What REALLY sucks is we don't have the cash to buy hedges with fuel under $40.
You're going to see an operating profit and a loss on paper of over ONE BILLION DOLLARS tomorrow.
Gary Kelly isn't living up to the hype.
If they dont upgrade their product or offerings (ie wifi, tv, movies, instant messenging, etc) will they lose business to other airlines with similar pricing? Absolutely!
How many more quarters can the airlines have like this? United and SWA both bleeding billions per quarter...something has to give. I know there is no newhires for a couple of years at SWA....but is there even worse news looming?
If you understood hedges you moron, you'd know what I was talking about with the estimation on the loss.
The fact is SWA has been staving off losses for some time with its fuel hedging business. That business is gone. Losses will ensue. Will they immediately go out of business? No. Their credit would need to take a further dive and more airplanes sold before that would ever happen. Are they now playing on closer to a level playing field? Yes. If they dont upgrade their product or offerings (ie wifi, tv, movies, instant messenging, etc) will they lose business to other airlines with similar pricing? Absolutely! With most of their eggs in the domestic basket (sans Volaris) does their dissadvantage increase as other carriers increase the reach of where frequent flyer miles will take you? Yup.
So, if you don't understand how to hedge fuel you are a "moron"? Congratulations to you that you do. Perhaps you can explain the exact process. I have a general understanding about the hedging process like most of us since it has been such a big part of our industry but I have to admit I'm no expert. Also, can you further explain the different criteria that Airlines use when reporting their earnings please?
The fact is SWA still made money! The fact is SWA just sent a letter home to every employee stating AGAIN taht there will be NO LAYOFF'S OR WAGE REDUCTIONS. The fact s can you say that about your airline-NO you can't.