SWA posts small profit

[RedDogC130]

http://www.reuters.com/article/marketsNews/idINWNAS807520080417?rpc=44

 

[Tanker Clown]

Stand by for the "if it weren't for the fuel hedges...." responses.

BTW, how many carriers will post a full year profit anywhere near SWA's first quarter profit?

 

[mamba20]

I'm sure CAL will when its all said in done. Last year we had a record profit and the 1st quarter is always the weakest quarter. Care to place a wager?

 

[Tonedrvr]

Good job SWA. Congrats on the profit.

 

[CatfishVT9]

Here's the numbers

Southwest Airlines posts lower quarterly profit

Thu Apr 17, 2008 6:37am EDT
NEW YORK, April 17 (Reuters) - Southwest Airlines Co (LUV.N: Quote, Profile, Research) on Thursday posted lower first-quarter earnings as a weak U.S. economy and record fuel costs took their toll on the leading U.S. discount carrier.
Quarterly net profit for Southwest was $34 million, or 5 cents per share, down from $93 million, or 12 cents per share, in the same period last year. (Reporting by Mark McSherry; editing by Mark Porter)

 

[bravodude]

I'm sure CAL will when its all said in done. Last year we had a record profit and the 1st quarter is always the weakest quarter. Care to place a wager?

If you can make money while oil is at all time high than more power to you. Will you beat SWA keep dreaming!

 

[Palomino]

thanks

 

[vixin]

I am sure our stock will tank today. AMR went up after reporting a $328m loss. SWA is sure to go down on this bad news of a profit.

 

[hyperboy]

Nicely done!

Congrats to LUV!


At least someone knows how to run an airline. A profit in these times is great. Kudos to a job well done.



If only other airlines were nearly as effecient ? Whoaaa!

 

[Falcon Jet 1]

Hey Reddog you might want to change the title of this thread cuz the gains were actually more if you read the whole thang!



Gary said: “Considering the weak economy and soaring jet fuel prices, we are very pleased to report a 30 percent year-over-year increase in first quarter 2008 earnings, excluding special items. Our earnings growth resulted from record first quarter 2008 operating revenues of $2.53 billion, which increased a strong 15.1 percent from a year ago, or 8.2 percent on an available seat mile (ASM) basis. Benefiting from the Easter shift to March this year (versus April last year), this was the best quarterly performance since second quarter 2006. With our new revenue initiatives well underway, our load factor of 69.8 percent was a record first quarter performance, and our passenger yields per revenue passenger mile (RPM) were up 4.7 percent compared to first quarter 2007.

 

[Jim Smyth]

I'm sure CAL will when its all said in done. Last year we had a record profit and the 1st quarter is always the weakest quarter. Care to place a wager?

Ya, I will take a little of that action!

NEW YORK (Reuters) - Continental Airlines Inc (CAL.N: Quote, Profile, Research) on Thursday posted a first-quarter loss as record fuel costs continue to roil the industry.
The fourth-largest U.S. carrier reported a net loss of $80 million, or 81 cents a share, compared with a year-earlier profit of $22 million, or 21 cents a share.
Excluding special items, the loss was 86 cents a share. Analysts on average had expected a loss of 94 cents, according to Reuters Estimates.
Revenue increased 12.3 percent to $3.6 billion, helped by fuel surcharges and international growth.
Rising costs and a weak U.S. economy helped prompt a merger deal between two of Continental's biggest rivals, Delta Air Lines (DAL.N: Quote, Profile, Research) and Northwest Airlines Corp (NWA.N: Quote, Profile, Research), and could spur a wave of further consolidation amid fears of falling travel demand.

 

[Pickle]

Loss of the code share income will hurt in subsequent quarters a little bit though.

 

[firstthird]

Actually, the highest number I ever saw for code share was 50 million in revenue for the year. Our total revenue for 2007 was just over 9 billion. So, the highest that codeshare ever got was less than 1% of our revenue.

I suspect we'll take a charge in the 2nd quarter that will wipe our most of the PROFIT (as opposed to revenue) that we made over the entire course of the codeshare, due to payouts owed to ATA customers who booked through our website.

 

[embpic1]

Stand by for the "if it weren't for the fuel hedges...." responses.

BTW, how many carriers will post a full year profit anywhere near SWA's first quarter profit?

Ummm. I think your right. I think SWAs fuel hedges had a definite play in this. Now that being said, I think the fuel hedges that SWA is now enjoying was a brilliant move by your management. I am sure that as the hedges run out, they will have to increase their ticket prices or come up with some other way to compensate for higher fuel prices.

 

[Tejas-Jet]

I am sure that as the hedges run out, they will have to increase their ticket prices or come up with some other way to compensate for higher fuel prices.

Arrrrgggghhhh....OK...here we go again <eyes rolling>

the hedges don't run out. We have a fuel purchasing office where all they do is negotiate and re-negotiate and re-negotiate some more...on the price of fuel...both today's price and in the future.

the hedges are a part of the business plan...for today ...and the future....

Open book test tomorrow...