SWA reports $159M profit for 2nd Q

[Widow's Son]

>>The same SWA that for years and years was the scourge of the industry in the eyes of every other company's pilots for "bringing down the profession" with substandard pay.<<

That's actually not true. SWA has always been a well paying airline. It just pays its pilots differently. Its hourly pay has been lower, but its inherent productivity makes the hourly comparison less realistic than other comparisons. For decades their monthly and annual compensation has been very competitive. ALPA did a very comprehensive study on that years ago that showed that working the same amount of days and same length of days, the SWA pilots were earning very competitive total compensation with lower hourly flight pay simply because they weren't sitting around as much as everyone else and earning only per-diem. They were also the last airline to go on the "B-scale" and the first to get rid of it.
Their pay raises are reasonable and steady and are something that their management knows they can afford. They don't cave to the huge increases that relatively quickly come crashing down. What effect does that wage volitility have on bringing down the industry?
The retirement argument is stupid too. SWA would have to pay out less money if they had a defined benefit pension plan rather than the 401k/ profit sharing combination they have. The reason the other plans are sunk is because their airlines stopped making contributions all the while SWA was dutifully paying their matches and profit sharing contributions like they always have and always will. Over the last 20 years their combined 401k match and profit sharing contributions have exceeded the outlay per pilot of even the most generous legacy retirement plans of the glory days. The only difference was, the profit sharing wasn't guaranteed and therefore never showed up in comparisons. The present situation shows that the good will and profitability of SWA soundly beats whatever guarantees the other contracts thought they had.

 

[FatesPawn]

>>>Didn't ATA have a great CASM?<<<

I didn't call ATA's payroll bloated.

 

[Yank McCobb]

>>The same SWA that for years and years was the scourge of the industry in the eyes of every other company's pilots for "bringing down the profession" with substandard pay.<<

That's actually not true. SWA has always been a well paying airline. It just pays its pilots differently.

I have worked for SWA for over 25 years. While I know this and you know this, that still doesn't change the fact that for 20+ of those years, I have heard plenty of times how we were bringing down the profession with our pay. Regardless of what argument or spin you want to put on it, it doesn't change how it was for so many years.

 

[SWA/FO]

SWA is saving the Pilot profession! Pay has only gone up since I have been here. Gives me something to think about for my next 8 days off.

I love it!!!!!

 

[milehigh6080]

As much as everyone else in the industry bemoans the fact that Southwest is "bringing down the industry" I find it awfully suspicious that they have stacks and stacks of resumes on file from applicants who are eager to work there.

My guess is that there are plenty of pilots at the other majors like United, AA, USAir and the rest who complain about the "EVIL" Southwest airlines all day long and then go home and wait by the phone for the call from the People Department to come on in for an interview. Then on the day of the interview they'll temporarily take off their comfortable 'crusty old ticked off airline pilot' clothes and put on their 'i'm positive, outgoing and a teamplayer' costume and try to fake their way into a job.

Its somewhat frustrating to me as someone who has always had a lot of respect for Southwest, it is and always has been the only people carrying airline that I want to fly for, that I'll eventually be competitive and will have to compete against these types of applicants, but I have faith in their process and know that the PD has seen it all and will most likely be able to see right through 99% of the fakers.

Any way you slice it, Southwest is a profitable airline and it's not worth arguing that point with jealous outsiders who still refuse to accept the fact that it's not the mid '70s anymore and the models of United et al just don't work anymore. Congratulations to Southwest on a profitable quarter, regardless of how big or small those profits are. Hopefully I'll see you all at work in a couple years.

 

[Jim Smyth]

milehigh6080, There pretty good at the selection process. Kinda hard to fake your personality with 3 different interviewers with the questions they ask. You have the attitude that will get you in the door! Hope to see you on line one of these days! ;-)

 

[milehigh6080]

Thanks Jim. I'm just a lowly freight dog now, but I'm drinking my milk and getting lots of exercise and maybe one day I'll grow up to be a SWA Pilot. Maybe I'll bump into you in a couple years.

 

[capt. megadeth]

As much as everyone else in the industry bemoans the fact that Southwest is "bringing down the industry" I find it awfully suspicious that they have stacks and stacks of resumes on file from applicants who are eager to work there.

I think every airline out there that is hiring has stacks and stacks of resumes so I really don't think that means anything. The fact is is that right now SWA is one of the best pax carriers to work for. (See Yank, I didn't rip on your precious little Southwest)

 

[TAZ MAN]

Taxes are $97M there Taz, and no matter where you put the hedges......you still have to pay taxes on them. You want to use gross operating profits without taxes, then be my guest and make yourself feel better.

Lowecur,

I must be missing something. If there were no hedges then wouldn't the operating profit have been 81 mil before taxes? If there were no profit on hedges how would you be taxed on something that didn't exist?

 

[climbhappy]

question: will Delta following SWAs lead in raising prices finally bring to an end the pricing carnage that has driven wages down and ruined an otherwise great career field for most?