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WN Announces Q1 Results  
User currently offlineBD338 From United States of America, joined Jul 2010, 697 posts, RR: 0
Posted (3 years 3 days 4 hours ago) and read 6596 times:

http://www.southwest.com/html/cs/inv...ex.html?int=GFOOTER-ABOUT-INVESTOR

2011 Q1 Net Income $5M (2010 Q1: $11M) including special charges
2011 Q1 Net Income $20M (2010 Q1: $24M) excluding special charges

Special charges included items related to the fuel hedge program and in 2011 $9M in fees associated with the Air Tran acquisition.

The operational results:

2011 Q1 Income: $114M (2010 Q1: $54M) including special charges
2011 Q1 Income: $110M (2010 Q1: $102M) excluding special charges

2011 Q1 fuel average: $2.96/gallon (including $13M in "unfavorable cash settlements for fuel derivatives" - hedging cost money this quarter, Q2 is expected to be $3.35/gallon)

Overall steady operational performance (Net income figures are impacted by the acquisition costs), good job making a profit especially as costs increased by 9.2% year on year largely due to a 26% increase in fuel.

[Edited 2011-04-21 04:32:06]

29 replies: All unread, showing first 25:
 
User currently offlinesccutler From United States of America, joined Jan 2000, 5396 posts, RR: 26
Reply 1, posted (3 years 3 days 3 hours ago) and read 6319 times:

Sound planning, a steady hand on the yoke, efficient and well-motivated people, respectful treatment of customers. THese things add up.


...three miles from BRONS, clear for the ILS one five approach...
User currently offlineFL787 From United States of America, joined Aug 2007, 1531 posts, RR: 12
Reply 2, posted (3 years 3 days 1 hour ago) and read 5992 times:

Looks like it's official, the press release says the merger will close May 2nd.


717,72S,732/3/4/5/G/8/9,744,752/3,763/4,772/3,D9S/5,M8/90,D10,319/20/21,332/3,388,CR2/7/9,EM2,ER4,E70/75/90,SF3,AR8
User currently offlineMSPNWA From United States of America, joined Apr 2009, 1832 posts, RR: 2
Reply 3, posted (3 years 2 days 22 hours ago) and read 5622 times:

WN again leading the way. Not a big profit, but a profit nonetheless in a quarter where the competition is in the red. The entire company is doing a good job.

User currently offlineAeroWesty From United States of America, joined Oct 2004, 20322 posts, RR: 63
Reply 4, posted (3 years 2 days 19 hours ago) and read 5404 times:

"Bags fly free" is all one has to say. WN has done the least in the race to unbundle airfares and performed the best of the legacy carriers so far in Q1.


International Homo of Mystery
User currently offlinehatbutton From United States of America, joined Mar 2005, 1477 posts, RR: 14
Reply 5, posted (3 years 2 days 19 hours ago) and read 5390 times:
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Quoting MSPNWA (Reply 3):
WN again leading the way.

Huh? AS posted a net profit of $29.5 million.


User currently offlineAeroWesty From United States of America, joined Oct 2004, 20322 posts, RR: 63
Reply 6, posted (3 years 2 days 19 hours ago) and read 5357 times:

Quoting hatbutton (Reply 5):
Huh? AS posted a net profit of $29.5 million.

Not to disparage AS, but they're a regional airline without exposure to the dire weather problems that affected nationwide network carriers in Q1.



International Homo of Mystery
User currently offlinehatbutton From United States of America, joined Mar 2005, 1477 posts, RR: 14
Reply 7, posted (3 years 2 days 19 hours ago) and read 5314 times:
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Quoting AeroWesty (Reply 6):
Not to disparage AS, but they're a regional airline without exposure to the dire weather problems that affected nationwide network carriers in Q1.

That's understandable...but I'm just pointing out the fact that WN did not lead the way no matter what happened. AS struggled in Mexico when swine flu hit, and struggled when we had a harsh Alaskan winter coupled with a volcanic eruption a couple years ago. But nobody pointed out that WN profits shouldn't be compared to AS back then because it was slightly unfair due to events out of the airline's control. I guess I'd just like to see it go both ways if that's what we're going to attribute a smaller profit to.


User currently offlineAeroWesty From United States of America, joined Oct 2004, 20322 posts, RR: 63
Reply 8, posted (3 years 2 days 19 hours ago) and read 5278 times:

Quoting hatbutton (Reply 7):
but I'm just pointing out the fact that WN did not lead the way no matter what happened.

Point taken, however remember that this is a site dominated by fanboys. You'll find some pointing out the «astounding loyalty», «robustness of the network», «massive pull of the hub», misquoting posters, etc. etc. etc. to benefit the promotion of whichever airline they prefer, regardless of the results. So take whatever slight there may be with a grain of salt.



International Homo of Mystery
User currently offlinechrisair From United States of America, joined Sep 2000, 2001 posts, RR: 3
Reply 9, posted (3 years 2 days 18 hours ago) and read 5238 times:

Quoting hatbutton (Reply 7):
AS struggled in Mexico when swine flu hit, and struggled when we had a harsh Alaskan winter coupled with a volcanic eruption a couple years ago.

A harsh Alaskan winter? Aren't all winters in Alaska "harsh?"  


User currently offlineswa4life From United States of America, joined Jul 2009, 380 posts, RR: 1
Reply 10, posted (3 years 2 days 18 hours ago) and read 5195 times:

I'd say the winter was pretty harsh in the Northeast and Midwest this year as well, and likely affected more flights than a severe winter in Alaska would (mostly remote and few flights). Southwest has so many more opportunities for failure in the high frequency markets they serve. MDW, (Southwest's biggest "hub" city) was completely shut down for 3 days straight, and the Northeast was absolutely hammered resulting in several hundred canceled flights. That being said, this has been a pretty rough winter for WN operations. Scenarios like that really kill the bottom line. You're not only talking about lost revenues, but reaccomodations, compensations, and massive amounts of employee overtime.

User currently offlineWNCrew From United States of America, joined Jun 2006, 1414 posts, RR: 9
Reply 11, posted (3 years 2 days 18 hours ago) and read 5176 times:

I always think it's interesting when HA posts #1 ON-Time performance. It seems, flying mostly where the weather is ideal, that they would stand a better chance at being on-time than most mainland based carriers.


ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
User currently onlinePlanesNTrains From United States of America, joined Feb 2005, 5291 posts, RR: 29
Reply 12, posted (3 years 2 days 18 hours ago) and read 5107 times:

Quoting AeroWesty (Reply 6):
Quoting hatbutton (Reply 5):
Huh? AS posted a net profit of $29.5 million.


Not to disparage AS, but they're a regional airline without exposure to the dire weather problems that affected nationwide network carriers in Q1.

Alaska has done a great job recently with their financials. I would certainly say that they are at least participating in "leading the way".

Nice to see WN perform well this quarter given the weather.

-Dave



Totes my goats!
User currently offlinehatbutton From United States of America, joined Mar 2005, 1477 posts, RR: 14
Reply 13, posted (3 years 2 days 18 hours ago) and read 5084 times:
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Quoting swa4life (Reply 10):
That being said, this has been a pretty rough winter for WN operations. Scenarios like that really kill the bottom line. You're not only talking about lost revenues, but reaccomodations, compensations, and massive amounts of employee overtime.

No doubt. I'm not trying to downplay the difficult winter at all. Posting a profit after all that is impressive. I just start to wonder then if we can ever really compare airline results? Cause there will always be some extraneous event that an airline had no control over and it happens to every carrier at different times.

At some point do we just say, if an airline chooses to operate heavily in one part of a country, they can't always blame the weather that takes place there because this is the model they've chosen? If they don't want these operational disruptions than they should only fly places that don't expose you to this risk. It's a business decision to fly in the Northeast and the Midwest, the risks are obvious, and nobody is being subjected to having to fly there against their will. Or is that trying to oversimplify it?


User currently offlinegoblin211 From United States of America, joined Jun 2010, 1209 posts, RR: 0
Reply 14, posted (3 years 2 days 16 hours ago) and read 4729 times:

Looks like WN is doing good. Lots of direct flights to a variety of cities at low fares! you can't beat it! Way to go WN!


From the airport with love
User currently offlineMSPNWA From United States of America, joined Apr 2009, 1832 posts, RR: 2
Reply 15, posted (3 years 2 days 16 hours ago) and read 4713 times:

Quoting hatbutton (Reply 5):
Huh? AS posted a net profit of $29.5 million.

I was saying that in comparison to the legacies. Sorry for the confusion.


User currently offlineabq707 From United States of America, joined Sep 2010, 67 posts, RR: 0
Reply 16, posted (3 years 2 days 15 hours ago) and read 4116 times:

ANY airline showing ANY profit in first qtr. 2011, did something right.


First flight TWA 707 ABQ to BWI 1964
User currently offlineDeltaMD90 From United States of America, joined Apr 2008, 7278 posts, RR: 52
Reply 17, posted (3 years 2 days 14 hours ago) and read 3775 times:

Quoting abq707 (Reply 16):

ANY airline showing ANY profit in first qtr. 2011, did something right.

That's not fair to say. I'm sure UA and DL would have posted profits if the Japan thing didn't happen. WN has no presence in Japan. (And I'm just assuming DL is gonna post a loss, hopefully I won't eat my words.)



Ironically I have never flown a Delta MD-90 :)
User currently offlinelaxboeingman From United States of America, joined Mar 2008, 532 posts, RR: 0
Reply 18, posted (3 years 2 days 14 hours ago) and read 3758 times:

Good for WN. I am a fan of theirs and it is good to know that they are doing well in tough times, like they say it is good to do one thing right rather than than many things poorly, which WN does the former. They are able to effectively and efficiently take people to wherever they need to go, mainly via short haul, for cheap, which is how they made a profit.


The real American classics: LAX and Boeing.
User currently offlinelightsaber From United States of America, joined Jan 2005, 12444 posts, RR: 100
Reply 19, posted (3 years 2 days 13 hours ago) and read 3661 times:
Support Airliners.net - become a First Class Member!

Quoting abq707 (Reply 16):
ANY airline showing ANY profit in first qtr. 2011, did something right.

I'll accept a small loss too! This was a tough quarter with high oil prices.

Quoting chrisair (Reply 9):
A harsh Alaskan winter? Aren't all winters in Alaska "harsh?"

I thought AS's big money making season was the winter? Tough weather to work in, but also the weather that generates the best revenue. Any which way, the pool of airlines making a profit is small:

WN: $5 million
AS: $74 million per WSJ post #5 's lower number, is that excluding the $84M gain in fuel hedges (note: after taxes, AS would still have been in the black sans fuel hedges per):
http://finance.yahoo.com/news/Spike-...asing-apf-3422064870.html?x=0&.v=8

B6: $3 million

DL: expected to lose money

http://finance.yahoo.com/news/Earnin...Air-zacks-3544881891.html?x=0&.v=1

UA: -$213M
AA: -$436M

Not a good quarter (mostly due to fuel).  

Has anyone done a cash flow analysis on the airlines? Note: I'm not talking just operations. For example, AA's huge debt load (where everything is in hock) cannot be dismissed easily.

Lightsaber



I've posted how many times?!?
User currently offlineabq707 From United States of America, joined Sep 2010, 67 posts, RR: 0
Reply 20, posted (3 years 2 days 12 hours ago) and read 3358 times:

So, based on DeltaMD90's statement, Delta gets a pass because of Japan? Apples/Oranges? I was simply saying that any airline that could show a profit in Q1 of 2011, was doing it right. I wasn't comparing one airline against another, based on their challenges, global exposure to catasrophies etc. I just meant it as a general statement. Comparing DL to WN challenges ie: earthquakes, etc., is not what I meant.


First flight TWA 707 ABQ to BWI 1964
User currently offlineAlasizon From United States of America, joined Apr 2007, 289 posts, RR: 0
Reply 21, posted (3 years 2 days 12 hours ago) and read 3190 times:

Quoting abq707 (Reply 20):
Comparing DL to WN challenges ie: earthquakes, etc., is not what I meant.

DL has a smaller amount of flights overall (while larger aircraft and more customers per aircraft) in Japan/Asia than WN does in the Northeast.

Overall, I would reckon to say that in the 20 days after the earthquake (the ones in the first quarter), less customers were inconvenienced than during the winter (especially the 3 days of MDW closure, which is roughly 500 flights per day, departing and arriving combined). I'm not saying DL won't be effected but I believe than WN had it a bit harder between all the combined station issues: CLE, MDW, CMH, BOS, PHL, PIT, ISP, BUF, PVD, MHT, ALB, BWI, BDL, MKE, MSP, ORF, IAD (and EWR if the flights were already running, I don't recall when they started). I would wager a guess that between all the ops in these cities that overall it was about 25% of WN's total ops effected at one point or another. (Not to mention all the delays that snowballed over as aircraft routing changes had to occur)



Window seats may be over-rated, but I'll take a window seat on a DC9 anyday
User currently offlineDeltaMD90 From United States of America, joined Apr 2008, 7278 posts, RR: 52
Reply 22, posted (3 years 2 days 12 hours ago) and read 3160 times:

Quoting abq707 (Reply 20):
I was simply saying that any airline that could show a profit in Q1 of 2011, was doing it right.

I mean I guess, I just assumed there was more to the statement. Any business turning a profit is "doing something right," but if that's only what you meant, then ok. Just think it's kinda obvious. I assumed you were comparing other airlines.

And as far as UA and DL getting a free pass, I wouldn't call it that, but when you have to explain to your investors why you didn't turn a profit, a 9.0 earthquake is a pretty good and believable excuse, don't you think?



Ironically I have never flown a Delta MD-90 :)
User currently offlineitsasmallworld From United States of America, joined Mar 2008, 23 posts, RR: 0
Reply 23, posted (3 years 2 days 12 hours ago) and read 3126 times:

Quoting lightsaber (Reply 19):
I thought AS's big money making season was the winter? Tough weather to work in, but also the weather that generates the best revenue. Any which way, the pool of airlines making a profit is small:

Quite the opposite actually. Alaska's cash cow is the state of Alaska. And people want to go there in the Summer. Not in the dead of the winter. Over the year's Alaska has gradually been able to somewhat balance this out with Hawaii & Mexico. But it no where near makes up for the revenue generated up north in the Summer.

Quite impressive really. Alaska seems to be consistently outperforming Southwest.


User currently offlineMSPNWA From United States of America, joined Apr 2009, 1832 posts, RR: 2
Reply 24, posted (3 years 2 days 10 hours ago) and read 2836 times:

Quoting DeltaMD90 (Reply 17):
That's not fair to say. I'm sure UA and DL would have posted profits if the Japan thing didn't happen. WN has no presence in Japan. (And I'm just assuming DL is gonna post a loss, hopefully I won't eat my words.)

Honestly I don't believe Delta was going to post a profit before the Japan disaster happened. The horrible winter weather and rising fuel prices were already pointing at a red number. I trend in the articles I read wasn't up. The earthquake only hit a small portion of the quarter, so that has to be kept in mind. Q2 might give us a better revelation of how much it hurt the airlines.


25 wn700driver : You can correct me if I'm wrong, but I'm pretty sure that wasn't always the case for HA. In fact, I recall them ranking at or near dead last for year
26 Lono : Being based in the Anchorage area, I fly AS quite a bit. ANC south to the "lower 48" and interstate Alaska. All the AS flights I was on this winter w
27 N1120A : They are also a regional airline with the ability to spread risk over a wider route structure and have less profit potential.
28 hatbutton : Believing that AS makes all their money in Alaska is a fallacy. Intra-Alaska flying pretty much breaks even because the only cargo being shipped is s
29 Lono : I never said AS makes all their money in Alaska..... I said all their flights were full in and out of Alaska... I also said their yield is greater in
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