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.
hatbutton From United States of America, joined Mar 2005, 1475 posts, RR: 14 Reply 7, posted (2 years 7 months 2 weeks 4 days 19 hours ago) and read 5202 times:
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.
AeroWesty From United States of America, joined Oct 2004, 20322 posts, RR: 64 Reply 8, posted (2 years 7 months 2 weeks 4 days 19 hours ago) and read 5166 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.
swa4life From United States of America, joined Jul 2009, 375 posts, RR: 1 Reply 10, posted (2 years 7 months 2 weeks 4 days 18 hours ago) and read 5083 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.
WNCrew From United States of America, joined Jun 2006, 1369 posts, RR: 9 Reply 11, posted (2 years 7 months 2 weeks 4 days 18 hours ago) and read 5064 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.
hatbutton From United States of America, joined Mar 2005, 1475 posts, RR: 14 Reply 13, posted (2 years 7 months 2 weeks 4 days 18 hours ago) and read 4972 times:
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?
DeltaMD90 From United States of America, joined Apr 2008, 6541 posts, RR: 51 Reply 17, posted (2 years 7 months 2 weeks 4 days 14 hours ago) and read 3663 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.)
laxboeingman From United States of America, joined Mar 2008, 394 posts, RR: 0 Reply 18, posted (2 years 7 months 2 weeks 4 days 14 hours ago) and read 3646 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.
abq707 From United States of America, joined Sep 2010, 67 posts, RR: 0 Reply 20, posted (2 years 7 months 2 weeks 4 days 13 hours ago) and read 3246 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.
Alasizon From United States of America, joined Apr 2007, 289 posts, RR: 0 Reply 21, posted (2 years 7 months 2 weeks 4 days 12 hours ago) and read 3078 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
DeltaMD90 From United States of America, joined Apr 2008, 6541 posts, RR: 51 Reply 22, posted (2 years 7 months 2 weeks 4 days 12 hours ago) and read 3048 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?
itsasmallworld From United States of America, joined Mar 2008, 23 posts, RR: 0 Reply 23, posted (2 years 7 months 2 weeks 4 days 12 hours ago) and read 3014 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.
MSPNWA From United States of America, joined Apr 2009, 1722 posts, RR: 3 Reply 24, posted (2 years 7 months 2 weeks 4 days 11 hours ago) and read 2724 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