Southwest Reports Decline in 4Q Earnings

[TAZ MAN]

Obviously, people have a short memory.

US Airways' recent fare sale has proven popular with travelers, the company said Tuesday.The sale, scheduled to end last night, produced the second-most-lucrative day ever for the airline's Web site, taking in $4.7 million on Monday, the company said in a message to employees. In addition, the airline said it sold nearly $3 million worth of tickets over the phone Monday, its best day in more than three months.

"The overwhelming response to the current fare sale and to US Airways as a company speaks volumes about the relationships we build with our valued customers," said Bruce Ashby, the airline's executive vice president of marketing and planning. -- TONY MECIA

I have little doubt that is absolutely true.

 

[SWAdude]

Obviously, people have a short memory.

US Airways' recent fare sale has proven popular with travelers, the company said Tuesday.The sale, scheduled to end last night, produced the second-most-lucrative day ever for the airline's Web site, taking in $4.7 million on Monday, the company said in a message to employees. In addition, the airline said it sold nearly $3 million worth of tickets over the phone Monday, its best day in more than three months.

"The overwhelming response to the current fare sale and to US Airways as a company speaks volumes about the relationships we build with our valued customers," said Bruce Ashby, the airline's executive vice president of marketing and planning. -- TONY MECIA

In Febuary of 1991, CEO Ed Beuvais told our class that after the half price sale AWA had never been in a better financial position.

Four months later they filed chapter 11.

 

[T45Flyer]

The hidden gem in this quarterly report that costs are coming back down again by Gary Kelly's belt tightening.

"Southwest did manage to cut overall unit costs by 1.3% as unit costs excluding fuel declined by 4.5%."

The company is looking at everything we do to make us more effecient and productive. Gary Kelly is very concerned with our turn times of 30 mins and wants to get us back in the 20-25 min range. When fuel prices recede Southwest will continue to have a low CASM and a very healthy company.

 

[lowecur]

In Febuary of 1991, CEO Ed Beuvais told our class that after the half price sale AWA had never been in a better financial position.

Four months later they filed chapter 11.

UAIR has petitioned the ATSB to use some of their cash for fuel hedging. Not a good opportunity to buy new hedges, but resales will be available from those that don't buy that fuel will remain high. This is something I'm sure SWA is looking at also.

 

[kelbill]

Obviously, people have a short memory.

US Airways' recent fare sale has proven popular with travelers, the company said Tuesday.The sale, scheduled to end last night, produced the second-most-lucrative day ever for the airline's Web site, taking in $4.7 million on Monday, the company said in a message to employees. In addition, the airline said it sold nearly $3 million worth of tickets over the phone Monday, its best day in more than three months.

"The overwhelming response to the current fare sale and to US Airways as a company speaks volumes about the relationships we build with our valued customers," said Bruce Ashby, the airline's executive vice president of marketing and planning. -- TONY MECIA

I stick with my statement. One day of great sales does not a profit make. Show me the data for sales volume and revenue in another month or so, then I'll fess up to being wrong. And that data has to be 2003 vs 2004. As for the most sales in almost 3 months over the phone, that is just statistics being played with. Heck, tomorrow I will be the oldest I've been in over 40 years. And I assume the USAIR has a frequent flyer program, so some customers will stick with her to the end. Fare sales after abusing customers is not a sign of doing things better, it is a sign of last resorts.

 

[TAZ MAN]

UAIR has petitioned the ATSB to use some of their cash for fuel hedging. Not a good opportunity to buy new hedges, but resales will be available from those that don't buy that fuel will remain high. This is something I'm sure SWA is looking at also.

I don't understand your counter-point to SWAdude's.

 

[lowecur]

I don't understand your counter-point to SWAdude's.

There is none. I must be crazy.