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LAXintl
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Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 5:16 pm

Southwest Airlines reported 1Q 2021 operating revenues down 51.5% to $2.1 billion with a net income of US$116 million.(thanks to $1.2 billion offset of salaries, wages, and benefits expenses from the PSP)

Ended 1Q with liquidity of $15.3 billion.

For Q2, April and May forecast traffic down 35-45% compared to 2019, with load factors 75-80% range

https://www.southwestairlinesinvestorre ... -114541457
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ScottB
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 5:58 pm

I saw the earnings release earlier today and I was blown away by the fact that they posted a profit, even if it was entirely due to PSP support from the government. The Big 3 legacies all got PSP money and did not reach profitability. It's even more impressive when one considers Q1 is typically weak for air travel absent a pandemic.

They forecast core cash burn of $2-4 million/day for Q2 which is very manageable (and going positive on this metric in June); it really does look like the business is turning the corner at LUV.

It'll be interesting to see how they balance the huge network expansion over the past year with restoring service in their preexisting markets.
 
cledaybuck
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 6:07 pm

ScottB wrote:
It'll be interesting to see how they balance the huge network expansion over the past year with restoring service in their preexisting markets.

It seems like that will be quite dependent on how business traffic rebounds.
As we celebrate mediocrity, all the boys upstairs want to see, how much you'll pay for what you used to get for free.
 
mwmav8r01
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 6:15 pm

cledaybuck wrote:
ScottB wrote:
It'll be interesting to see how they balance the huge network expansion over the past year with restoring service in their preexisting markets.

It seems like that will be quite dependent on how business traffic rebounds.


A1-15 is starting to get back to normal. Lots more suits and logoed polos on the planes. I honestly think the biggest issue now, is the return of frequency and point to point routes.
 
F9Animal
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 6:58 pm

That is awesome news! Obviously WN has done things right, and it goes without saying that the employees of WN deserve a pat on the back.

I do think alot of these airlines have been through enough tough times to have a plan to weather something like this. For example, 9/11.

I do hope the airlines will be better prepared in the future for another nasty downturn. Good job Southwest!
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ABEguy
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 7:06 pm

ScottB wrote:
I saw the earnings release earlier today and I was blown away by the fact that they posted a profit, even if it was entirely due to PSP support from the government. The Big 3 legacies all got PSP money and did not reach profitability. It's even more impressive when one considers Q1 is typically weak for air travel absent a pandemic.

They forecast core cash burn of $2-4 million/day for Q2 which is very manageable (and going positive on this metric in June); it really does look like the business is turning the corner at LUV.

It'll be interesting to see how they balance the huge network expansion over the past year with restoring service in their preexisting markets.


This is great news. But don’t be so shocked that the big 3 aren’t back to profitability yet. How many 777s does SWA have sitting around unable to fly their intended mission due to lockdowns in SA, Europe, and
Asia? The domestic carriers will no doubt be the ones leading a return to profits. Carriers with international long haul networks are still being held back by government restrictions abroad.
 
A388
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 7:24 pm

I'm not sure if this indeed is entirely the case, but posting a profit because an airline got government support, to me isn't a profit. If that is the case, the term profit is misleading. Can it also be that WN posted this profit because their network is mainly focused on domestic flights while the other Big 3 airlines also have extensive international traffic which of course also went down significantly due to the Covid pandemic?

A388
 
Chemist
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 7:36 pm

WN is more domestic and more leisure, so I would assume that makes it a bit easier for them to do better than the big 3. Also smaller planes gives them more operational flexibility, and lack of highly centralized hubs means more route flexibility - huge numbers of possible departure/destination pairs that can be added or adjusted.
 
ozark1
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 7:46 pm

A388 wrote:
I'm not sure if this indeed is entirely the case, but posting a profit because an airline got government support, to me isn't a profit. If that is the case, the term profit is misleading. Can it also be that WN posted this profit because their network is mainly focused on domestic flights while the other Big 3 airlines also have extensive international traffic which of course also went down significantly due to the Covid pandemic?

A388

I agree. There's something fishy going on here. It seems like a deceptive spin.
 
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Polot
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 7:50 pm

ozark1 wrote:
A388 wrote:
I'm not sure if this indeed is entirely the case, but posting a profit because an airline got government support, to me isn't a profit. If that is the case, the term profit is misleading. Can it also be that WN posted this profit because their network is mainly focused on domestic flights while the other Big 3 airlines also have extensive international traffic which of course also went down significantly due to the Covid pandemic?

A388

I agree. There's something fishy going on here. It seems like a deceptive spin.

I mean it’s not fishy/deceptive- WN made a profit. Yes it includes the government support but remember the losses posted by others also include the benefit of the government support, without it their losses would have been much higher.

Now it’s important to recognize why Southwest made a profit and other carriers did not, and keep that in mind when analayzing the health and future of the airlines.
 
micstatic
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 8:16 pm

Chemist wrote:
WN is more domestic and more leisure, so I would assume that makes it a bit easier for them to do better than the big 3. Also smaller planes gives them more operational flexibility, and lack of highly centralized hubs means more route flexibility - huge numbers of possible departure/destination pairs that can be added or adjusted.


not that business travel is back in full force. But southwest has more than their fair share of business travelers these days
 
ScottB
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 8:24 pm

ABEguy wrote:
This is great news. But don’t be so shocked that the big 3 aren’t back to profitability yet. How many 777s does SWA have sitting around unable to fly their intended mission due to lockdowns in SA, Europe, and
Asia? The domestic carriers will no doubt be the ones leading a return to profits. Carriers with international long haul networks are still being held back by government restrictions abroad.


That's part of it, but you also vastly overestimate aircraft ownership costs & rent. AAL's total expenditure for aircraft rent and depreciation & amortization (which also includes some facilities costs and non-aircraft-equipment) in the quarter was $829 million -- and a big chunk of that will be connected to the narrowbody & regional fleets. They still had an operating loss of $1.3 billion against LUV's operating income of $199 million.

WN blew AA away on CASM. AA's CASM, even including the government support, was 14.09 cents. WN's was 8.00 cents. Excluding the PSP payment and other special items, WN's CASM of 14.34 cents was only a little bit higher than AA's with the support.

I will add that Southwest's profit probably makes it more politically difficult for additional airline bailouts to happen in the U.S.
 
FlyPNS1
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 8:29 pm

Polot wrote:
ozark1 wrote:
A388 wrote:
I'm not sure if this indeed is entirely the case, but posting a profit because an airline got government support, to me isn't a profit. If that is the case, the term profit is misleading. Can it also be that WN posted this profit because their network is mainly focused on domestic flights while the other Big 3 airlines also have extensive international traffic which of course also went down significantly due to the Covid pandemic?

A388

I agree. There's something fishy going on here. It seems like a deceptive spin.

I mean it’s not fishy/deceptive- WN made a profit. Yes it includes the government support but remember the losses posted by others also include the benefit of the government support, without it their losses would have been much higher.

Now it’s important to recognize why Southwest made a profit and other carriers did not, and keep that in mind when analayzing the health and future of the airlines.


But it's no secret that WN was not as severely impacted by COVID as the legacy carriers given that WN has minimal international presence (comparatively) and WN has always relied more heavily on leisure traffic than business traffic compared to the Big 3. That's not to say that WN doesn't have business traffic, clearly they do. If WN wasn't outperforming the legacies right now, something would be severely wrong with them.

That said, it does seem that WN's aggressive move to add new stations isn't hurting them and might even be helping them given these results.
 
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TVNWZ
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 8:30 pm

Let’s congratulate the US Treasury for writing big checks.
 
Italianflyer
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 8:45 pm

I'm a contrarian about the business traffic thing. Now..... Will it snap back to 2019 levels immediately....no. Anecdotally, I have plenty of professional friends in the engineering/medical/sales /finance spaces that have said that lack of face-to-face collaboration has led to some expensive mistakes.
Of course technology will take a bite of business traffic and it will be down by a certain percentage. There are certain fields where face-to-face interaction and collaboration are important for the success of a project.
 
ABEguy
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 9:22 pm

ScottB wrote:
ABEguy wrote:
This is great news. But don’t be so shocked that the big 3 aren’t back to profitability yet. How many 777s does SWA have sitting around unable to fly their intended mission due to lockdowns in SA, Europe, and
Asia? The domestic carriers will no doubt be the ones leading a return to profits. Carriers with international long haul networks are still being held back by government restrictions abroad.


That's part of it, but you also vastly overestimate aircraft ownership costs & rent. AAL's total expenditure for aircraft rent and depreciation & amortization (which also includes some facilities costs and non-aircraft-equipment) in the quarter was $829 million -- and a big chunk of that will be connected to the narrowbody & regional fleets. They still had an operating loss of $1.3 billion against LUV's operating income of $199 million.

WN blew AA away on CASM. AA's CASM, even including the government support, was 14.09 cents. WN's was 8.00 cents. Excluding the PSP payment and other special items, WN's CASM of 14.34 cents was only a little bit higher than AA's with the support.

I will add that Southwest's profit probably makes it more politically difficult for additional airline bailouts to happen in the U.S.


Well yes it certainly cost more to run an airline the size of AA who’s recently re-fleeted vs SWA. No debate there. AA isn’t built around operating a mostly leisure domestic network. All 3 majors are in fact being artificially suppressed currently by lockdowns and quarantines severely affecting their bottom line with long haul travel. AA needs a lot more revenue than there currently is available. Just look back at 2019 revenue. SWA Q1= 5.15B. AA Q1= 9.7B. Apples and oranges. Simply put, SWA is much closer to a normal operating environment than the big 3. All domestic carriers are. Anyways glad to see a profit returning to the industry. Let’s hope everyone follows soon
 
WidebodyPTV
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 9:37 pm

ABEguy wrote:
ScottB wrote:
ABEguy wrote:
This is great news. But don’t be so shocked that the big 3 aren’t back to profitability yet. How many 777s does SWA have sitting around unable to fly their intended mission due to lockdowns in SA, Europe, and
Asia? The domestic carriers will no doubt be the ones leading a return to profits. Carriers with international long haul networks are still being held back by government restrictions abroad.


That's part of it, but you also vastly overestimate aircraft ownership costs & rent. AAL's total expenditure for aircraft rent and depreciation & amortization (which also includes some facilities costs and non-aircraft-equipment) in the quarter was $829 million -- and a big chunk of that will be connected to the narrowbody & regional fleets. They still had an operating loss of $1.3 billion against LUV's operating income of $199 million.

WN blew AA away on CASM. AA's CASM, even including the government support, was 14.09 cents. WN's was 8.00 cents. Excluding the PSP payment and other special items, WN's CASM of 14.34 cents was only a little bit higher than AA's with the support.

I will add that Southwest's profit probably makes it more politically difficult for additional airline bailouts to happen in the U.S.


Well yes it certainly cost more to run an airline the size of AA who’s recently re-fleeted vs SWA. No debate there. AA isn’t built around operating a mostly leisure domestic network. All 3 majors are in fact being artificially suppressed currently by lockdowns and quarantines severely affecting their bottom line with long haul travel. AA needs a lot more revenue than there currently is available. Just look back at 2019 revenue. SWA Q1= 5.15B. AA Q1= 9.7B. Apples and oranges. Simply put, SWA is much closer to a normal operating environment than the big 3. All domestic carriers are. Anyways glad to see a profit returning to the industry. Let’s hope everyone follows soon


Lots of assumptions there.

- The majority of WN’s revenues pre-COVID were from business travelers — it’d be interesting to compare WN to the US3; I suspect the differences won’t be much.

- The primary reason for WN’s success is its aggressive cost cutting... including shrinking its network, as it recognized the reality that traffic may not return to pre-COVID levels for years.

- Traffic is being artificially suppressed? People stopped flying well before the lock downs. Reality is, if it wasn’t for CARES, there would’ve only been a fraction of capacity that there was, and those $59 coast-to-coast fares wouldn’t have existed. If anything, the government cash injection artificially increased traffic.
 
ABEguy
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 9:54 pm

WidebodyPTV wrote:
ABEguy wrote:
ScottB wrote:

That's part of it, but you also vastly overestimate aircraft ownership costs & rent. AAL's total expenditure for aircraft rent and depreciation & amortization (which also includes some facilities costs and non-aircraft-equipment) in the quarter was $829 million -- and a big chunk of that will be connected to the narrowbody & regional fleets. They still had an operating loss of $1.3 billion against LUV's operating income of $199 million.

WN blew AA away on CASM. AA's CASM, even including the government support, was 14.09 cents. WN's was 8.00 cents. Excluding the PSP payment and other special items, WN's CASM of 14.34 cents was only a little bit higher than AA's with the support.

I will add that Southwest's profit probably makes it more politically difficult for additional airline bailouts to happen in the U.S.


Well yes it certainly cost more to run an airline the size of AA who’s recently re-fleeted vs SWA. No debate there. AA isn’t built around operating a mostly leisure domestic network. All 3 majors are in fact being artificially suppressed currently by lockdowns and quarantines severely affecting their bottom line with long haul travel. AA needs a lot more revenue than there currently is available. Just look back at 2019 revenue. SWA Q1= 5.15B. AA Q1= 9.7B. Apples and oranges. Simply put, SWA is much closer to a normal operating environment than the big 3. All domestic carriers are. Anyways glad to see a profit returning to the industry. Let’s hope everyone follows soon


Lots of assumptions there.

- The majority of WN’s revenues pre-COVID were from business travelers — it’d be interesting to compare WN to the US3; I suspect the differences won’t be much.

- The primary reason for WN’s success is its aggressive cost cutting... including shrinking its network, as it recognized the reality that traffic may not return to pre-COVID levels for years.

- Traffic is being artificially suppressed? People stopped flying well before the lock downs. Reality is, if it wasn’t for CARES, there would’ve only been a fraction of capacity that there was, and those $59 coast-to-coast fares wouldn’t have existed. If anything, the government cash injection artificially increased traffic.


How is it possible that you have such recent history so wrong. Take a look at the TSA passenger numbers from 2020. As recently as March 7th TSA screened 2.1 million passengers. Trump banned travel from Europe on March 12th and other lockdowns followed. Naturally the TSA numbers fell off the cliff immediately, and are still trying to recover. Yes artificially suppressed. How do I know? Because the second some country like Greece opens up, booking start coming in. When countries go back into lockdowns, bookings fall off. Not rocket science.
 
Bradin
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 10:02 pm

ABEguy wrote:
How many 777s does SWA have sitting around unable to fly their intended mission due to lockdowns in SA, Europe, and Asia?


Tongue in cheek - but when has Southwest Airlines ever flown 777s?
 
737max8
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 10:19 pm

ozark1 wrote:
A388 wrote:
I'm not sure if this indeed is entirely the case, but posting a profit because an airline got government support, to me isn't a profit. If that is the case, the term profit is misleading. Can it also be that WN posted this profit because their network is mainly focused on domestic flights while the other Big 3 airlines also have extensive international traffic which of course also went down significantly due to the Covid pandemic?

A388

I agree. There's something fishy going on here. It seems like a deceptive spin.


How is it fishy or deceptive? All airlines are reporting their profits/losses with and without PSP.
The thoughts and opinions expressed in my comments do not represent that of any airline or affiliate.
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jbs2886
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 10:25 pm

WidebodyPTV wrote:
- The primary reason for WN’s success is its aggressive cost cutting... including shrinking its network, as it recognized the reality that traffic may not return to pre-COVID levels for years.


Honest question here - other than buyouts (which all airlines did, or layoffs/furloughs), what else did WN do? They haven't done large scale fleet retirements like other airlines (comparing AA especially). I think WN in general has a better cost profile that allowed it weather this better than others, not that its made aggressive cost cutting during the pandemic that is more than other airlines. Indeed, most airlines are pretty much shrinking their networks right now.
 
maps4ltd
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Re: Southwest post Q1 2021 - profit!

Thu Apr 22, 2021 10:32 pm

Have NK, B6, AS, G4, and F9 posted Q1 results yet? I want to see if other domestic-focused airlines turned a profit.
Next flights:
Who knows? :/
 
Josh76040
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 12:04 am

That’s not a profit. It’s a ridiculous and deceptive spin. Claiming a profit due to PSP monies is like saying I’m rich because I took a $1,000,000 cash advance.
 
MIflyer12
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 12:27 am

Josh76040 wrote:
That’s not a profit. It’s a ridiculous and deceptive spin. Claiming a profit due to PSP monies is like saying I’m rich because I took a $1,000,000 cash advance.

Well, no. CARES Act PSP money is mostly a grant. You'd be rich if somebody gifted you a $million.

I agree that 'profit is spin. The professional spinners in corporate communications really ought to have more integrity. The profit was a gift.
Last edited by MIflyer12 on Fri Apr 23, 2021 12:29 am, edited 1 time in total.
 
orlandocfi
Posts: 79
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 12:29 am

Josh76040 wrote:
That’s not a profit. It’s a ridiculous and deceptive spin. Claiming a profit due to PSP monies is like saying I’m rich because I took a $1,000,000 cash advance.


Sour grapes? As stated earlier in the thread, all airlines will be reporting their financials including and excluding govt assistance. Either way, WN is performing better than expected and should be congratulated. Let’s hope for some good news from other carriers in the coming days.
 
Vctony
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 12:34 am

Josh76040 wrote:
That’s not a profit. It’s a ridiculous and deceptive spin. Claiming a profit due to PSP monies is like saying I’m rich because I took a $1,000,000 cash advance.


AA posted a loss with PSP monies.

At any rate WN is doing better than AA.
 
airplaneboy
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 12:58 am

737max8 wrote:
ozark1 wrote:
A388 wrote:
I'm not sure if this indeed is entirely the case, but posting a profit because an airline got government support, to me isn't a profit. If that is the case, the term profit is misleading. Can it also be that WN posted this profit because their network is mainly focused on domestic flights while the other Big 3 airlines also have extensive international traffic which of course also went down significantly due to the Covid pandemic?

A388

I agree. There's something fishy going on here. It seems like a deceptive spin.


How is it fishy or deceptive? All airlines are reporting their profits/losses with and without PSP.


Even CEO Gary Kelly said they lost money in his opening remarks of today’s earnings call:

“The first quarter results are notable, first of all, because they are a lot better than what we thought they would be back in January. But even with that improvement, we still lost $1 billion and it was worst than our fourth quarter results due to the weaker seasonality of January and February travel.”
 
737MAX7
Posts: 180
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 1:14 am

737max8 wrote:
ozark1 wrote:
A388 wrote:
I'm not sure if this indeed is entirely the case, but posting a profit because an airline got government support, to me isn't a profit. If that is the case, the term profit is misleading. Can it also be that WN posted this profit because their network is mainly focused on domestic flights while the other Big 3 airlines also have extensive international traffic which of course also went down significantly due to the Covid pandemic?

A388

I agree. There's something fishy going on here. It seems like a deceptive spin.


How is it fishy or deceptive? All airlines are reporting their profits/losses with and without PSP.

It’s fishy because it’s WN and for whatever reason there are a plethora of posters on here that absolutely hate WN.
 
Josh76040
Posts: 32
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 1:45 am

Vctony wrote:
Josh76040 wrote:
That’s not a profit. It’s a ridiculous and deceptive spin. Claiming a profit due to PSP monies is like saying I’m rich because I took a $1,000,000 cash advance.


AA posted a loss with PSP monies.

At any rate WN is doing better than AA.


The $1 Billion loss at WN is NOT a profit. Pure spin, and completely lacking in integrity. This is the sort of spin we usually see from DL.

Considering AA’s exposure as a result of the complete collapse of international traffic, WN has nothing to celebrate about.
 
airplaneboy
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 1:52 am

Josh76040 wrote:
Vctony wrote:
Josh76040 wrote:
That’s not a profit. It’s a ridiculous and deceptive spin. Claiming a profit due to PSP monies is like saying I’m rich because I took a $1,000,000 cash advance.


AA posted a loss with PSP monies.

At any rate WN is doing better than AA.


The $1 Billion loss at WN is NOT a profit. Pure spin, and completely lacking in integrity. This is the sort of spin we usually see from DL.

Considering AA’s exposure as a result of the complete collapse of international traffic, WN has nothing to celebrate about.


There is no spin here. As I mentioned a couple of posts above, this is what their CEO said today in his opening remarks in their earnings call:

“The first quarter results are notable, first of all, because they are a lot better than what we thought they would be back in January. But even with that improvement, we still LOST $1 billion and it was worst than our fourth quarter results due to the weaker seasonality of January and February travel.”

As another poster mentioned earlier, ALL airlines are posting their bottom line WITH and WITHOUT psp. Again, there is no spin on anything.
 
bob75013
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 2:16 am

Josh76040 wrote:
Vctony wrote:
Josh76040 wrote:
That’s not a profit. It’s a ridiculous and deceptive spin. Claiming a profit due to PSP monies is like saying I’m rich because I took a $1,000,000 cash advance.


AA posted a loss with PSP monies.

At any rate WN is doing better than AA.


The $1 Billion loss at WN is NOT a profit. Pure spin, and completely lacking in integrity. This is the sort of spin we usually see from DL.

Considering AA’s exposure as a result of the complete collapse of international traffic, WN has nothing to celebrate about.


All businesses MUST follow the accounting rules. If in following the rules, you made a profit —- well you did. Period
 
jjbiv
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Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 2:21 am

airplaneboy wrote:
Josh76040 wrote:
Vctony wrote:

AA posted a loss with PSP monies.

At any rate WN is doing better than AA.


The $1 Billion loss at WN is NOT a profit. Pure spin, and completely lacking in integrity. This is the sort of spin we usually see from DL.

Considering AA’s exposure as a result of the complete collapse of international traffic, WN has nothing to celebrate about.


There is no spin here. As I mentioned a couple of posts above, this is what their CEO said today in his opening remarks in their earnings call:

“The first quarter results are notable, first of all, because they are a lot better than what we thought they would be back in January. But even with that improvement, we still LOST $1 billion and it was worst than our fourth quarter results due to the weaker seasonality of January and February travel.”

As another poster mentioned earlier, ALL airlines are posting their bottom line WITH and WITHOUT psp. Again, there is no spin on anything.


Companies report many different financial metrics for different purposes. Thus, it's important to understand how each metric is calculated and what it means.The most standard income (profit and loss) metric is net profit or loss. This number is calculated in accordance with GAAP (generally accepted accounting principles) for US-based or listed companies so that it can be compared across companies. Southwest's net income for the quarter was $116 million. What you (and presumably Gary, as he has an accounting background) are referring to is a non-GAAP number called net income/loss, excluding special items, which was a loss of $1.015 billion for Southwest's Q1. As long as everyone understands what each item means and why the standard (GAAP) metric differs from the non-standard non-GAAP metric, I'm not sure what the value is of splitting hairs and arguing whether Southwest indeed turned a profit or not during the quarter. It's clear to everyone they would have not been profitable during the quarter without the federal payroll support dollars.

Reference: https://www.southwestairlinesinvestorre ... -114541457 (particularly the lines labeled "NET INCOME (LOSS)" and "Net loss, excluding special items")
 
Josh76040
Posts: 32
Joined: Thu May 28, 2020 11:02 am

Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 2:26 am

bob75013 wrote:
Josh76040 wrote:
Vctony wrote:

AA posted a loss with PSP monies.

At any rate WN is doing better than AA.


The $1 Billion loss at WN is NOT a profit. Pure spin, and completely lacking in integrity. This is the sort of spin we usually see from DL.

Considering AA’s exposure as a result of the complete collapse of international traffic, WN has nothing to celebrate about.


All businesses MUST follow the accounting rules. If in following the rules, you made a profit —- well you did. Period


Accounting rules don’t apply when PR spin takes over. The financials tell the whole story, but the PR spin often glosses over the truth.
 
Shakinthefat
Posts: 22
Joined: Thu May 07, 2020 6:56 pm

Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 2:31 am

ABEguy wrote:
This is great news. But don’t be so shocked that the big 3 aren’t back to profitability yet. How many 777s does SWA have sitting around unable to fly their intended mission due to lockdowns in SA, Europe, and
Asia? The domestic carriers will no doubt be the ones leading a return to profits. Carriers with international long haul networks are still being held back by government restrictions abroad.


Once those restrictions are lifted the Big 3 will be printing cash. So much pent up desire to travel, seats will be a premium.
 
n9801f
Posts: 303
Joined: Tue Apr 13, 2004 8:29 am

Re: Southwest post Q1 2021 - profit!

Fri Apr 23, 2021 4:54 am

Congratulations to Southwest!

It's a little sad to see all the negative comments here from employees of airlines that also took PSP.

This is an absolutely admirable accomplishment. Even sportsmanlike competitors should respect this.

jbs2886 wrote:
Honest question here - other than buyouts (which all airlines did, or layoffs/furloughs), what else did WN do?

Just honest basics done right. Yes, the great cost base is a huge help. No mystery, spin, intrigue, or excuses.

For 50 years, Southwest has walked the talk and delivered reality, not just perception.

Good pay and no furloughs for employees. Real steak delivered to investors, not just a glossy sales brochure. Simple product done consistently well for customers.

Kudos!

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