SWA beats estimates!!

[T45Flyer]

Lowecur,
What planet do you live on?

 

[canyonblue]

Lowecur,
What planet do you live on?

urANUS

 

[Snoopy58]

Airline A: "Well, we lost a ton of money last quarter, but if we'd had hedges like Southwest, we could have made a tiny profit."

Airline B: "We made a healthy profit last quarter, although if we'd had zero hedges like most of our competitors, we'd have lost money (though not as much as they did)."

Whom would you rather invest in???

Fuel hedging and being protected from much of the current prices isn't blind dumb luck like buying a winning lottery ticket & then saying "good thing we won the lottery last month, otherwise we'd be going broke right now;" lottery winnings aren't generally repeatable; the protection of fuel hedging is both repeatable and, equally important, predictable into the future, so that plans can be made based on stable, knowable prices for fuel. Granted, the profit from the hedges is probably greater this year than next, but it's not like a one-time deal that disappears at the stroke of midnight or any such thing.

SWA doesn't need AWA or U to go away to make lots of money at PHX, PHL, PIT, and LAS. Oh, and MDW too, for what that's worth, contrary to lowecur's predictions of what would never happen there.

 

[FlyBoeingJets]

urANUS

Oh man, you beat me to it.

I do agree with Lowecur about the GECAS vs. SWA statement. GECAS is like a car dealer. They hate anyone who pays cash and only trades it in when the wheels fall off.

GECAS' involvement will include strange, complex covenants on wages, work rules and eventually scope clauses. GECAS' funding will delay any reduction in capacity and make it more painful for everyone. Everyone but GECAS.

Worse yet, younger pilots will expect low wages for the awesome opportunity to fly for a GECAS owned airline.

 

[SWAnnabee]

Have that removed

As for the analcyst lack of good judgement as far as Easter revenue, it will be reflected in most of the airlines as quarterly reports are filed.

What the he11 is an anal cyst and does one have that cut out or burned off?

 

[TexaSWA]

Still a loss on the operations side. $27M balance sheet accounting adjustment, plus Easter falling at the end of March skewed the numbers. Would have been in line with estimates had these two events not shaped the final numbers.

You are confusing a balance sheet with an income statement. The $27 mil was a gain not an adjustment.

 

[T1bubba]

Will SWA ever make money on operations anytime soon? You can whistle all you want past the graveyard, but eventually the stockprice will reflect the inherent risk.

For someone who sells insurance, you seem to understand remarkably little about hedging and risk reduction.

Do you sell any disability insurance? It seems like you have a problem with replacing lost income from wages (operations) with income from another source. You can complain about which column on the balance sheet the money comes from all you want, but I'll be more than happy to have our hedging gains contributing to the bottom line until the price of oil drops back down.

 

[FlyBoeingJets]

Lowecur,

Make money on operations? That would be a good point if competitors were doing better. Lets just see how good Airtran and JetBlue do this quarter.

Have you taken a look at JetBlue's debt load and return on assets? You should be asking the Blue Dudes why their company is not doing better and whether or not they need to rethink their strategy.

 

[lowecur]

What the he11 is an anal cyst and does one have that cut out or burned off?

In your case, just popped with two fingers. Just make sure you close your eyes, cuz it burns.

 

[lowecur]

Lowecur,

Make money on operations? That would be a good point if competitors were doing better. Lets just see how good Airtran and JetBlue do this quarter.

Have you taken a look at JetBlue's debt load and return on assets? You should be asking the Blue Dudes why their company is not doing better and whether or not they need to rethink their strategy.

Good point. AirTran is supposed to lose money this quarter according to the analcysts. Jetblue is supposed to make 2 cents per share. I'll check the financials when they are posted, but I would bet Jetblue would be very close to breakeven on operations this quarter(minus the limited hedging).

I'm not concerned about Jetblue's debt load. It was entirely necessary to build the infrastructure for super growth in the next 5 years. They have a great product, and the only thing that will bring them down is a failure of mgt and employees to continue on the same page. I will bet in 5 years both Jetblue and SWA have labor problems. I just believe the 190 will make the transition through labor turmoil much more palatable for Jetblue.