SWA- 90% Un-hedged through 2013

[Colonel Savage]

...but is there even worse news looming?

Not if you go away.

 

[redflyer65]

One question...

How many other major airline OWN over 80 percent of their fleet?

Nwaredtail has it right, there aren't any low cost hedges available right now so Southwest will float. But when there is, they will have the cash and leverage to be very effective when it's difficult for others.

Tough times for everyone included SWA..yes,
Sky falling? I don't think so.

RF

 

[Richard Gozinya]

I know there is no newhires for a couple of years at SWA....

I'm sure everyone is surprised that you don't know what your talking about.

 

[contrail67]

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.

Gup

Actually, Gary Kelly said he was not looking forward to January numbers. He knew this was coming, and it is not going to stop.

 

[minrest]

When I read that article I felt like an accountant trying to read a flight manual. I have no idea what it said.

 

[Sedona16]

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.

 

[getonit]

This was probably written by the same jackasses on Wall Street who have gotten us into this financial mess. They can sit and analyze reams of complicated data that are dependent on thousands of variables that no one can predict. They don't understand anything about running a real business, making sure customers are satisfied, bills are paid on time, etc. The fundamentals of making and growing a successful business are completely foreign to them. They are all a bunch of lemmings following each other around until one of them decides to do something different and then we as end purchasers pay for their mistakes. Look at the recent history of Wally Street. They do it over and over again through arcane complicated financial practices that do nothing but make themselves wealthy. There was a recent article in Forbes asking what all of these money managers have done? The long term says you can't beat the market, look at the 10000 plus mutual funds out there, how many of them beat the average, technically only half of them. The ones that beat the market by 4% over average are probably in the 3 sigma range, which I think is only about 2.4%, if I remember my statistic correctly. I made all of those numbers up, but I have read it somewhere and if I get challenged I will find the actual numbers. You can sit and tell me about how they work in the capitalistic system providing liquidity, risk mitigation, etc but their overall greed ignored the fundamentals.

Soapbox ending.

 

[Cobra17]

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!

I agree...they need to become more like Jetblue or Song...that business model is printing money!!

AMR is trading at 8 bucks. Buy.

 

[Whataburger]

Three words...

...Whose hiring, we're fU(ked.

 

[Captzaahlie]

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?

Yes, the worst news is that we will be reading more of your posts.....
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