SWA drops other shoe?

[ultrarunner]

It's great that the SWA chest-thumpers parade about each quarter about profits, fuel hedges, plane orders, new markets, etc...and all that's good....

...and in fact I think someone said "who cares where the profit comes from...it's a profit..."

...well, YOUR investors care. And they DO CARE when the stock has been in the toilet for extended periods of time...they can get darn right testy about it actually....then you get downgraded, then the stock dumps more....etc....

...it's a vicious cycle...

Today you trade at 14...and tomorrow or the next day or the next you can be at 10 bucks or less before you know it.

The pressure to perform for your investors and for wall street is incredible beyond belief, since an airline with a market cap of, say, 11 billion, could easily be 5 billion tomorrow, and yes, that could even happen to LUV.

Stay tuned.

 

[Max Powers]

I think he was referring to profit growth of 15 percent a year that is expected to erode .

Growth is already in the single digits you tool. 8% is a single digit. :cartman:

 

[maxblast72]

Quote by GuppyWN

"Our CASM minus fuel is a full cent lower than every legacy and most LCC's out there."


Actually, Airtran's nonfuel CASM is lower than Southwest and was down 5% Q1 2007 vs Q1 2006 while Southwest was up about 1.5% year over year. And with our great negotiating committee bringing us such a great TA, Airtran's CASM won't be going up in the near term due to pilot pay.

Southwest is still has the strongest balance sheet out there but has lost the majority of their nonfuel CASM advantage over the last 3-5 years.

The next five years should be interesting.

 

[CF34-3B1]

That's why we're building the refinery........

 

[luckytohaveajob]

Our CASM minus fuel is a full cent lower than every legacy and most LCC's out there.

Yes SWA is a penny lower but the legacies operate expensive wide bodies flying an international route structure with higher distribution costs associated with international travel. SWA's domestic B737 operation does not have those expenses and is just 1 cent lower in CASM.

Plus the revenues off a wide body far exceed that possible from a small narrow body so while the legacies have a 1 cent higher CASM they have a much greater RASM.

An all B737 fleet with a CASM only 1 cent lower is actually a higher CASM than a multiple Boeing fleet flying a world wide route structure.

SWA costs are up. The question is how will SWA control those costs without double digit growth? Zero to single digit growth won't control costs.

 

[canyonblue]

Hey, here's an idea! How about all you morons hope that Southwest keeps on plugging along so there is no downturn in growth. Only way you guys will ever see a future pay raise is if SWA can maintain their own and raise it more. Unbelievable, no wonder pilot are such frickin morons, hoping that one of the highest paying pilot groups out there actually loses money.

 

[xanderman]

capt?

Growth is already in the single digits you tool. 8% is a single digit. :cartman:

Hey SWA/FO I thought I heard you attended upgrade... Shouldn't it be SWA/CAPT? If so congrats...

Andy

 

[luckytohaveajob]

Only way you guys will ever see a future pay raise is if SWA can maintain their own and raise it more.

Unbelievable, no wonder pilot are such frickin morons.......

SWA pilots won't be the highest paid after you flood your ranks with all your over 60 geezers. You'all will be taking a pay cuts to keep from furloughing.

The only frickin morons I see is a SWAPA pilot trying to destroy the profession with this age 65 crap.

SWAPA pilots with millionaire greed wanting peanuts till you can collect your SS shafting everyone below full captain is what I call a frickin moron.

 

[spinup]

Hey, here's an idea! How about all you morons hope that Southwest keeps on plugging along so there is no downturn in growth. Only way you guys will ever see a future pay raise is if SWA can maintain their own and raise it more. Unbelievable, no wonder pilot are such frickin morons, hoping that one of the highest paying pilot groups out there actually loses money.

Kidding right? Not everybody has a desire to have what you have...

 

[StopNTSing]

Yes SWA is a penny lower but the legacies operate expensive wide bodies flying an international route structure with higher distribution costs associated with international travel. SWA's domestic B737 operation does not have those expenses and is just 1 cent lower in CASM.

Plus the revenues off a wide body far exceed that possible from a small narrow body so while the legacies have a 1 cent higher CASM they have a much greater RASM.

An all B737 fleet with a CASM only 1 cent lower is actually a higher CASM than a multiple Boeing fleet flying a world wide route structure.

SWA costs are up. The question is how will SWA control those costs without double digit growth? Zero to single digit growth won't control costs.

Do you think the legacy CASMs will remain this low going forward? I don't.