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Southwest Reports 2Q Net Profit Of $159 Million  
User currently offlineScottB From United States of America, joined Jul 2000, 6807 posts, RR: 32
Posted (9 years 4 months 1 week 6 days 17 hours ago) and read 5888 times:

I'm surprised no one has posted a topic on this, but here's the earnings release:

Southwest Airlines Reports Second Quarter Earnings of $159 Million; Diluted Earnings Per Share of $.20

Some of the highlights:


  • Operating income was $277 million on revenue of $1.944 billion, for an operating margin of 14.2%.
  • Operating and net income were both up over 40% year-over-year.
  • Fuel hedging saved the company $196 million in the quarter; operating income would have been around $100 million without hedges when effects on profitsharing are also taken out.
  • CASM was down 3.5% to 7.81 cents in spite of an increase of over 18% in fuel expense per ASM.
  • Southwest carried over 20 million revenue passengers in the quarter.
  • Southwest ended the quarter with nearly $2.3 billion in cash -- over 120 days' operating expenses.
  • Unit revenue is expected to be up in the third quarter (it was down by 0.3% in the second quarter).


I wonder what Padcrasher will say...

63 replies: All unread, showing first 25:
 
User currently offlineBishopOfPHL From United States of America, joined Apr 2004, 105 posts, RR: 0
Reply 1, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5834 times:

Kind of puts to bed (finally) the argument that without the hedges WN is toast. $100MM without the hedges surely isn't anything to get bent out of shape about; definitely leaps and bounds above the rest. I'm not even a WN lover (haven't ever flown them actually - never had a need to), but I sure do admire what they do do from a business standpoint.

User currently offlineTom in NO From United States of America, joined Nov 1999, 7194 posts, RR: 32
Reply 2, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5829 times:

Yep, give the flying public what they want, and they'll come flocking to you. A lesson the legacy carriers are either still trying to learn or haven't figured out. WN just keeps on doing what they do best. I'm proud to give them all my domestic flying business.

Thanks for posting the release.

I too will be interested to see what the Southwest-bashers have to say.

Tomat MSY



"The criminal ineptitude makes you furious"-Bruce Springsteen, after seeing firsthand the damage from Hurricane Katrina
User currently offlinePadcrasher From , joined Dec 1969, posts, RR:
Reply 3, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5807 times:

I'll say the exact same thing I've been saying for the last 6 Months.

Southwest will/did trail the industry in RASM improvement.

They will/did trail in CASM improvement.

The Hedging gains will subside.

The margin gap between the majors and lcc is quickly becoming a thing of the past.

They had a 3% net margin without the hedging gains. Compared to CO's numbers coming up will be an almost meaningless difference.

Here's Jamie Baker Yesterday telling you exactly what I've been telling this board for the last 6 Months.

U.S. network carriers are "well on the way" to a cost structure
that
> will allow them to weather future market downturns, although fuel
> costs are masking the significant gains they are making when
> compared with low-cost carriers, JP Morgan analyst Jamie Baker
told
> lawmakers yesterday.
>
> If it wasn't for fuel, "all [industry] gauges would be reading
into
> the green" for the first time since early 2001, Baker said during
a
> Senate aviation subcommittee hearing on the financial condition of
> airlines. The last time industry-wide costs excluding fuel were
this
> low was 1997, "and they are expected to head lower still," Baker
> said. Airfares and revenue are continuing to rise "with no
apparent
> offset on demand." Without fuel costs, American and Continental
> would have had just completed their most profitable second-
quarters
> ever, he said.
>
> At the same time, low-cost carriers are feeling more pressure, he
> said. Southwest has admitted that without its fuel hedges, it
> probably would not have been profitable this year. Southwest also
> must face the fact that its labor costs are now higher than the
> industry average, although reducing labor costs would be a very
> difficult proposition, Baker believes. Labor cost cuts will
> eventually be needed if Southwest wants to "remain competitive
with rapidly improving legacy carriers."
>
>> The industry is not suffering because some carriers are operating
> under bankruptcy protection, Government Accountability Office
> Director of Physical Infrastructure JayEtta Hecker told
> lawmakers. "Bankruptcies are endemic to the airline industry,"
> Hecker said, and there is no evidence that airlines in bankruptcy
> contribute to overcapacity or that they "harm competitors by
> reducing fares below what other airlines are charging." -AS


User currently offlineLowecur From United States of America, joined Jan 2005, 585 posts, RR: 0
Reply 4, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5782 times:

Actually operating income was -($37M). $159M profit minus $196M investment income.

LF's continue to trend downward while the rest of the industry trends up. This is a precursor that SWA is gradually losing marketshare. As the Jetblue's, AirTrans, Frontiers, and AWA's continue to grow exponentially faster than SWA, the obvious will become more apparent to the less informed.

SWA has been banking on the failure of a major airline to fluff up their bottom line. The only failure in the next 12 months will likely be FLYi. NWA and DL will both file by Oct 17th, and begin to get their respective houses in order. UAL and US will emerge from bankruptcy shortly, and could be quite viable for years to come. AMR and CAL should also remain stable for years to come as they continue to morph. Very few crumbs will fall on the floor.

SWA will be forced to reduce their bloated payroll to compete. This will lead to acrimonious relations with their various union employee groups.


User currently offlineBlsbls99 From United States of America, joined Sep 2004, 345 posts, RR: 0
Reply 5, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5781 times:

So, Padcrasher, which of the legacy carriers do you think will post an operating income of $100 mil like Southwest did without the fuel hedging?


319 320 313 722 732 733 735 73G 738 739 742 752 763 772 CRJ D9S ERJ EMB L10 M88 M90 SF3 AT4
User currently offlinePadcrasher From , joined Dec 1969, posts, RR:
Reply 6, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5771 times:

No Lowecur. It's more like they would have made 58 Mil. You just don't take the 196 million in hedging off the net profit. You need to go back and figure in profit sharing 15% and corporate tax rates of 35%

User currently offlineBlsbls99 From United States of America, joined Sep 2004, 345 posts, RR: 0
Reply 7, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5751 times:

Will any of the majors report operating income of $58 mil then?


319 320 313 722 732 733 735 73G 738 739 742 752 763 772 CRJ D9S ERJ EMB L10 M88 M90 SF3 AT4
User currently offlinePadcrasher From , joined Dec 1969, posts, RR:
Reply 8, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5738 times:

Quoting Blsbls99 (Reply 7):
Will any of the majors report operating income of $58 mil then?

This isn't a game of darts. It's a business. A 1% margin difference might buy you 1 more Quarter of bragging rights but it does absolutely nothing for you going up against Continental.


User currently offlineGoingboeing From United States of America, joined Dec 1999, 4875 posts, RR: 16
Reply 9, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5709 times:

Quoting Lowecur (Reply 4):

LF's continue to trend downward while the rest of the industry trends up.

If market share is attained at the cost of profits, give me low market share every time.

Quoting Lowecur (Reply 4):
As the Jetblue's, AirTrans, Frontiers, and AWA's continue to grow exponentially faster than SWA, the obvious will become more apparent to the less informed.

Once again, when market share pays the bills, we might worry. Right now, Southwest got those numbers with a load factor (market share) that would KILL the JetBlues, Airtrans, Frontiers and AWA (who will kill themselves with the US merger). Jetblue has a load factor of 85.9%...obviously winning the market share race somewhere - but their break even load factor was 82.9%...I'd be more worried about their increasing costs pushing that number higher.

Quoting Lowecur (Reply 4):

SWA has been banking on the failure of a major airline to fluff up their bottom line.

No...but they'll welcome the failure of a major or two. Right now, the other legacies have been banking on the failure of a major airline to keep them out of bankruptcy.

Quoting Lowecur (Reply 4):
NWA and DL will both file by Oct 17th, and begin to get their respective houses in order.

So..."getting your houses in order" pretty much means after you've screwed your employees, let's screw the shareholders and creditors? Sorry...the time for bankruptcy reform is NOW...when the entire US aviation industry is leaning on the bankruptcy courts for survival, something ain't right.

Quoting Lowecur (Reply 4):
AMR and CAL should also remain stable for years to come as they continue to morph.

If AMR and CAL can remain stable for years to come without traipsing into bankruptcy court, more power to them. I think Southwest would welcome true competition that didn't have to go thru bankruptcy to compete.

Quoting Lowecur (Reply 4):
SWA will be forced to reduce their bloated payroll to compete. This will lead to acrimonious relations with their various union employee groups.

Golly...it wasn't that long ago that Southwest was "dragging down the industry". Today they've got a "bloated payroll". IMHO, if NWA and Delta file bankruptcy - then Southwest needs to file right after them and REALLY "level the playing field". Pretty soon, only Southwest, Jetblue, Airtran, and American will be the only airlines who are actually paying their bills in full AND competing.


User currently offlineLowecur From United States of America, joined Jan 2005, 585 posts, RR: 0
Reply 10, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5697 times:

Quoting Padcrasher (Reply 6):
No Lowecur. It's more like they would have made 58 Mil. You just don't take the 196 million in hedging off the net profit. You need to go back and figure in profit sharing 15% and corporate tax rates of 35%

You can move the numbers around all you want. Everyone pays corp income tax so that's a wash. When I compare carriers, I look at the net income. If it isn't profit sharing, then you have other carriers paying millions into their pensions, which SWA doesn't have to do.

SWA includes $196M investment income in their operating side of the equation. I'm not an accountant, but I would think most companies separate the investment income out from the operating side of the statement.

Right or wrong "accounting wise", this is how I choose to look at how a carrier is doing comparitively.


User currently offlineBishopOfPHL From United States of America, joined Apr 2004, 105 posts, RR: 0
Reply 11, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5694 times:

A simple look at recent airline news (e.g., Yahoo! Finance airline news) paints a less rosy picture of what's going on with the major's are going through than does the JP Morgan Analyst. For instance "Delta raising fare cap due to fuel prices" or "United seeking $310MM increase in loans" and various unresolved NW labor issues. Fact remains, any sane investor looking to buy shares of an airline stock likely aren't going to piss away their money in DL, NW, AMR or other non-bankrupt majors' stock. Like 'em or not, WN management has a lot of something the majors' management do not - basic business competence.

That being said, I'm looking forward to seeing the numbers when CO, AA, and others post earnings. AMR Corp and CO report earnings on 7/20, AS & DL on 7/21 and NW on 7/26. With the exception of CO, AS and (maybe) AA, I'd expect a sea of red on those days. But let's hold off the "dart" game until then.


User currently offlineBishopOfPHL From United States of America, joined Apr 2004, 105 posts, RR: 0
Reply 12, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5668 times:

Quoting Lowecur (Reply 10):
I'm not an accountant, but I would think most companies separate the investment income out from the operating side of the statement.

Look at their cash flow statement, which I consider a lot more meaningful than a P&L stmt. WN's second quarter cash flow isn't available until they file their Q, but historically, they've had strong positive cash flow from operating activities and conisistent cash outflow in capital expenditures.


User currently offlineLowecur From United States of America, joined Jan 2005, 585 posts, RR: 0
Reply 13, posted (9 years 4 months 1 week 6 days 16 hours ago) and read 5669 times:

Quoting Goingboeing (Reply 9):
If market share is attained at the cost of profits, give me low market share every time

SWA's BELF was 64.7% this quarter. It would have been closer to 74% without investment income.

Quoting Goingboeing (Reply 9):
Once again, when market share pays the bills, we might worry. Right now, Southwest got those numbers with a load factor (market share) that would KILL the JetBlues, Airtrans, Frontiers and AWA (who will kill themselves with the US merger). Jetblue has a load factor of 85.9%...obviously winning the market share race somewhere - but their break even load factor was 82.9%...I'd be more worried about their increasing costs pushing that number higher.

It would also kill SWA without investment income. Again BELF would be closer to 74%.

Quoting Goingboeing (Reply 9):
So..."getting your houses in order" pretty much means after you've screwed your employees, let's screw the shareholders and creditors? Sorry...the time for bankruptcy reform is NOW...when the entire US aviation industry is leaning on the bankruptcy courts for survival, something ain't right.

We agree. You will see some of that effective on Oct 17th.

Quoting Goingboeing (Reply 9):
If AMR and CAL can remain stable for years to come without traipsing into bankruptcy court, more power to them. I think Southwest would welcome true competition that didn't have to go thru bankruptcy to compete.

They will get all the competition they want in the next 5 years.


User currently offlineLowecur From United States of America, joined Jan 2005, 585 posts, RR: 0
Reply 14, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5643 times:

Quoting BishopOfPHL (Reply 12):
Look at their cash flow statement, which I consider a lot more meaningful than a P&L stmt. WN's second quarter cash flow isn't available until they file their Q, but historically, they've had strong positive cash flow from operating activities and conisistent cash outflow in capital expenditures.

The airline business is a cash cow when things are running smoothly quarter to quarter. I try to see things 2 to 3 years ahead based on near term trends. I don't like SWA because of these trends, plus they have a new contract with the pilots to contend with in the next 12 months and the back end of the recent FA contract is overloaded in the next few years.


User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 15, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5626 times:

Ok padcrasher, let me play "devils advocate" for a second if I may......

Southwest was smart enough to do some major fuel hedging, while the majors were not. It is this type of strategic thinking and foresight about the logistics of the business that have placed them at a significant advantage for the last 4 years over the legacies. Professionals speak of logistics, not tactics.

Don't you think they (Southwest) are smart enough to know that the Legacies would have to reduce costs to become more effective competitors? Given that the legacies are doing exactly that, don't you think that Southwest has something else in mind to offset/combat the strategy of the legacy carriers and other LCC's since they were smart enought to see this coming??

CO (despite excellent management) and the other majors did not foresee the rise in fuel prices and failed to hedge.



One Nation Under God
User currently offlineScottB From United States of America, joined Jul 2000, 6807 posts, RR: 32
Reply 16, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5629 times:

Quoting Lowecur (Reply 4):
Actually operating income was -($37M). $159M profit minus $196M investment income.

False. Learn to read a P&L and try again. The $196 million in reduction to fuel & oil expense is an operating number, not a net number. If operating profit goes down, so do taxes and profitsharing. At least Padcrasher gets this.

Quoting Lowecur (Reply 4):
LF's continue to trend downward while the rest of the industry trends up.

Their load factors are down in large part because they have added more capacity in total ASM's than anyone else in the industry. They've added over twice as many seat-miles as jetBlue and increased RPM's by a significant margin as well. jetBlue's percentage growth is higher since they're smaller to begin with. Southwest's market share continues to grow as since they increased RPM's more than any other U.S. carrier during the quarter.

Quoting Lowecur (Reply 4):
As the Jetblue's, AirTrans, Frontiers, and AWA's continue to grow exponentially faster than SWA,

Neither Frontier nor America West grew ASM's at a greater percentage rate than Southwest during the quarter, and AWA's RPM growth was actually lower in percentage terms than Southwest's. And again, adding 10 planes to an airline with 75 planes will usually produce greater percentage growth than adding 35 planes to an airline with 400+.

America West is going to be preoccupied with its merger with US Airways and their fleet count is projected to remain essentially flat while US sheds roughly 60 jets vs. 2004.

Quoting Lowecur (Reply 4):
SWA has been banking on the failure of a major airline to fluff up their bottom line.

Nope. Their growth pattern at present is based on where they see good markets for their service. They have contingency plans, I am certain, in case a major network carrier were to liquidate, but it is clear that this is not necessary for them to succeed. Their bottom line is already quite healthy!

What they will continue to do is put pressure on the inefficient (i.e. high-cost) players in the industry. The "overcapacity" in the industry is a surplus of high-cost capacity chasing yields that don't cover costs.

Quoting Lowecur (Reply 4):
SWA will be forced to reduce their bloated payroll to compete.

At present, Southwest can afford to pay well because their employees are more efficient than virtually all others in the industry. Their headcount is down 0.1% year-over-year in spite of an 11.9% increase in capacity through the first six months of 2005. Probably only jetBlue gets more ASM's per employee, but Southwest blows them out of the water with 12.5% higher revenue per employee.


User currently offlineLowecur From United States of America, joined Jan 2005, 585 posts, RR: 0
Reply 17, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5602 times:

Quoting ScottB (Reply 16):
False. Learn to read a P&L and try again. The $196 million in reduction to fuel & oil expense is an operating number, not a net number. If operating profit goes down, so do taxes and profitsharing. At least Padcrasher gets this.

You can quote all the accounting principals you want Scott, but investing in heating oil is not a reduction in fuel and oil expense. They could have very easily invested in porkbellys, it's still futures investing and it does not belong in the operating statement.


User currently offlinePlanespotting From United States of America, joined Apr 2004, 3531 posts, RR: 5
Reply 18, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5597 times:

and the stock is up up and up ^__^


Do you like movies about gladiators?
User currently offlineTango-Bravo From United States of America, joined Jun 2001, 3806 posts, RR: 29
Reply 19, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5587 times:

Quoting BishopOfPHL (Reply 11):
Like 'em or not, WN management has a lot of something the majors' management do not - basic business competence.

Actually, from what I see, the most apparent difference between the management style of Southwest and the U.S. legacies is more about Southwest not allowing oversized egos do their thinking on which they base their business decisions.

A word to legacy-lovers: Your never-ending "what if" grasping at straws about why WN should be losing money while your beloved legacies should be making money are becoming very worn-out. Please get back to us when it actually happens instead of wearying us with the numbers contortions you do to "prove" your premise that WN is no more than a quarter or two away from non-profit status while your beloved legacies are money printing machines waiting to happen only to be proven wrong... again and again.


User currently offlineSaigonhouston From United States of America, joined Apr 2004, 398 posts, RR: 0
Reply 20, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5547 times:

The only thing that I'm not quite understand is that why southwest stock doesn't change much in value. The company is doing very well compared with their peers. However, the stock is not reward itself with a better corporate earning. Their range from $12-17 per share and stay within these range for a long time. Basically, LUV is standing at the range between $12-17 in the last 8-9 years and never surpass $25 per share.

Saigonhouston


User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 21, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5537 times:

Quoting Saigonhouston (Reply 20):
The only thing that I'm not quite understand is that why southwest stock doesn't change much in value. The company is doing very well compared with their peers. However, the stock is not reward itself with a better corporate earning. Their range from $12-17 per share and stay within these range for a long time. Basically, LUV is standing at the range between $12-17 in the last 8-9 years and never surpass $25 per share.

The industry is too volitile with many uncertanties; this is a real investment for the long term to buy an airline stock. When they go down, they really go down. Going up is the real battle. Buy low and hang on for a long time to see real profits.



One Nation Under God
User currently offlinePlanespotting From United States of America, joined Apr 2004, 3531 posts, RR: 5
Reply 22, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5527 times:

yeah, airline stock is not a quick gainer by any means (unless there is an unusual situation, such as a merger like the US Air - America West merger that sent both stocks climbing the day the merger was announced)


Do you like movies about gladiators?
User currently offlineBishopOfPHL From United States of America, joined Apr 2004, 105 posts, RR: 0
Reply 23, posted (9 years 4 months 1 week 6 days 15 hours ago) and read 5512 times:

Quoting Saigonhouston (Reply 20):
The only thing that I'm not quite understand is that why southwest stock doesn't change much in value. The company is doing very well compared with their peers. However, the stock is not reward itself with a better corporate earning. Their range from $12-17 per share and stay within these range for a long time. Basically, LUV is standing at the range between $12-17 in the last 8-9 years and never surpass $25 per share.

In addition to it mostly being due to LUV being in an overall crappy industry with stagnant growth at best, don't forget the effect of their quarterly dividends and series of stock splits, especially in the late 90's. They appear to aim to keep the actual price per share under $25.


User currently offlineCjpark From United States of America, joined Feb 2005, 1266 posts, RR: 6
Reply 24, posted (9 years 4 months 1 week 6 days 14 hours ago) and read 5490 times:

Quoting DAYflyer (Reply 15):
Southwest was smart enough to do some major fuel hedging, while the majors were not. It is this type of strategic thinking and foresight about the logistics of the business that have placed them at a significant advantage for the last 4 years over the legacies. Professionals speak of logistics, not tactics

First of all Southwest was able to hedge against fuel costs. Rest assured had the competitors had cash in hand they too would have been able to hedge against fuel costs too. Boasting of strategic thinking and foresight about the logistics of the business as being a quality that only WN possesses is a little much.

Granted WN had a great quarter and Kudos to the airline. Lets just see if they can stay on top of the game.



"Any airline that wants to serve the [region] can go to DFW today and fly anywhere they want," WN spokesman Ed Stewart
25 Saigonhouston : DAYflyer..........8 years ago, I picked LUV as my senior project for my Financial Mgmt class the stock back then was around $14 and it currently trade
26 Luvfa : Herb said it himself to my training class, we don't concern ourself with market share just profitability! Fact is there are more LCC now than ever be
27 707lvr : While I probably wouldn't buy an airline stock, LUV's charts over the past 25 years are pretty impressive. A $14 share today would have cost you 14 ce
28 Post contains links Mariner : No. Delta had fuel hedges in place and sold them in early 2004 to get the cash: http://news.morningstar.com/news/DJ/...6241605DOWJONESDJONLINE000929.
29 B744F : I'm sure their stock doesn't explode like most other companies when in good times because they are trying to follow the law, and not count stock optio
30 A330323X : Will any of the majors report operating income of $58 mil then? Um, yes. AA/CO/US will all likely report that much operating income for the 2nd quarte
31 Luvfa : A challenge that we face every day. Now more than ever!
32 Ejmmsu : Very well put !! Welcome to my R.U. list. The proof is in the pudding. WN is making money right now, and the legacies aren't. WN is treating their em
33 Luvfa : Unlike other carriers, Southwest tries to trim costs by turning to other areas and not just labor. It's true our labor costs have risen, but our non-
34 Aa777jr : Good news for WN. That's too bad to hear that DL sold their fuel hedging in 2004 before they knew the price of oil was gonna be above $60/barrel. At l
35 Padcrasher : That makes no sense. You think Delta's only attempt at cutting costs was a 10% pay cut? * Fleet simplification * Higher utilization rates/shorter tur
36 Luvfa : 9 of Almost every item on your list we have done since day 1!
37 Padcrasher : Great so we agree. You were totally off base saying only labor was being looked at, and the things that are being done make sense. Another convert!..
38 ScottB : By the same logic, insurance isn't an operating expense, since what insurance really does is spread anticipated future liability (or the possibility
39 B744F : Yes but what about * reducing the outrageous executive salary/bonus/severence packages
40 Goingboeing : How about this then...Southwest mangagement (and employees) have always operated by treating the good times as if they were bad times. In other words
41 BishopOfPHL : Scott, thanks for slapping some sense into folks re: accounting rules, stock splits, etc. GAAP exists for a reason - uniformity. You can't say LUV sho
42 Lowecur : Logic according to Scott. Actually catastrophic property/liability insurance protects the carriers from absorbing a loss that would put them out of b
43 AirRyan : I thought I read that AMR posted the largest gains and that CO was right there with SouthWest?
44 ScottB : You do realize that corporations and governments self-insure, right? In essence, they establish reserves which are intended to cover catastrophic los
45 Jetdeltamsy : attention southwest bashers.... you may hate 'em, but clearly they are doing something right over there.
46 Lowecur : Self Insured Retentions are finite Scott. They still have to carry Cat Insurance for Liability & WC, and they still need to carry hull insurance for
47 SWACLE : Actually, 1 share would be 6.1875 shares now, and an investment of 100 shares at $14/share then ($1400) would be worth $9015.19 today (618.75 shares
48 AirWillie6475 : And what is it that Southwest gives to the public that legacys don't? Have you seen the airfares lately? They are as good or cheaper than WNs.
49 N200WN : Finally...after God know's how many discussions about Southwest's labor costs...someone has the sense to relate it to productivity. Southwest does no
50 PlanesNTrains : It's their strategic thinking (read Vision) that allowed them to do so. It was the legacies lack of said Vision that prevented them from doing the sa
51 Lowecur : A retro perspective should be given it's due. IMO, todays team is in a no win situation with labor, the legacys makeover, and the exponential growth
52 Goingboeing : For the 21 day advance, stay over a Saturday, travel on a Tuesday fare, yes most legacies will beat Southwest. Fly down this morning and fly back thi
53 Cjpark : The reasoning to cut costs in good times as well as in bad is endemic in American Business of all types from airlines to semiconductors you will find
54 Goingboeing : Maybe it is arrogant, but it's also being proven to be true. Look at the other legacies...rolling along until the bad times come, then it's off to th
55 Post contains links AirRyan : Southwest's stock is no stronger today than it was 5 years ago, and American and Continental both posted greater gains in stock in the last year than
56 PlanesNTrains : As you can see, the comments made by myself and others related to the commercial airline industry. I don't think anybody said they were the only comp
57 N77014 : Last I heard CO hadn't made a dime since 9/11. And it wasn't making any money for them either. Seeing DL lift their price cap by $100 is proof.
58 ScottB : Four splits at three for two each time means that 16 shares would now be 81 shares; that's roughly five for one. Now, if you reinvested the dividends
59 Lowecur : My response was based on why heating oil futures should not be included on the operational side of the statement and why insurance should be included
60 ScottB : Most businesses don't face the same level of direct exposure to commodities price fluctuations, either. It'd be great if there were a futures market
61 Luvfa : Hadn't both those companies stock been in the single digits at one time or another during the past 3 years? Well if the stock is trading that low of
62 Lowecur : Thanks for the advice tyro, am I free to move about the country too?
63 Post contains images PlanesNTrains : Wouldn't that be convenient. Too bad they're AIRLINES! One thought always springs to mind though - old habits die hard. If the airlines start making
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