SWA "dings" up 321M profit!

[Whataburger]

Why not spend some of that money on enhancing safety. Installing life vests on aircraft that fly from the Northeast to Florida, instead of relying on an ill-conceived waiver, would be a start.

If an aircraft ever went down, and that's a lot of water they fly over each day, it would be a catastrophy without lifevests and rafts.

Ding, you are now all free to drown in the Atlantic Ocean!

Ding! You just showed how stupid you are. Do some research homes.

 

[Skyboy722]

Why not spend some of that money on enhancing safety. Installing life vests on aircraft that fly from the Northeast to Florida, instead of relying on an ill-conceived waiver, would be a start.

If an aircraft ever went down, and that's a lot of water they fly over each day, it would be a catastrophy without lifevests and rafts.

Ding, you are now all free to drown in the Atlantic Ocean!

Wow. What an idiot.

 

[Newf Dog]

USA Today article re SWA fuel hedging:

http://www.usatoday.com/money/industries/travel/2008-07-23-southwest-jet-fuel_N.htm

Interesting stat:

Since 1998, it has saved $3.5 billion over what it would have spent if it had paid the industry's average price for jet fuel. That's equal to about 83% of the company's profits over the last 9½ years.

 

[Flying the Line]

http://biz.yahoo.com/prnews/080724/lath510.html?.v=19


Link to the full story above.

SOUTHWEST AIRLINES CO.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share amounts)
(unaudited)

2008

OPERATING REVENUES:
Passenger $2,747
Freight 37
Other 85
Total operating revenues 2,869

OPERATING EXPENSES:
Salaries, wages, and
benefits 839
Fuel and oil 894
Maintenance materials and
repairs 191
Aircraft rentals 38
Landing fees and other
rentals 159
Depreciation and
amortization 148
Other operating expenses 395
Total operating expenses 2,664

OPERATING INCOME 205

OTHER EXPENSES (INCOME):
Interest expense 32
Capitalized interest (6)
Interest income (5)
Other (gains) losses, net (345)
Total other expenses
(income) (324)


INCOME BEFORE INCOME TAXES 529
PROVISION FOR INCOME TAXES 208


NET INCOME $321


NET INCOME PER SHARE:
Basic $.44
Diluted $.44

WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 732
Diluted 737



Their income was still greater than their gains from fuel hedging.

 

[Newf Dog]

July 08,2008 interview with Gary Kelly regarding fuel hedging:

http://www.chicagotribune.com/travel/chicago-southwest-gary-kelly-interview-jul8,0,7106031.story

 

[B727Driver]

So SWA spends money to make money.
Your point is.......what?

 

[SWA/FO]

Why not spend some of that money on enhancing safety. Installing life vests on aircraft that fly from the Northeast to Florida, instead of relying on an ill-conceived waiver, would be a start.

If an aircraft ever went down, and that's a lot of water they fly over each day, it would be a catastrophy without lifevests and rafts.

Ding, you are now all free to drown in the Atlantic Ocean!

dumba$$.

 

[Newf Dog]

From the SWA 2007 annual report:

"Although the Company's 2007 net income of $645 million ($.84 per share, diluted) exceeded its 2006 net income of $499 million ($.61 per share, diluted), the increase was entirely driven by certain gains and losses, recorded in accordance with Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended (SFAS 133), that relate to fuel derivatives expiring in future periods. In fact, the Company's operating income, which excludes these items, actually declined 15.3 percent from 2006 to 2007, primarily due to the significant increase in fuel costs, which the Company was not able to recover through increased revenues."

More from Gary Kelly:

" (SWA)...needs to lift revenue by $1.5 billion a year to offset rising fuel expenses."

If you actually read the annual and quarterly reports it's clear that in fact the advantages of the fuel hedges are going away over time and by the CEO's own admission SWA needs to raise some serious cash. They do have a rock solid balance sheet and loads of cash however so anyone waiting for the demise of SWA will be waiting a long time.

 

[328dude]

Why not spend some of that money on enhancing safety. Installing life vests on aircraft that fly from the Northeast to Florida, instead of relying on an ill-conceived waiver, would be a start.

If an aircraft ever went down, and that's a lot of water they fly over each day, it would be a catastrophy without lifevests and rafts.

Ding, you are now all free to drown in the Atlantic Ocean!

People like this should not be left unattended.

And he's a pilot????? God help us all.

 

[Full of LUV]

Code Share Bonanza

July 08,2008 interview with Gary Kelly regarding fuel hedging:

http://www.chicagotribune.com/travel/chicago-southwest-gary-kelly-interview-jul8,0,7106031.story

I had no idea that westjet was going to be SWA's Canada expansion, and that codeshare is envisioned for every other continent. Sounds like some big codeshare plans for the next few years. Maybe SWA is reinventing the "flight to internantional expansion" that the other majors seem to be hell bent on.