Southwest - Profit!!!

[B737Dvr]

Now, just in cause you think I still have it in for SWA and hope that you guys fail, and so that i can.....lol.....get out of that "jackass room".....lol....
please fill me in bluey on SWA's plan on how to cope with their coming fuel crisis...(if you dont call going from 30ish a barrel to 70ish a barrel a crisis, then we need to work on that first).
the reason the industry's price increases have been successful is because they were initiated by the LCC sector and the majors will not waste a second to back them up. Beyond raising your prices....what else can WN do? Dont you guys already kick ass with turnaround times? How is the exploratory seating assigning going? Where else can they look at to increase productivity, and cut down on waste and cost?.....these are questions i'd want answered now....and not after WN reports their losses and time is critical.........if you guys figure this out....and keep your pay and benny's from being touched then youll be the first ever, and I am all ears!!!!!

btw, i hope you are not in the camp that believes that oil prices will return to 50 a barrel much less 30....because that is what caused usairways immediate return to ch11 their idiotic mangmnt and i think that is what UAL has based their biz plan on 50 a barrel....yikes!!!!!!
any thoughts?

 

[B737Dvr]

cubby.......

Quote from B737Dvr
I am just saying what is already public knowledge that SWA will have been in the red without their fuel hedges.

I'm SOOOOOO tired of hearing this one. ITS CALLED A BUISINESS PLAN, WHY DON'T YOU GET ONE!

Hey man, Im just quoting your own press release....again it is not an attack....its just a restatement and a reference to intelligent and proactive management on your part! their ability to forsee this and play the commodities market worked out real well for you guys and those guys deserve every penny they make for what they did!

Quote from B737Dvr
Perhaps this was unsolicited advice, but was also an indirect reminder of what the future balance sheets will cause Wn's mngmnt to look at....labor real high pay!

Well the difference is that we WORK for what we get paid!

Yes, I am well aware that you guys bust your ass to make it happen, and you are probably taking issue with the B777 guys that in your opinion dont work as hard as you.........but to do that is akin to taking pot shots at you guys for being with a great company and for being profitable!

Damn, you guys must be getting the ******************** kicked out of you everywhere you go, cause you are awfully defensive! sheot! i made a lil comment and then i get the idiot's treatment...sheesh....

 

[Whataburger]

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

737 USair? Sounds like it.
If you cared enough about our situation to devote "real" time toward our company, you would have listened to the 2hr conference this morning. You would have seen how competent our company is, that they do have a plan, and are willing to do what it takes to be sucessful. Everyone has been waiting for us to fall on our face since 1971. Still going strong. Is the future uncertain? Yes. Is the price of doing business going to go up? Yes. Do we have an outstanding mgmt team that will put in 150% of their efforts to make sure SWA and it's 30,000 employees are around for 35 more years? You bet! Do we pilots know the plan? I don't. Didn't get my business degree. I fully trust my mgmt to do their jobs just like they completely trust me to do my job. Grab some popcorn and watch the show. We will continue to teach the industry how things SHOULD be done.

 

[Airtran717]

Congrats SWA! Nice Job! I hope we post a profit too!

 

[B737Dvr]

nope!

737 USair? Sounds like it.
If you cared enough about our situation to devote "real" time toward our company, you would have listened to the 2hr conference this morning. You would have seen how competent our company is, that they do have a plan, and are willing to do what it takes to be sucessful. Everyone has been waiting for us to fall on our face since 1971. Still going strong. Is the future uncertain? Yes. Is the price of doing business going to go up? Yes. Do we have an outstanding mgmt team that will put in 150% of their efforts to make sure SWA and it's 30,000 employees are around for 35 more years? You bet! Do we pilots know the plan? I don't. Didn't get my business degree. I fully trust my mgmt to do their jobs just like they completely trust me to do my job. Grab some popcorn and watch the show. We will continue to teach the industry how things SHOULD be done.

Wrong burger man....i dont work for usairways, but nice try to reference me back to the sour grapes bandwagon! Dont confuse you and I and anyone else on here for any (REAL TIME) its just a website....what i, you and anyone else on here put down is superfluous to everything else....
i am very active in the financial markets, so I have been keeping an eye at LUV for quite some time now, and yes I have actually read the transcripts from the conference call. Again, I say very impressive! I have never said anything about how you guys will fall on your face.....i hope it doesnt happen! I have jumpseated a bit on WN and you guys have been nothing but great...a testament to your company......all i simply say is that I am curious as to how WN will maintain these #'s with the upcoming fuel expenses. Gary even alluded to the fact that in order for this to happen they had to initiate "modest fare increases"......this could be the catalyst that may propel LUV into new territory as far as stock price is concerned,,,,because their stock has done nothing but go lateral if not sink a bit since 2000 after their last split. the good thing about fare increases is that it is also what the majors need and they need it bad! trusting your management to do their job is great as long as you keep your eyes open and with the same mindset that your CFO's office had when they looked ahead to hedge.....i think it is just prudent for us all to heed that example.......i hope SWA will be around for another 50 years or so.......but resting on your laurels (which is what you guys dont seem to be doing) has shown that even airlines like Pan Am, Eastern, TWA...(global names that ruled the skies for 70 years) can sucumb. I hope WN is able to show the industry how to deal with this landscape so that others (management) can see how its done!

 

[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.