Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
MIflyer12
Topic Author
Posts: 8230
Joined: Mon Feb 18, 2013 11:58 pm

Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 11:05 am

Pretty good numbers, particularly on ROIC.

http://investors.southwest.com/news-and ... -112936719

DALLAS, Oct. 24, 2019 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) (the "Company") today reported its third quarter 2019 results:

Third quarter record net income and earnings per diluted share of $659 million and $1.23, respectively

Third quarter record operating revenues of $5.6 billion

Operating margin1 of 14.5 percent, and net margin2 of 11.7 percent

Operating cash flow of $1.1 billion; free cash flow3 of $716 million; returned $596 million to Shareholders through share repurchases and dividends

Return on invested capital (ROIC)3 pre-tax of 23.7 percent for the 12 months ended September 30, 2019, or 18.6 percent on an after-tax basisThird quarter federal tax benefit of $31 million, or $.05 per diluted share


This is an assertion that Boeing will surely challenge.

We are engaged in ongoing discussions with The Boeing Company (Boeing) regarding compensation for damages related to the MAX groundings. The operating income reduction from the MAX groundings is estimated to be $435 million for the nine months ended September 30, 2019, and we expect the damages to continue to grow into 2020. We have not reached a settlement with Boeing, and no estimated settlement amounts have been included in our third quarter 2019 results.


If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!
 
AirnerdTX
Posts: 12
Joined: Wed Mar 13, 2019 12:27 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 11:52 am

MIflyer12 wrote:

If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!


Well, they did report $5.6B in revenues for this quarter with just those other 717 planes. Not sure why $15.6B in an entire year is funny.
 
N757ST
Posts: 1031
Joined: Sat Feb 16, 2002 6:00 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 12:06 pm

It seems most airlines are not so rosy looking toward the 4th quarter with flat RASM trends. The 4+ percent increase in casm in the 4th quarter night hammer the stock today, though it looks like some of that is max delays.
 
N757ST
Posts: 1031
Joined: Sat Feb 16, 2002 6:00 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 12:41 pm

AirnerdTX wrote:
MIflyer12 wrote:

If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!


Well, they did report $5.6B in revenues for this quarter with just those other 717 planes. Not sure why $15.6B in an entire year is funny.


They said operating incomes, not revenues.
 
wnflyguy
Posts: 1984
Joined: Thu Feb 10, 2011 7:58 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 12:46 pm

MIflyer12 wrote:
Pretty good numbers, particularly on ROIC.

http://investors.southwest.com/news-and ... -112936719

DALLAS, Oct. 24, 2019 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) (the "Company") today reported its third quarter 2019 results:

Third quarter record net income and earnings per diluted share of $659 million and $1.23, respectively

Third quarter record operating revenues of $5.6 billion

Operating margin1 of 14.5 percent, and net margin2 of 11.7 percent

Operating cash flow of $1.1 billion; free cash flow3 of $716 million; returned $596 million to Shareholders through share repurchases and dividends

Return on invested capital (ROIC)3 pre-tax of 23.7 percent for the 12 months ended September 30, 2019, or 18.6 percent on an after-tax basisThird quarter federal tax benefit of $31 million, or $.05 per diluted share


This is an assertion that Boeing will surely challenge.

We are engaged in ongoing discussions with The Boeing Company (Boeing) regarding compensation for damages related to the MAX groundings. The operating income reduction from the MAX groundings is estimated to be $435 million for the nine months ended September 30, 2019, and we expect the damages to continue to grow into 2020. We have not reached a settlement with Boeing, and no estimated settlement amounts have been included in our third quarter 2019 results.


If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!


No no no haven't your heard WN has a horrible business model,since Herb Has passed and now the Max their on a express train to Chapter 7. Well per the Let's hate WN A.net industry professionals. Hahahahaha.
Good Job WN!

Flyguy
My Wings are clipped just another Retired Airline person. The Ultimate Armchair out of the loop airline industry geek. Aloha Mr Hand!
 
tphuang
Posts: 5299
Joined: Tue Mar 14, 2017 2:04 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 12:50 pm

Given the max situation, it was pretty good quarter. Keep in mind, they cut a lot of longer range under performing routes due to max. Which is part of the reason why rasm and casm ex went up so much. So basically, I don't think their cost control was this bad compared to last year and their revenue generation wasn't this good compared to last year.
 
User avatar
Revelation
Posts: 24565
Joined: Wed Feb 09, 2005 9:37 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 1:01 pm

wnflyguy wrote:
No no no haven't your heard WN has a horrible business model,since Herb Has passed and now the Max their on a express train to Chapter 7.

Yep, and the only way to save the airline is to take in Airbus A220s so WN can fly smaller planes to smaller cities with less wealthy customers while still needing the same number of crew members to operate the planes and needing a whole new set of mechanics, spare parts, training, etc.
Wake up to find out that you are the eyes of the world
The heart has its beaches, its homeland and thoughts of its own
Wake now, discover that you are the song that the morning brings
The heart has its seasons, its evenings and songs of its own
 
WN732
Posts: 807
Joined: Sat Feb 26, 2011 12:49 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 1:14 pm

Revelation wrote:
wnflyguy wrote:
No no no haven't your heard WN has a horrible business model,since Herb Has passed and now the Max their on a express train to Chapter 7.

Yep, and the only way to save the airline is to take in Airbus A220s so WN can fly smaller planes to smaller cities with less wealthy customers while still needing the same number of crew members to operate the planes and needing a whole new set of mechanics, spare parts, training, etc.


Don't forget their impending merger! How could they survive without a hub at JFK?
 
jplatts
Posts: 3671
Joined: Sat Mar 18, 2017 6:42 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 1:34 pm

WN732 wrote:
Don't forget their impending merger! How could they survive without a hub at JFK?


There is a significant amount of passengers connecting to LGA from cities outside of the LGA perimeter on WN and US3 carriers.

Here are the PDEW's to LGA from some beyond-LGA perimeter cities in Q3 2018:
LGA-LAX 271
LGA-SFO 153
LGA-SAT 153
LGA-LAS 125
LGA-ABQ 103
LGA-AUS 98
LGA-SNA 89
LGA-PHX 78
LGA-SMF 70
LGA-SAN 63
LGA-ELP 62
LGA-JAC 51
LGA-BZN 48
LGA-SEA 47
LGA-TUS 46
LGA-PDX 44
LGA-SJC 42
LGA-RNO 33
LGA-ONT 28
LGA-OAK 27
LGA-BUR 16

There was an average of over 1,600 passengers a day connecting to LGA from beyond-perimeter cities in Q3 2018.

In addition to the significant amount of passengers connecting to LGA from beyond-perimeter cities, WN also already offers 1-stop connecting service to LGA from Florida and most of its domestic destinations west of the Mississippi River.
 
VetteDude
Posts: 100
Joined: Mon Nov 30, 2015 4:13 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 1:45 pm

N757ST wrote:
It seems most airlines are not so rosy looking toward the 4th quarter with flat RASM trends. The 4+ percent increase in casm in the 4th quarter night hammer the stock today, though it looks like some of that is max delays.


Up 4.5% and counting. Good day for me!
 
VetteDude
Posts: 100
Joined: Mon Nov 30, 2015 4:13 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 1:46 pm

AirnerdTX wrote:
MIflyer12 wrote:

If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!


Well, they did report $5.6B in revenues for this quarter with just those other 717 planes. Not sure why $15.6B in an entire year is funny.


Math is hard and trying to hate on Southwest is easy!
 
User avatar
trpmb6
Posts: 3018
Joined: Thu Apr 19, 2018 5:45 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 1:51 pm

Good earnings numbers. But that 435$ million is bogus.
 
N757ST
Posts: 1031
Joined: Sat Feb 16, 2002 6:00 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 2:01 pm

VetteDude wrote:
AirnerdTX wrote:
MIflyer12 wrote:

If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!


Well, they did report $5.6B in revenues for this quarter with just those other 717 planes. Not sure why $15.6B in an entire year is funny.


Math is hard and trying to hate on Southwest is easy!


Not at all trying to insult SWA here.

That said, if you’re going to cast shade on somebody, make sure you’re in the right. They said OPERATING INCOME, not REVENUE. Had they said revenue I’d agree with the statement, but there is zero chance that each jet would have provided 12 million in operating profit in 9 months. If that was the case then Southwest would be in track with the rest of the fleet to produce profits near 10 billion dollars year to date. Hell, if that was the case each jet would pay for itself in 2 years time.
 
tomaheath
Posts: 628
Joined: Wed Nov 12, 2014 11:58 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 2:04 pm

wnflyguy wrote:
MIflyer12 wrote:
Pretty good numbers, particularly on ROIC.

http://investors.southwest.com/news-and ... -112936719

DALLAS, Oct. 24, 2019 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) (the "Company") today reported its third quarter 2019 results:

Third quarter record net income and earnings per diluted share of $659 million and $1.23, respectively

Third quarter record operating revenues of $5.6 billion

Operating margin1 of 14.5 percent, and net margin2 of 11.7 percent

Operating cash flow of $1.1 billion; free cash flow3 of $716 million; returned $596 million to Shareholders through share repurchases and dividends

Return on invested capital (ROIC)3 pre-tax of 23.7 percent for the 12 months ended September 30, 2019, or 18.6 percent on an after-tax basisThird quarter federal tax benefit of $31 million, or $.05 per diluted share


This is an assertion that Boeing will surely challenge.

We are engaged in ongoing discussions with The Boeing Company (Boeing) regarding compensation for damages related to the MAX groundings. The operating income reduction from the MAX groundings is estimated to be $435 million for the nine months ended September 30, 2019, and we expect the damages to continue to grow into 2020. We have not reached a settlement with Boeing, and no estimated settlement amounts have been included in our third quarter 2019 results.


If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!


No no no haven't your heard WN has a horrible business model,since Herb Has passed and now the Max their on a express train to Chapter 7. Well per the Let's hate WN A.net industry professionals. Hahahahaha.
Good Job WN!

Flyguy

Haha. Agree with you 100%. Great job Southwest!
 
VetteDude
Posts: 100
Joined: Mon Nov 30, 2015 4:13 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 2:08 pm

N757ST wrote:
VetteDude wrote:
AirnerdTX wrote:

Well, they did report $5.6B in revenues for this quarter with just those other 717 planes. Not sure why $15.6B in an entire year is funny.


Math is hard and trying to hate on Southwest is easy!


Not at all trying to insult SWA here.

That said, if you’re going to cast shade on somebody, make sure you’re in the right. They said OPERATING INCOME, not REVENUE. Had they said revenue I’d agree with the statement, but there is zero chance that each jet would have provided 12 million in operating profit in 9 months. If that was the case then Southwest would be in track with the rest of the fleet to produce profits near 10 billion dollars year to date. Hell, if that was the case each jet would pay for itself in 2 years time.


You are oversimplifying. Southwest is talking about the marginal operating income, so you can't extrapolate what they are saying across the entire fleet. An airline has very high fixed costs, and abruptly reducing the fleet and number of flights (in Southwest's case by quite a bit, because they have a large MAX fleet) means those fixed costs have to be spread across fewer flights. Since we are talking about the marginal change, if the MAX was flying it would be a nice improvement to their operating income because essentially the gross profit from all the MAX flights would go straight to operating income.

I can say with 100% certainty that the number is spot on. These press releases get audited (for the 10-K) or reviewed (for the 10-Qs) just like the rest of the financial statements. Every number is tied out to support and double/triple/quadruple checked by multiple people. And if they lie about it everyone involved can get in some big trouble.
 
Whiteguy
Posts: 1548
Joined: Sat Nov 29, 2003 6:11 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 2:13 pm

AirnerdTX wrote:
MIflyer12 wrote:

If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!


Well, they did report $5.6B in revenues for this quarter with just those other 717 planes. Not sure why $15.6B in an entire year is funny.


Plus, shouldn’t they have had almost 70 operating in the fleet by now....
 
weezydrvr
Posts: 11
Joined: Thu May 10, 2018 5:43 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 2:19 pm

VetteDude wrote:
N757ST wrote:
VetteDude wrote:

Math is hard and trying to hate on Southwest is easy!


Not at all trying to insult SWA here.

That said, if you’re going to cast shade on somebody, make sure you’re in the right. They said OPERATING INCOME, not REVENUE. Had they said revenue I’d agree with the statement, but there is zero chance that each jet would have provided 12 million in operating profit in 9 months. If that was the case then Southwest would be in track with the rest of the fleet to produce profits near 10 billion dollars year to date. Hell, if that was the case each jet would pay for itself in 2 years time.


You are oversimplifying. Southwest is talking about the marginal operating income, so you can't extrapolate what they are saying across the entire fleet. An airline has very high fixed costs, and abruptly reducing the fleet and number of flights (in Southwest's case by quite a bit, because they have a large MAX fleet) means those fixed costs have to be spread across fewer flights. Since we are talking about the marginal change, if the MAX was flying it would be a nice improvement to their operating income because essentially the gross profit from all the MAX flights would go straight to operating income.

I can say with 100% certainty that the number is spot on. These press releases get audited (for the 10-K) or reviewed (for the 10-Qs) just like the rest of the financial statements. Every number is tied out to support and double/triple/quadruple checked by multiple people. And if they lie about it everyone involved can get in some big trouble.


And add to that the fact that the op based his ‘analysis’ on the 34 Max’s that were on property in March when they were grounded ... forget the fact that nearly double that number were supposed to by flying with WN by now!
 
VetteDude
Posts: 100
Joined: Mon Nov 30, 2015 4:13 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 2:25 pm

weezydrvr wrote:
VetteDude wrote:
N757ST wrote:

Not at all trying to insult SWA here.

That said, if you’re going to cast shade on somebody, make sure you’re in the right. They said OPERATING INCOME, not REVENUE. Had they said revenue I’d agree with the statement, but there is zero chance that each jet would have provided 12 million in operating profit in 9 months. If that was the case then Southwest would be in track with the rest of the fleet to produce profits near 10 billion dollars year to date. Hell, if that was the case each jet would pay for itself in 2 years time.


You are oversimplifying. Southwest is talking about the marginal operating income, so you can't extrapolate what they are saying across the entire fleet. An airline has very high fixed costs, and abruptly reducing the fleet and number of flights (in Southwest's case by quite a bit, because they have a large MAX fleet) means those fixed costs have to be spread across fewer flights. Since we are talking about the marginal change, if the MAX was flying it would be a nice improvement to their operating income because essentially the gross profit from all the MAX flights would go straight to operating income.

I can say with 100% certainty that the number is spot on. These press releases get audited (for the 10-K) or reviewed (for the 10-Qs) just like the rest of the financial statements. Every number is tied out to support and double/triple/quadruple checked by multiple people. And if they lie about it everyone involved can get in some big trouble.


And add to that the fact that the op based his ‘analysis’ on the 34 Max’s that were on property in March when they were grounded ... forget the fact that nearly double that number were supposed to by flying with WN by now!


Exactly. If you don't work in business or finance you tend to think business is just like politics when in reality they are the complete opposites. Some Junior Financial Analyst in Dallas calculated that number, his work was recalculated by a Senior Analyst, it was sent to the PR team to incorporate into the press release, then some higher up in the finance department tied out all the numbers in the release and sent it to the auditors to again tie it out. Gary Kelly didn't just make up the number, stuck it in the press release, and then shot it out to every media company in the world.
 
AirnerdTX
Posts: 12
Joined: Wed Mar 13, 2019 12:27 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 2:32 pm

N757ST wrote:
AirnerdTX wrote:
MIflyer12 wrote:

If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!


Well, they did report $5.6B in revenues for this quarter with just those other 717 planes. Not sure why $15.6B in an entire year is funny.


They said operating incomes, not revenues.


From the press release in the OP: "Third quarter record operating revenues of $5.6 billion"
 
Sooner787
Posts: 2719
Joined: Thu Jul 18, 2013 1:44 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 2:47 pm

Whiteguy wrote:
AirnerdTX wrote:
MIflyer12 wrote:

If 34 grounded MAX are good for $435 million in income over seven months of grounding, that would imply (ignoring gauge) that the other 717 active aircraft in the WN fleet should be making $15.7 Billion a year. Hah hah!


Well, they did report $5.6B in revenues for this quarter with just those other 717 planes. Not sure why $15.6B in an entire year is funny.


Plus, shouldn’t they have had almost 70 operating in the fleet by now....


Yes.... I think WN has more new build / undelivered Max's now than the original 34 in storage in VCV ..
 
N757ST
Posts: 1031
Joined: Sat Feb 16, 2002 6:00 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 5:49 pm

VetteDude wrote:
weezydrvr wrote:
VetteDude wrote:

You are oversimplifying. Southwest is talking about the marginal operating income, so you can't extrapolate what they are saying across the entire fleet. An airline has very high fixed costs, and abruptly reducing the fleet and number of flights (in Southwest's case by quite a bit, because they have a large MAX fleet) means those fixed costs have to be spread across fewer flights. Since we are talking about the marginal change, if the MAX was flying it would be a nice improvement to their operating income because essentially the gross profit from all the MAX flights would go straight to operating income.

I can say with 100% certainty that the number is spot on. These press releases get audited (for the 10-K) or reviewed (for the 10-Qs) just like the rest of the financial statements. Every number is tied out to support and double/triple/quadruple checked by multiple people. And if they lie about it everyone involved can get in some big trouble.


And add to that the fact that the op based his ‘analysis’ on the 34 Max’s that were on property in March when they were grounded ... forget the fact that nearly double that number were supposed to by flying with WN by now!


Exactly. If you don't work in business or finance you tend to think business is just like politics when in reality they are the complete opposites. Some Junior Financial Analyst in Dallas calculated that number, his work was recalculated by a Senior Analyst, it was sent to the PR team to incorporate into the press release, then some higher up in the finance department tied out all the numbers in the release and sent it to the auditors to again tie it out. Gary Kelly didn't just make up the number, stuck it in the press release, and then shot it out to every media company in the world.



Numbers can certainly be like politics. They can be exploited to generate what the company wants it to. Since it’s extrapolating data of airplanes that would have flown but aren’t I’m sure their forecasted number are inflated. I’m doubting there is a gaap forecasting standard for these jets, and they have every reason to inflate this number to the max (pun intended) to get the most leverage from Boeing when they eventually negotiate penalties.

Note, I’m not saying they are lying in their financial reporting. I’m saying their forecasting of “lost” operating income can certainly be skewed.
 
N757ST
Posts: 1031
Joined: Sat Feb 16, 2002 6:00 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 6:06 pm

AirnerdTX wrote:
N757ST wrote:
AirnerdTX wrote:

Well, they did report $5.6B in revenues for this quarter with just those other 717 planes. Not sure why $15.6B in an entire year is funny.


They said operating incomes, not revenues.


From the press release in the OP: "Third quarter record operating revenues of $5.6 billion"


I was talking about the 35-70 ground Max’s. They quoted 400something opening income shortfall, I think that might be a wee bit optimistic. Listen, good on them for such a good quarter especially considering the max groundings. I just doubt that a 6% fleet increase had the max’s been active would’ve generated a 20% increase in year to date operating income.
 
gokmengs
Posts: 1281
Joined: Wed Mar 09, 2005 2:48 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 8:00 pm

Revelation wrote:
wnflyguy wrote:
No no no haven't your heard WN has a horrible business model,since Herb Has passed and now the Max their on a express train to Chapter 7.

Yep, and the only way to save the airline is to take in Airbus A220s so WN can fly smaller planes to smaller cities with less wealthy customers while still needing the same number of crew members to operate the planes and needing a whole new set of mechanics, spare parts, training, etc.

I don’t think anyone can doubt the marvelous job WN did with its strategy of being a single type carrier, yet noT everyone is a A or B fanatic and we can’t say for a fact that the idea of a second type -be it A220 or E2- won’t open up a huge window of opportunity. It’s something to be discussed and to think about and if any high level exec for WN is that stubborn they are doing their employer a disservice by not considering or projecting about it. Good job as always WN.
Yaşa Mustafa Kemal Paşa Yaşa, Adın Yazılacak Mücevher Taşa
 
User avatar
Midwestindy
Posts: 5345
Joined: Sun Mar 12, 2017 3:56 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 8:59 pm

gokmengs wrote:
Revelation wrote:
wnflyguy wrote:
No no no haven't your heard WN has a horrible business model,since Herb Has passed and now the Max their on a express train to Chapter 7.

Yep, and the only way to save the airline is to take in Airbus A220s so WN can fly smaller planes to smaller cities with less wealthy customers while still needing the same number of crew members to operate the planes and needing a whole new set of mechanics, spare parts, training, etc.

I don’t think anyone can doubt the marvelous job WN did with its strategy of being a single type carrier, yet noT everyone is a A or B fanatic and we can’t say for a fact that the idea of a second type -be it A220 or E2- won’t open up a huge window of opportunity. It’s something to be discussed and to think about and if any high level exec for WN is that stubborn they are doing their employer a disservice by not considering or projecting about it. Good job as always WN.


They said they are considering other aircraft types moving forward in their earnings call
Status for 2019/2020: AAdvantage Platinum, Delta Gold, Southwest A-List
 
2175301
Posts: 1892
Joined: Wed May 16, 2007 11:19 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 9:13 pm

Midwestindy wrote:
gokmengs wrote:
Revelation wrote:
Yep, and the only way to save the airline is to take in Airbus A220s so WN can fly smaller planes to smaller cities with less wealthy customers while still needing the same number of crew members to operate the planes and needing a whole new set of mechanics, spare parts, training, etc.

I don’t think anyone can doubt the marvelous job WN did with its strategy of being a single type carrier, yet noT everyone is a A or B fanatic and we can’t say for a fact that the idea of a second type -be it A220 or E2- won’t open up a huge window of opportunity. It’s something to be discussed and to think about and if any high level exec for WN is that stubborn they are doing their employer a disservice by not considering or projecting about it. Good job as always WN.


They said they are considering other aircraft types moving forward in their earnings call


Is there more potential with a smaller aircraft (A220, etc) or with a larger - longer range aircraft that can do coast to coast non-stop. I think Southwest is large enough now to handle a fleet of larger longer range aircraft between major hub cities. That might make more sense than going smaller... for a 2nd type.

Have a great day,
 
alasizon
Posts: 2602
Joined: Sat Apr 28, 2007 8:57 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 9:54 pm

N757ST wrote:
I was talking about the 35-70 ground Max’s. They quoted 400something opening income shortfall, I think that might be a wee bit optimistic. Listen, good on them for such a good quarter especially considering the max groundings. I just doubt that a 6% fleet increase had the max’s been active would’ve generated a 20% increase in year to date operating income.


$435 million would be a 2% operating income increase for the year, not 20%. Seems pretty reasonable to me and actually a bit on the low-side of lost possible lost income (particularly compared with AA's position of lost income on a slightly smaller fleet).
Airport (noun) - A construction site which airplanes tend to frequent
 
ethernal
Posts: 318
Joined: Mon May 06, 2019 12:09 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 10:08 pm

alasizon wrote:
N757ST wrote:
I was talking about the 35-70 ground Max’s. They quoted 400something opening income shortfall, I think that might be a wee bit optimistic. Listen, good on them for such a good quarter especially considering the max groundings. I just doubt that a 6% fleet increase had the max’s been active would’ve generated a 20% increase in year to date operating income.


$435 million would be a 2% operating income increase for the year, not 20%. Seems pretty reasonable to me and actually a bit on the low-side of lost possible lost income (particularly compared with AA's position of lost income on a slightly smaller fleet).


$435M would be closer to 20% increase for the three quarters to date - unless you're saying that their profit is $21B year-to-date. That would put them in the company of Alphabet/Google, JPMC, and Bank of America.. :)

I agree with the above commentary that $435M is likely an inflated figure. Of course it is a defensible number, but it is a defensible number using the most favorable calculations for Southwest. They are likely ignoring the positive effects of the grounding (e.g., industry-wide PRASM increase due to constrained capacity) may even be using a network-wide PRASM to CASM delta even though that is an aggressive assumption as Southwest almost certainly trimmed more marginal routes first.

The fact that PRASM is up significantly on all carriers despite jet fuel prices being down 15% YoY tells you all you need to know about the forced capacity constraints driving benefits straight to the bottom line.
 
jetmatt777
Posts: 4321
Joined: Sun Jun 26, 2005 2:16 am

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 10:24 pm

I think Southwest is just silently building their case for negotiations with Boeing. They are Boeing's sweetheart customer. Saying they are exploring other fleet types should raise a few hairs on the necks over at Boeing, which will make it easier for Southwest to get closer to the $435 figure. The last thing Boeing should do is fight Southwest too much on the numbers. It's not often you get a customer that will buy your product without even talking to your competition.
 
jplatts
Posts: 3671
Joined: Sat Mar 18, 2017 6:42 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 24, 2019 10:33 pm

WN had said in today's earning calls that its market priorities in 2020 are going to be Hawaii, Denver, Baltimore, and Houston.

Top domestic destinations (by PDEW's) that WN doesn't currently serve nonstop from DEN include DCA, CLT, RIC, PWM, BHM, ROC, LIT, GSP, MAF, and ICT.

Top domestic destinations (by PDEW's out of IAH/HOU) that WN doesn't currently serve nonstop from HOU include SFO, SEA, PHL, DTW, MSP, CLE, PDX, SMF, CVG, BUF, and ORF. WN also currently operates Sunday-only nonstop service to LBB from HOU, and LBB is one of the top destinations (by PDEW's out of IAH/HOU) that doesn't currently have daily nonstop service out of HOU on WN.

Top domestic destinations (by PDEW's out of BWI/DCA/IAD) that WN doesn't currently serve nonstop from BWI include SFO, PDX, OMA, SNA, TUS, PNS, DSM, ELP, RNO, LIT, ONT, TUL, GEG, and BOI.
 
maximairways
Posts: 143
Joined: Mon Jul 07, 2008 1:05 am

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 1:12 am

jplatts wrote:
WN had said in today's earning calls that its market priorities in 2020 are going to be Hawaii, Denver, Baltimore, and Houston.
Top domestic destinations (by PDEW's out of IAH/HOU) that WN doesn't currently serve nonstop from HOU include SFO, SEA, PHL, DTW, MSP, CLE, PDX, SMF, CVG, BUF, and ORF. WN also currently operates Sunday-only nonstop service to LBB from HOU, and LBB is one of the top destinations (by PDEW's out of IAH/HOU) that doesn't currently have daily nonstop service out of HOU on WN.


Of those BUF is the only one without non-stop service on any carrier. Also surprised BDL didn't make that list.
 
User avatar
N776AU
Posts: 1008
Joined: Sun Nov 27, 2005 7:18 am

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 1:19 am

Midwestindy wrote:
They said they are considering other aircraft types moving forward in their earnings call

It’ll be a cold day somewhere when Southwest actually purchases from someone else. Don’t get me wrong. I wish they would.
Image
Their livery looks better on the A320 anyway :stirthepot:
Careful, doors are closing, and will not reopen. Please wait for the next train.
 
N757ST
Posts: 1031
Joined: Sat Feb 16, 2002 6:00 am

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 1:21 am

alasizon wrote:
N757ST wrote:
I was talking about the 35-70 ground Max’s. They quoted 400something opening income shortfall, I think that might be a wee bit optimistic. Listen, good on them for such a good quarter especially considering the max groundings. I just doubt that a 6% fleet increase had the max’s been active would’ve generated a 20% increase in year to date operating income.


$435 million would be a 2% operating income increase for the year, not 20%. Seems pretty reasonable to me and actually a bit on the low-side of lost possible lost income (particularly compared with AA's position of lost income on a slightly smaller fleet).


Considering a year to date operating income of 2.2 billion.... your math is off.
 
tphuang
Posts: 5299
Joined: Tue Mar 14, 2017 2:04 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 1:45 am

jplatts wrote:
WN had said in today's earning calls that its market priorities in 2020 are going to be Hawaii, Denver, Baltimore, and Houston.

Top domestic destinations (by PDEW's) that WN doesn't currently serve nonstop from DEN include DCA, CLT, RIC, PWM, BHM, ROC, LIT, GSP, MAF, and ICT.

Top domestic destinations (by PDEW's out of IAH/HOU) that WN doesn't currently serve nonstop from HOU include SFO, SEA, PHL, DTW, MSP, CLE, PDX, SMF, CVG, BUF, and ORF. WN also currently operates Sunday-only nonstop service to LBB from HOU, and LBB is one of the top destinations (by PDEW's out of IAH/HOU) that doesn't currently have daily nonstop service out of HOU on WN.

Top domestic destinations (by PDEW's out of BWI/DCA/IAD) that WN doesn't currently serve nonstop from BWI include SFO, PDX, OMA, SNA, TUS, PNS, DSM, ELP, RNO, LIT, ONT, TUL, GEG, and BOI.


First two made sense. I thought they are close to maxing out their gate situation at BWI? Does anyone know? I would've expected to see BNA in there.
 
jplatts
Posts: 3671
Joined: Sat Mar 18, 2017 6:42 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 1:58 am

tphuang wrote:
First two made sense. I thought they are close to maxing out their gate situation at BWI? Does anyone know? I would've expected to see BNA in there.


WN is going to be gaining 5 extra gates in Concourse A at BWI after the BWI Concourse A expansion that is currently under construction is complete. WN also currently has daily nonstop service to 17 destinations out of DCA, 16 of which are also currently served nonstop out of BWI in addition to DCA on WN.

WN had also said in today's earnings call that it is still planning on expanding at BNA, even though its primary expansion priorities are Hawaii, DEN, BWI, and HOU.
 
m007j
Posts: 142
Joined: Mon Aug 15, 2016 3:05 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 2:01 am

Midwestindy wrote:
gokmengs wrote:
Revelation wrote:
Yep, and the only way to save the airline is to take in Airbus A220s so WN can fly smaller planes to smaller cities with less wealthy customers while still needing the same number of crew members to operate the planes and needing a whole new set of mechanics, spare parts, training, etc.

I don’t think anyone can doubt the marvelous job WN did with its strategy of being a single type carrier, yet noT everyone is a A or B fanatic and we can’t say for a fact that the idea of a second type -be it A220 or E2- won’t open up a huge window of opportunity. It’s something to be discussed and to think about and if any high level exec for WN is that stubborn they are doing their employer a disservice by not considering or projecting about it. Good job as always WN.


They said they are considering other aircraft types moving forward in their earnings call


they HAVE to say it on an earnings call to keep traders who don't know enough about the industry from panicking. Diversification (or lack thereof) can and will spook traders who have an eye a little too far onto the numbers and a little light on the intuition (referring to an overreliance on technical equity analysis).

tphuang wrote:
First two made sense. I thought they are close to maxing out their gate situation at BWI? Does anyone know? I would've expected to see BNA in there.


BWI is building an extension to the A concourse, which is exclusively WN, which will get them a few more gates.
 
ethernal
Posts: 318
Joined: Mon May 06, 2019 12:09 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 2:21 am

m007j wrote:
Midwestindy wrote:
gokmengs wrote:
I don’t think anyone can doubt the marvelous job WN did with its strategy of being a single type carrier, yet noT everyone is a A or B fanatic and we can’t say for a fact that the idea of a second type -be it A220 or E2- won’t open up a huge window of opportunity. It’s something to be discussed and to think about and if any high level exec for WN is that stubborn they are doing their employer a disservice by not considering or projecting about it. Good job as always WN.


They said they are considering other aircraft types moving forward in their earnings call


they HAVE to say it on an earnings call to keep traders who don't know enough about the industry from panicking. Diversification (or lack thereof) can and will spook traders who have an eye a little too far onto the numbers and a little light on the intuition (referring to an overreliance on technical equity analysis).


Perhaps, although a smart investor would recognize that times are a-changing. Southwest is now a large carrier that is struggling to grow. Admittedly a simple assessment (not looking at fuel prices), but average revenue growth from 2012 to 2019 has been a CAGR of about 4%. Below Delta, and a bit above United/AA (on a merger-adjusted basis). Compare that to 1999 to 2012: an average growth rate with a CAGR above 8% (and keep in mind that captures both 9/11 and the Great Recession in that range).

They are facing a business model disruption: ULCC from below, revitalized (via anti-competitive consolidation) legacies from above. They have a strong existing customer base, but data shows they are not picking up a lot of net new unique travelers (who tend to either slot into ULCC or legacy carriers). Their product is differentiated in the market (the slightly-less-expensive-than-legacies "anti-bare fare") but it is questionable how much the market values this differentiation. Where they used to lead in margins, they are now matching traditional legacies (whose cost structure they increasingly mirror) and falling behind ULCCs.

Southwest is going to have to do some soul searching - and that is completely irrespective of the 737MAX issue. In order to grow, they are going to likely have to adjust their business model. That means either adjusting their fleet strategy (i.e., not only 737s) to open more markets or taking on more of an ULCC profile. They can choose a third path of course - continue to muddle along with slow revenue growth and tightening margins as a mature company - but if they want growth, they are going to have to change how they operate.
 
ericm2031
Posts: 1404
Joined: Tue Jun 19, 2012 8:46 am

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 5:00 am

tphuang wrote:
jplatts wrote:
WN had said in today's earning calls that its market priorities in 2020 are going to be Hawaii, Denver, Baltimore, and Houston.

Top domestic destinations (by PDEW's) that WN doesn't currently serve nonstop from DEN include DCA, CLT, RIC, PWM, BHM, ROC, LIT, GSP, MAF, and ICT.

Top domestic destinations (by PDEW's out of IAH/HOU) that WN doesn't currently serve nonstop from HOU include SFO, SEA, PHL, DTW, MSP, CLE, PDX, SMF, CVG, BUF, and ORF. WN also currently operates Sunday-only nonstop service to LBB from HOU, and LBB is one of the top destinations (by PDEW's out of IAH/HOU) that doesn't currently have daily nonstop service out of HOU on WN.

Top domestic destinations (by PDEW's out of BWI/DCA/IAD) that WN doesn't currently serve nonstop from BWI include SFO, PDX, OMA, SNA, TUS, PNS, DSM, ELP, RNO, LIT, ONT, TUL, GEG, and BOI.


First two made sense. I thought they are close to maxing out their gate situation at BWI? Does anyone know? I would've expected to see BNA in there.


BNA was verbally mentioned. California also mentioned, but probably is linked to Hawaii for the most part, and LAX was mentioned that they want those 9 (net) gates in T1E/T0 but don't have a timeline.
 
KlimaBXsst
Posts: 865
Joined: Wed Jan 23, 2019 4:14 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 5:14 am

I want to say the original Boeing 737-200 Southwest was able to take over the World with, well Texas and the States it touched ...

sat about 112 passengers if I remember correctly. Maybe the MAX crisis will give Southwest ample opportunity to go back to those smaller and mid sized cities and routes with their quick turn multi stop success that was so capitalized on in the past.
Aesthetically the A 340 got it right!
 
jplatts
Posts: 3671
Joined: Sat Mar 18, 2017 6:42 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 11:19 am

ericm2031 wrote:
California also mentioned, but probably is linked to Hawaii for the most part, and LAX was mentioned that they want those 9 (net) gates in T1E/T0 but don't have a timeline.


There are some more domestic nonstop routes such as LAX-CLE, LAX-FLL, LAX-HNL, LAX-OGG, LAX-MCO, and LAX-SEA that could be added by WN out of LAX once additional gates open in Concourse 0 at LAX.
 
MIflyer12
Topic Author
Posts: 8230
Joined: Mon Feb 18, 2013 11:58 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 12:20 pm

KlimaBXsst wrote:
I want to say the original Boeing 737-200 Southwest was able to take over the World with, well Texas and the States it touched ...

sat about 112 passengers if I remember correctly. Maybe the MAX crisis will give Southwest ample opportunity to go back to those smaller and mid sized cities and routes with their quick turn multi stop success that was so capitalized on in the past.


Doubt it - they've moved on. Look at the mass they've built at DEN/BWI/LAS/MDW. Go where the passengers are. Too few people want to fly to Amarillo or Albany. How many new-build -700s did they take after starting to receive -800s and MAX8s? Zero is the correct number, I believe. Bigger gauge, bigger cities, bigger vision.
 
tphuang
Posts: 5299
Joined: Tue Mar 14, 2017 2:04 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 1:49 pm

Keep in mind lax is one of the most underperforming stations in wn network. Probably generating the lowest margin amongst it's large stations. I think there is a limit to how large they would grow lax even if they get the additional gate space.
 
uconn99
Posts: 420
Joined: Mon Feb 01, 2016 11:52 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 7:54 pm

maximairways wrote:
jplatts wrote:
WN had said in today's earning calls that its market priorities in 2020 are going to be Hawaii, Denver, Baltimore, and Houston.
Top domestic destinations (by PDEW's out of IAH/HOU) that WN doesn't currently serve nonstop from HOU include SFO, SEA, PHL, DTW, MSP, CLE, PDX, SMF, CVG, BUF, and ORF. WN also currently operates Sunday-only nonstop service to LBB from HOU, and LBB is one of the top destinations (by PDEW's out of IAH/HOU) that doesn't currently have daily nonstop service out of HOU on WN.


Of those BUF is the only one without non-stop service on any carrier. Also surprised BDL didn't make that list.


It would be nice to see UA get some competition between Hartford and Houston, I believe a BDL-HOU flight would do well. Hoping WN expands BDL a bit more, their numbers have been down lately even with the addition of STL last summer.
 
jplatts
Posts: 3671
Joined: Sat Mar 18, 2017 6:42 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 8:50 pm

ethernal wrote:
They are facing a business model disruption: ULCC from below, revitalized (via anti-competitive consolidation) legacies from above. They have a strong existing customer base, but data shows they are not picking up a lot of net new unique travelers (who tend to either slot into ULCC or legacy carriers). Their product is differentiated in the market (the slightly-less-expensive-than-legacies "anti-bare fare") but it is questionable how much the market values this differentiation. Where they used to lead in margins, they are now matching traditional legacies (whose cost structure they increasingly mirror) and falling behind ULCCs.

Southwest is going to have to do some soul searching - and that is completely irrespective of the 737MAX issue. In order to grow, they are going to likely have to adjust their business model. That means either adjusting their fleet strategy (i.e., not only 737s) to open more markets or taking on more of an ULCC profile. They can choose a third path of course - continue to muddle along with slow revenue growth and tightening margins as a mature company - but if they want growth, they are going to have to change how they operate.


WN still has competitive advantages over ULCC's and US3 carriers since WN's Wanna Get Away fares have fewer restrictions than ULCC carriers or US3 Basic Economy fares.

The main differences between WN's Wanna Get Away fares, ULCC fares, and US3 Basic Economy fares include the following:
  • WN doesn't charge change fees for itinerary changes, even on its Wanna Get Away fares, whereas Basic Economy tickets on US3 carriers do not allow for itinerary changes and ULCC's charge change fees for itinerary changes.
  • WN doesn't charge for the 1st and 2nd checked bags, whereas ULCC's and US3 carriers normally charge for the 1st and 2nd checked bags for travelers traveling on economy class fees.
  • WN does not have assigned seating, whereas ULCC's usually charge fees for seats if you select a seat at booking. US3 carriers also charge seat selection fees if you choose a seat in some cases, including those traveling on Basic Economy fares, those traveling in economy class seats with extra legroom, or those traveling in an preferred seat.

If WN does start to charge fees for itinerary changes, carry-on baggage, or checked baggage, WN will likely lose market share to AA, DL, UA, F9, and NK (and AS, G4, HA, B6, and SY to a lesser extent) on most of the WN nonstop routes that have nonstop competition. WN needs to retain its policies of no change fees, no carry on fees, and no checked bag fees to remain competitive on routes that have nonstop competition on US3 carriers or ULCC's.
Last edited by jplatts on Fri Oct 25, 2019 9:15 pm, edited 1 time in total.
 
philabos
Posts: 45
Joined: Thu Mar 27, 2014 8:24 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 9:13 pm

Absolutely right.
We fly WN exclusively just because of their change policy. With two kids in the military, you can bet there will be at least one change in schedule. With WN, no issue.
We could save $50 or more on a legacy, but with a change they would say thanks for your money, now buy another ticket.
 
ethernal
Posts: 318
Joined: Mon May 06, 2019 12:09 pm

Re: Southwest posts 3Q2019 earnings

Fri Oct 25, 2019 11:24 pm

jplatts wrote:
ethernal wrote:
They are facing a business model disruption: ULCC from below, revitalized (via anti-competitive consolidation) legacies from above. They have a strong existing customer base, but data shows they are not picking up a lot of net new unique travelers (who tend to either slot into ULCC or legacy carriers). Their product is differentiated in the market (the slightly-less-expensive-than-legacies "anti-bare fare") but it is questionable how much the market values this differentiation. Where they used to lead in margins, they are now matching traditional legacies (whose cost structure they increasingly mirror) and falling behind ULCCs.

Southwest is going to have to do some soul searching - and that is completely irrespective of the 737MAX issue. In order to grow, they are going to likely have to adjust their business model. That means either adjusting their fleet strategy (i.e., not only 737s) to open more markets or taking on more of an ULCC profile. They can choose a third path of course - continue to muddle along with slow revenue growth and tightening margins as a mature company - but if they want growth, they are going to have to change how they operate.


WN still has competitive advantages over ULCC's and US3 carriers since WN's Wanna Get Away fares have fewer restrictions than ULCC carriers or US3 Basic Economy fares.

The main differences between WN's Wanna Get Away fares, ULCC fares, and US3 Basic Economy fares include the following:
  • WN doesn't charge change fees for itinerary changes, even on its Wanna Get Away fares, whereas Basic Economy tickets on US3 carriers do not allow for itinerary changes and ULCC's charge change fees for itinerary changes.
  • WN doesn't charge for the 1st and 2nd checked bags, whereas ULCC's and US3 carriers normally charge for the 1st and 2nd checked bags for travelers traveling on economy class fees.
  • WN does not have assigned seating, whereas ULCC's usually charge fees for seats if you select a seat at booking. US3 carriers also charge seat selection fees if you choose a seat in some cases, including those traveling on Basic Economy fares, those traveling in economy class seats with extra legroom, or those traveling in an preferred seat.

If WN does start to charge fees for itinerary changes, carry-on baggage, or checked baggage, WN will likely lose market share to AA, DL, UA, F9, and NK (and AS, G4, HA, B6, and SY to a lesser extent) on most of the WN nonstop routes that have nonstop competition. WN needs to retain its policies of no change fees, no carry on fees, and no checked bag fees to remain competitive on routes that have nonstop competition on US3 carriers or ULCC's.


I'm very familiar with Southwest's fare structure, which is exactly why I said that Southwest's position as an affordable (generally at or below the legacy's pricing) "anti-bare-fare". The "anti-bare fare" was meant to reflect the fact that Southwest has a highly "bundled" (including flexible changes) fare which is unique and differentiated. My point was that this source of differentiation may not continue to be valuable to changing demographics. While Southwest remains a highly ranked airline among all demographics, on a relative basis Millennials score Southwest less highly than other airlines.

Southwest has been highly successful with its bundled fares. I am not saying they should change it. I am saying that the relative advantage it has granted them may not persist. There is a logic to this: for older flyers, there is a loss aversion effect. It was not long ago that checked bags and more flexible faring structures were the norm. A new generation of flyers know nothing but restricted fares - and psychologically loss aversion is far stronger than gains. So for someone that has traditionally had those things, "losing" it is a big cost and a frustration. For someone who has always had to pay checked bag fees (and likely doesn't check bags anyways), the relative "gain" of free checked bags is less. Surveys support this: millennials aren't really that worried about checked bag fees, while older generations care more.

The reality is times are changing. There are a lot of things that reflect this. As perhaps one prototypical example, Southwest is finally going into GDS - something that they have resisted for literal decades.

Southwest is a great, profitable company. They are not going anywhere for a long time. My point is that Southwest needs to examine its business model - whether that is its fleet strategy or its fare strategy - to supercharge its growth in light of changes in the competitive landscape over the past 25 years (both externally - such as the rise of the ULCC - and internally, such as its own growth limiting its expansion options).
 
ctrabs0114
Posts: 1088
Joined: Mon Oct 09, 2017 8:09 am

Re: Southwest posts 3Q2019 earnings

Sat Oct 26, 2019 4:43 am

N776AU wrote:
Their livery looks better on the A320 anyway :stirthepot:


No... they don't. Then again, that's what I'd expect from a B6 fanboy...
2019: DAL, MCI, PHX, LAS, DFW, SAT, ORD, SLC, SEA, DTW, PHL, MIA, LAX; B73G (WN x3), B738 (WN, AA, DL), A20N (NK), MD83 (AA), B788 (AA x2), CS1 (DL), B739 (DL), B712 (DL), B752 (AA), B763 (AA), B77W (AA), B789 (AA)
Next: TBA
 
User avatar
southwest1675
Posts: 1499
Joined: Sun Apr 10, 2016 2:03 am

Re: Southwest posts 3Q2019 earnings

Sat Oct 26, 2019 3:06 pm

Really wonder if BNA will be a 200 flights a day station one day. We were told it was going to be a reliever to a maxed out MDW.
Herb Kelleher 1931-2019
 
jplatts
Posts: 3671
Joined: Sat Mar 18, 2017 6:42 pm

Re: Southwest posts 3Q2019 earnings

Thu Oct 31, 2019 3:40 am

southwest1675 wrote:
Really wonder if BNA will be a 200 flights a day station one day. We were told it was going to be a reliever to a maxed out MDW.


There are some WN stations such as AUS, BUR, DAL, LAX, and SEA where WN operates more flights per gate per day than MDW does.

MDW - 265 daily departures / 31 gates = 8.55 daily departures / gate
DAL - 199 daily departures (195 WN + 4 DL) / 18 gates = 11.06 daily departures / gate
SEA - 37 daily departures / 4 gates = 9.25 daily departures / gate
AUS - 80 daily departures / 8 gates = 10 daily departures / gate
BUR - 69 daily departures / 7 gates = 9.86 daily departures / gate
LAX - 110 daily departures / 9 gates = 12.22 daily departures / gate

WN also is maxed out at the slot-restricted airports that are served by WN such as LGA, DCA, LGB, and SNA.

WN is also going to be increasing frequencies on some nonstop routes out of MDW in 2020, including MDW-ATL, MDW-BWI, MDW-DAL, MDW-DEN, MDW-HOU, and MDW-LGA.

WN will be back up to 245 daily departures at MDW in April 2020, which is 20 fewer daily departures than it was operating out of MDW in Summer 2017.

It appears that WN might be able to expand MDW to at least 310 daily departures (which is 45 additional daily departures beyond the 265 daily departures out of MDW in Summer 2017 on WN) when other stations such as AUS, BUR, DAL, LAX, and SEA can accommodate at least 10 daily departures per gate on WN.

Is there anything unusual at MDW that limits WN at MDW compared to stations such as AUS, BUR, DAL, LAX, or SEA where WN operates more daily departures per gate?

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos