV - News) today reported second quarter 2006 net income of $333 million...The Company's second quarter 2006 net income included unrealized gains/losses associated with Statement of Financial Accounting Standard (SFAS) 133, "Accounting for Derivative Instruments and Hedging Activities," as amended. Excluding these unrealized SFAS 133 gains/losses, net income for second quarter 2006 increased 87.0 percent to $273 million, or $.33 per diluted share...We had a $225 million second quarter 2006 cash benefit from our fuel hedging position...
http://biz.yahoo.com/prnews/060719/daw009.html?.v=66


Monkey head, learn to read a financial statement before you spout your lies, you said you were active in the market? Doubtful.

 

[aa73]

Congrats SWA and its awesome employees!

Your local crosstown admirer,
73

 

[TexaSWA]

One More Time For B737drvr

Not quite accurate. 333 million including the unrealized gains from hedging. 273 million without the unrealized gains from hedging. In addition to these two numbers SWA made 225 million in realized gains from hedging.

The true bottom line is 333 plus 225 for a total of 558 million in profits. See quotes below:

"DALLAS, July 19 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV - News) today reported second quarter 2006 net income of $333 million...The Company's second quarter 2006 net income included unrealized gains/losses associated with Statement of Financial Accounting Standard (SFAS) 133, "Accounting for Derivative Instruments and Hedging Activities," as amended. Excluding these unrealized SFAS 133 gains/losses, net income for second quarter 2006 increased 87.0 percent to $273 million, or $.33 per diluted share...We had a $225 million second quarter 2006 cash benefit from our fuel hedging position...
http://biz.yahoo.com/prnews/060719/daw009.html?.v=66


Monkey head, learn to read a financial statement before you spout your lies, you said you were active in the market? Doubtful.

Just wanted to make sure you read it. You were quick to respond until Scoreboards post.

 

[lowecur]

The true bottom line is 333 plus 225 for a total of 558 million in profits. See quotes below:



Monkey head, learn to read a financial statement before you spout your lies, you said you were active in the market? Doubtful.

Uh, I don't think so. The $225M is just a cash benefit, not in addition to the $333M. It's the difference between the Fuel/Oil Expense of $716M and Fuel/Oil Expense -economic basis of $491M.

imp:

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0000092380%2D06%2D000007%2Etxt&FilePath=%5C2006%5C07%5C19%5C&CoName=SOUTHWEST+AIRLINES+CO&FormType=8%2DK&RcvdDate=7%2F19%2F2006&pdf=

 

[TexaSWA]

Pocket change compared to what UPS will post next week!

Great news for UPS, but dont let the fact that you UPS operates a fleet of aircraft confuse you into thinking that its at all related to the same industry as Southwest or any of the other airline.

If you want to gloat and call someone elses profits "pocket change" try another cargo hauler. It just makes more sense.

But congrats to UPS anyway.

 

[TexaSWA]

Poor public speakers commonly say things like "uhh" and "you know" because they cant transform their thoughts into words efficiently.

When typing, its pretty easy to leave these fillers out.

This is for anyone here who is guilty of this.

There are many.

 

[YourPilotFriend]

SWA will continue to be a very profitable company. The problem is to remain profitable as fuel hedges run out, they will need to adjust the business model to cope with these changes. The important thing to realize is SWA will probably never go into the red because they have enough time to make the necessary changes to the model. B737Dvr is not wrong in his assumptions that the employement group at SWA will face some hardships. I can't exactly tell you how the company will go about getting those changes. I think you will see that there are several areas SWA is going to improve on and they all have negative impacts for some of the pilot group. I may have spoken to soon about the pilots recieving a paycut. Right now, I think the pilots will see a pay raise at the expense of some of your junior pilots. They may be sent off in a jets for job type situation.

The business model will eventually change to include fee for departure situations for international travel and the short haul routes. Replacing a large chunk of the domestic fleet of 737s with regional jets. The $64,000 question is about how SWA will be able to keep the positive atmosphere? I think there is a solution there that will make everyone happy and allow the company to make the necessary model changes to keep profitability.

But as I have stated before, to keep SWA in its current form would require the pilots to take a 20-30% paycut. Even your CEO has stated they need to change in order to compete with the legacy's and other LCCs.

 

[TexaSWA]

either way, its a profit even without hedging.