SWA to have a Q1 loss?

[On Your Six]

Just read it on Yahoo finance. The CFO said fuel was 15 cents higher than expected per gallon for the quarter. I suggest adding more ancillary fees (like the other thread suggests), or raise the fares a bit. You have to pass the fuel costs onto the customers, just like Fedex and UPS do each year.


Godspeed!


The OYSter

 

[ASADFW7]

I'll call Gary Kelly and let him know your strategy. I am meeting with him next well, and submitting all the good ideas I read here, like yours, he really treasures your input.

 

[On Your Six]

I'll call Gary Kelly and let him know your strategy. I am meeting with him next well, and submitting all the good ideas I read here, like yours, he really treasures your input.

I bet he wishes he still had those hedges of 10 years ago. Now some know the same feeling the rest of us felt when we couldn't raise fares because of it. That was one reason I got furloughed. It wasn't fun.


Godspeed!


The OYSter

 

[ASADFW7]

I am sorry you got furloughed. That is not an a place any pilot wishes on any other.

I am sure their are a lot of things on the Swa CEO wish list. As for charging for bags, it is called a unique selling position. The data shared is that by not charging for bags SWA has gained more in market share. I am sure there is a statistical curve out there that shows how LCC competition differs in pricing and marketing than traditional mainline carriers.

 

[4day]

Only airline to Taxi still with BOTH eng running. Really smart.

 

[On Your Six]

I am sorry you got furloughed. That is not an a place any pilot wishes on any other.

I am sure their are a lot of things on the Swa CEO wish list. As for charging for bags, it is called a unique selling position. The data shared is that by not charging for bags SWA has gained more in market share. I am sure there is a statistical curve out there that shows how LCC competition differs in pricing and marketing than traditional mainline carriers.

But doesn't Airtran still charge for bags? Can't SWA put a stop to that since they own them? I tend to think that SWA made a whole bunch of those People's Court TV ads about not charging for bags, and now can't go back on that. Yet, they seem to like how AT makes some extra coin at the same time. I think fees are here to stay, and passengers are getting used to them. They may make the difference between being profitable or not.


Godspeed!


The OYSter

 

[labatt]

Only airline to Taxi still with BOTH eng running. Really smart.

Baffling. Curious if the SWA pilots support taxiing with both running?

 

[Dude]

Taxiing with both motors is stupid, says this SWA pilot.

That is supposed to change soon. Let's at least hope so.

 

[Twotter Driver]

I don't think SWA will be the only big carrier to report a loss in Q1. UAL and DAL will also likely post a significant loss. UAL and DAL both posted losses in Q1 2011 and still ended the year with profits north of $1 billion. The first quarter is still a very tough quarter to make money in, especially with Jet A at $135+ a barrel.

 

[waveflyer]

Yes, most of us jump around and see RJ pilots figure out SE taxi, and think it's pretty wasteful that we don't.

The other part of the bag equation is turn time- we are still ultra dependent on quick turns most places, so we don't want to incentize more carryons and a delayed boarding process. AT however, is still more hub and spoke. They have more ground time to deal with that. What I've been told is that if we could charge for bags just in the cities where we do have more connections going on, LAS, MDW, etc we'd be more open to it.
And yes, bag fees do annoy passengers, no matter how much they pay for the ticket. So there's that.

 

[johnnyb]

Good luck with turn times in ATL ( ewr, BOS etc)

 

[Bake]

It's about time we lost some money at SWA. Hopefully, we lose big time. Our stock always goes down when we make money. Obviously now it will go up. Buy some LUV and stick it in your pocket. It might be worth something, like a coke.

 

[BR715]

Hmmm, very scary if true. I wonder what the plan is? On the AT side they are delaying pilots that were supposed to transition, and the 717 lines are about 10 hours less credit each month. On the SWA side you have sick policy abuse and the upcoming pilot contract. Top it off with fleet modernization and management has its hands full. Hopefully in the near future we will have some clarity on some of the future plans. However, in my opinion waiting 3 years to fully integrate AT is a mistake. It seems at AT that they our trying to lose money. Only together as one can we truly kick some butt!

 

[On Your Six]

I don't think SWA will be the only big carrier to report a loss in Q1. UAL and DAL will also likely post a significant loss. UAL and DAL both posted losses in Q1 2011 and still ended the year with profits north of $1 billion. The first quarter is still a very tough quarter to make money in, especially with Jet A at $135+ a barrel.

Not when you are making $600 million plus in ancillary revenue (fees) per quarter. Look at the other thread. It really helps. Tell GK!


Godspeed!


The OYSter

 

[On Your Six]

Hmmm, very scary if true. I wonder what the plan is? On the AT side they are delaying pilots that were supposed to transition, and the 717 lines are about 10 hours less credit each month. On the SWA side you have sick policy abuse and the upcoming pilot contract. Top it off with fleet modernization and management has its hands full. Hopefully in the near future we will have some clarity on some of the future plans. However, in my opinion waiting 3 years to fully integrate AT is a mistake. It seems at AT that they our trying to lose money. Only together as one can we truly kick some butt!

Speaking of 717s......... The rumors are back. No idea if any are true or not.


Godspeed!


The OYSter

 

[BR715]

What are the rumors?

 

[Floyd R. Turbo]

They are stories that go around with little or no factual basis, but that's not important right now.

 

[Diesel-9]

Heard they are going to the other gates in ATL.

 

[Hpilot]

Those hedges were a huge success for SWA, but it was not the only good thing going for the airline. They have kept their debt down and they have the best company culture out there, great reputation too.

It seems simple, either they need to raise fares (add fees) or cut costs. I talked to a senior pilot there that mentioned some areas have gotten lax and fat. Too many years at the top.

There sure are a lot of LUV haters out there I've noticed. Jealously maybe? I know I am.

 

[On Your Six]

Those hedges were a huge success for SWA, but it was not the only good thing going for the airline. They have kept their debt down and they have the best company culture out there, great reputation too.

It seems simple, either they need to raise fares (add fees) or cut costs. I talked to a senior pilot there that mentioned some areas have gotten lax and fat. Too many years at the top.

There sure are a lot of LUV haters out there I've noticed. Jealously maybe? I know I am.

Jealousy? Look at the headlines. They are posting losses, and they don't charge as many fees and don't always go along with fare increases. Who's fault is that? You're right, they have low debt and a nice balance sheet. But, if they want to keep posting profits during this high oil period, then they will have to do something about it. They unfortunately don't set the fares like they used to 10 years ago anymore. Adapt or lose more money. Maybe they will cut more costs to keep their fares the same, but employees won't like that.


Godspeed!


The OYSter