Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

SWA LF's continue slump

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

lowecur

Well-known member
Joined
Sep 14, 2003
Posts
2,317
While other LCC's continue to grow at a much faster pace, SWA just can't seem to find the sweet spot on the LF front. I see they have put the midwest on sale to try and get some marketshare back. In the last quarter the emphasis has been on maintaining price and it should show in their 2nd quarter profit numbers, but Gary and Co are now starting to worry about losing market.

http://biz.yahoo.com/prnews/050706/daw009.html?.v=17
 
lowecur said:
While other LCC's continue to grow at a much faster pace, SWA just can't seem to find the sweet spot on the LF front. I see they have put the midwest on sale to try and get some marketshare back. In the last quarter the emphasis has been on maintaining price and it should show in their 2nd quarter profit numbers, but Gary and Co are now starting to worry about losing market.

http://biz.yahoo.com/prnews/050706/daw009.html?.v=17


By your own admission, their second quarter emphasis has been on profit. You also predict that their profits will reflect that emphasis.

If profits continue to climb, what difference does load factor make? Why should a SWA pilot/employee (or any airline pilot/employee since we are discussing this on an aviation venue, not a financial one) care about load factor if they are making money with their presently achieved load factor?

I'd rather look at the numbers and say, "Wow, SWA is so well managed that they can make money with fewer pax than the other guys. Look how much MORE money they'll make when conditions improve".

Anyway, thanks for the link.

enigma
 
enigma said:
By your own admission, their second quarter emphasis has been on profit. You also predict that their profits will reflect that emphasis.

If profits continue to climb, what difference does load factor make? Why should a SWA pilot/employee (or any airline pilot/employee since we are discussing this on an aviation venue, not a financial one) care about load factor if they are making money with their presently achieved load factor?

I'd rather look at the numbers and say, "Wow, SWA is so well managed that they can make money with fewer pax than the other guys. Look how much MORE money they'll make when conditions improve".

Anyway, thanks for the link.

enigma
I agree Enigma. They definitely know how to manage their pricing and capacity. However, they are beginning to realize that it's important to maintain marketshare against those legacys and LCCs that will be a viable threat in the future. With more and more of the public using the internet to price shop, it's no longer taken for granted that SWA has the lowest fare. I think even the unsophisticated buyer that SWA has catered to is shopping around. They will need to be on their toes in order to maintain the right balance between price and loyalty.
 
chris69 said:
Belf 60-63%
I have my doubts about that Chris. I think the BELF will be 65-67%. I'll let you know when the 2nd Q numbers come out.
 
lowecur said:
I have my doubts about that Chris. I think the BELF will be 65-67%. I'll let you know when the 2nd Q numbers come out.

Can you also let me know who will get the NL wild card! I need to call my bookie!
SHEESH!
737
 
lowecur said:
but Gary and Co are now starting to worry about losing market.

Really, did they tell you that?

they are beginning to realize that it's important to maintain marketshare against those legacys and LCCs that will be a viable threat in the future.


Right, they just realized that within the last couple of months. What a rude awakening for them to finally learn the importance of market share after all these years.
 
737 Pylt said:
Can you also let me know who will get the NL wild card! I need to call my bookie!
SHEESH!
737
Marlins:)
 
lowecur said:
While other LCC's continue to grow at a much faster pace, SWA just can't seem to find the sweet spot on the LF front. I see they have put the midwest on sale to try and get some marketshare back. In the last quarter the emphasis has been on maintaining price and it should show in their 2nd quarter profit numbers, but Gary and Co are now starting to worry about losing market.

http://biz.yahoo.com/prnews/050706/daw009.html?.v=17

So if I read in-between the lines correctly, this means demise of SWA is imminent? If I were ATA I'd get my ducks lined up and buy'em out.
 

Latest resources

Back
Top