Congratulations to all SWA employees and shareholders!
Net Income: $511 Million
Operating Revenues: Up 9.3%
Return on Invested Capital: 33.4%
Operating Margin: 19.7%
Load Factor: Record 1st Quarter of 80.5%
CASM (ex fuel, special items, and PS): 8.15 cents (DOWN 0.5%)
RASM: 13.68 cents (UP 0.1%)
Classic fleet (737-500's retired September 5, 2016) of 737-300's retired by 3rd Quarter 2017.
Outstanding results!
Imagine the results if they had no hedging in place!
http://finance.yahoo.com/news/southw...eports-record-first-103000230.html
[Edited 2016-04-21 06:00:32]
[Edited 2016-04-21 06:07:16]
[Edited 2016-04-21 06:08:32]
[Edited 2016-04-21 06:08:45]
Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting flyguychi (Thread starter): Imagine the results if they had no hedging in place! |
First quarter 2016 economic fuel costs were $1.78per gallon, including $.56per gallon in unfavorable cash settlements from fuel derivative contracts
Interesting to note: "In January, we announced our intention to retire our'Classic'Boeing 737-300 fleet in 2018. Today, we are announcing the retirement date has been accelerated to 2017 to simplify our operations and resolve uncertainty surrounding Federal Aviation Administration (FAA) pilot training requirements for flying both the Classic and Boeing 737-8 (MAX) aircraft. We have been working with our Pilots' union, Southwest Airlines Pilots' Association (SWAPA), to mitigate this issue through segmenting the Classic flying, but that effort has been unsuccessful. Given the FAA is not expected to complete training requirements until next year, the only solution now is to avoid flying both the Classics and the MAX. Therefore, the Classics will be retired in 2017 prior to the MAX being placed into revenue service. Indeed, this is a viable and manageable solution, although not preferred. This accelerated retirement of the Classics will result in fewer aircraft and lower available seat mile (capacity) growth in 2017 than previously planned.
http://www.swamedia.com/releases/sou...ord-first-quarter-profit-3?l=en-US
My post is my ideas and my opinions only, I do not represent the ideas or opinions of anyone else or company.
RE: Southwest Record 1st Quarter 2016 Profit
Another Good quarter.
[Edited 2016-04-21 06:30:17]
[Edited 2016-04-21 06:30:17]
My posts are my opinion only and do not reflect the views of Southwest Airlines
RE: Southwest Record 1st Quarter 2016 Profit
Interesting title in its ambiguity - I wasn't quite sure how to read 'Southwest Record 1st Quarter 2016 Profit'. Was it that Southwest had recorded a profit in the first quarter of 2016 or was it that Southwest had made a record first quarter profit in 2016?
Little things for little minds...
Little things for little minds...
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting SWADawg (Reply 2): All the NG's have had this mod done, but none of the Classics. That is what is driving this decision and not the pilots. |
| Quoting SWADawg (Reply 2): 2-8 b. One Hundred Percent. One hundred percent of each operator’s fleet must be modified no later than December 26, 2017, unless a one year extension has been granted by using the “Ground Conditioned Air” provision in the FTFR rule. |
Since the original plan was to retired by the end of 2018 with the one year extension using the "Ground Conditioned Air" provision, it appears as though it is due to the pilots. 100%. The original plan was within the time frames of 2-8b.
My post is my ideas and my opinions only, I do not represent the ideas or opinions of anyone else or company.
RE: Southwest Record 1st Quarter 2016 Profit
I may not understand the whole situation, but it is sad to see how unions sometimes drag and block a successful company's growth.
Once again, I do not know what the whole situation is and what the pilots are asking for... just a thought I hope someone can clarify.
Happy almost Friday folks,
avi8
Once again, I do not know what the whole situation is and what the pilots are asking for... just a thought I hope someone can clarify.
Happy almost Friday folks,
avi8
avi8
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- crazytoaster
- Posts: 301
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RE: Southwest Record 1st Quarter 2016 Profit
| Quoting usflyguy (Reply 1): In January, we announced our intention to retire our'Classic'Boeing 737-300 fleet in 2018. Today, we are announcing the retirement date has been accelerated to 2017 |
Ouch, regardless of the reason how is WN going to cover all that missed flying in 2018. The 737-300 fleet is still over 100 strong and I'm pretty sure there current order book would barely cover removing those. This would stop any significant growth plans unless they can procure a lot of used 737-700/800s.
DEN homebase. Frequent traveler to IND and RNO.
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting crazytoaster (Reply 6): |
Taking 71 NEW 737-800's AND 35 used 737-700's in 2016/2017. That should cover a lot of it, but not all....
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- aaexecplat
- Posts: 511
- Joined:
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting avi8 (Reply 5): I may not understand the whole situation, but it is sad to see how unions sometimes drag and block a successful company's growth. Once again, I do not know what the whole situation is and what the pilots are asking for... just a thought I hope someone can clarify. Happy almost Friday folks, avi8 |
I don't think this one is fair to pit on the Unions. That's just poor planning from management...
RE: Southwest Record 1st Quarter 2016 Profit
Hmmm. How do you get a lot of new Airplanes overnight with pilots to fly said Airplanes quickly? What must they be contemplating up in Big D? Give me second, I'm sure it will come to me.
My posts are my opinion only and do not reflect the views of Southwest Airlines
RE: Southwest Record 1st Quarter 2016 Profit
Things that stood out:
Seems like WN is satisfying both employees and shareholders by a near equal mark. For those employees that own stock, that's pretty much a double bonus.
Great results and I am very excited about the early retirement of the Classic fleet. However, it will put a strain on flights and growth next year and I am a bit disappointed on how it seems they were forced into it. Let's see how various employees and groups will turn these positive results into something more to complain about.
| Quote: Next month, we expect to complete the repurchase of the remaining $200 million under our existing $1.5 billion share repurchase authorization. |
| Quote: ...record first quarter profitsharing accrual of $155 million. |
Seems like WN is satisfying both employees and shareholders by a near equal mark. For those employees that own stock, that's pretty much a double bonus.
Great results and I am very excited about the early retirement of the Classic fleet. However, it will put a strain on flights and growth next year and I am a bit disappointed on how it seems they were forced into it. Let's see how various employees and groups will turn these positive results into something more to complain about.
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting SWADawg (Reply 9): Hmmm. How do you get a lot of new Airplanes overnight with pilots to fly said Airplanes quickly? What must they be contemplating up in Big D? Give me second, I'm sure it will come to me. |
There is no way another merger/ acquisition is happening at WN, UA, AA, or DL. Not only would the government not allow it, there is no perfect airline to acquire. AS is now too big to acquire and I don't see B6, G4, F9, or NK happening. The ONLY slim possibility would be SY and their fleet of 20 737. Although I think there would be interest at the GO in this, I just don't see the government allowing it.
RE: Southwest Record 1st Quarter 2016 Profit
Congrats to WN on an outstanding quarter!
Read this:
SWAPA negotiating platform
It's interesting to note how SWAPA refers to WN's ability to generate substantial revenue once their GDS change occurs, even though the company dismisses that.
[Edited 2016-04-21 07:39:04]
| Quoting avi8 (Reply 5): I may not understand the whole situation, but it is sad to see how unions sometimes drag and block a successful company's growth. Once again, I do not know what the whole situation is and what the pilots are asking for... just a thought I hope someone can clarify. |
Read this:
SWAPA negotiating platform
It's interesting to note how SWAPA refers to WN's ability to generate substantial revenue once their GDS change occurs, even though the company dismisses that.
[Edited 2016-04-21 07:39:04]
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
Comments made here are my own and are not intended to represent the official position of Alaska Air Group
Comments made here are my own and are not intended to represent the official position of Alaska Air Group
RE: Southwest Record 1st Quarter 2016 Profit
Not bad for an airline that fly only one type of aircraft. And "old" aircraft at that per Anet.
Interesting that SWA is moving up the Classics retirement to simplify operations, yet the Anet CEOs want them to add a new type of aircraft.
Interesting.
Interesting that SWA is moving up the Classics retirement to simplify operations, yet the Anet CEOs want them to add a new type of aircraft.
Interesting.
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting flyguychi (Thread starter): Imagine the results if they had no hedging in place! |
I used to say that all the time back in the major downturn of last decade.
It's funny that people would get mad then, but now some want to ask that question like a badge of honor now.
| Quoting crazytoaster (Reply 6): and I'm pretty sure there current order book would barely cover removing those. |
WN can and does buy used.
They might be looking at GOL's situation with hungry eyes.
| Quoting Dallas (Reply 11): There is no way another merger/ acquisition is happening at WN, UA, AA, or DL. Not only would the government not allow it |
Based on what? There's nil evidence for any of the above.
Heck, when's the last time that the FAA (i.e. the one who actually makes the decision) didn't allow a mainline merger??
I myself, suspect a more prosaic motive... ~Thranduil
RE: Southwest Record 1st Quarter 2016 Profit
Revenue performance is the clear leader this quarter. Flat RASM is incredible. Too bad they had so much fuel hedged though. That hurt.
It will be sad to see the classics go so soon. Not for the onboard product, mind you, but for the history.
It will be sad to see the classics go so soon. Not for the onboard product, mind you, but for the history.
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- deltal1011man
- Posts: 5400
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RE: Southwest Record 1st Quarter 2016 Profit
| Quoting avi8 (Reply 5): I may not understand the whole situation, but it is sad to see how unions sometimes drag and block a successful company's growth. |
In a world where the government won't allow self-help anymore, don't expect unions to play nice and do favors if you are going to drag getting a contract out by years.
If WN management wants the unions to play nice then they should start practicing what they are preaching.
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting deltal1011man (Reply 16): In a world where the government won't allow self-help anymore, don't expect unions to play nice and do favors if you are going to drag getting a contract out by years. If WN management wants the unions to play nice then they should start practicing what they are preaching. |
How far overdue is the WN pilot contract?
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting deltal1011man (Reply 16): In a world where the government won't allow self-help anymore, don't expect unions to play nice and do favors |
Am I the only one who read this in their head in Don LaFontaine's voice?
Don LaFontaine
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
Comments made here are my own and are not intended to represent the official position of Alaska Air Group
Comments made here are my own and are not intended to represent the official position of Alaska Air Group
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting LAX772LR (Reply 14): Heck, when's the last time that the FAA (i.e. the one who actually makes the decision) didn't allow a mainline merger?? |
The FAA doesn't approve airline mergers: the Department of Justice decides to let one go thru or to sue to stop it. The lead in adminsitrative action on airline mergers has been with the DOJ for more than 25 years.
https://www.justice.gov/atr/department-justice-2
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting LAX772LR (Reply 14): Heck, when's the last time that the FAA (i.e. the one who actually makes the decision) didn't allow a mainline merger?? |
DOT, and I believe 2002, US/UA.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
Comments made here are my own and are not intended to represent the official position of Alaska Air Group
Comments made here are my own and are not intended to represent the official position of Alaska Air Group
RE: Southwest Record 1st Quarter 2016 Profit
SWAPA responds to financial results:
http://myemail.constantcontact.com/L...soid=1102365104649&aid=VEWs8bz7Xzw
http://myemail.constantcontact.com/L...soid=1102365104649&aid=VEWs8bz7Xzw
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting Dallas (Reply 21): SWAPA responds to financial results: http://myemail.constantcontact.com/L...soid=1102365104649&aid=VEWs8bz7Xzw |
Well written letter. SWAPA speaks for me.
My posts are my opinion only and do not reflect the views of Southwest Airlines
RE: Southwest Record 1st Quarter 2016 Profit
Mabrouk! Here's to another profitable quarter, insha'allah... 
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting Dallas (Reply 11): |
I thought airlines were deregulated ...no they aren't .....yes they are....no they aren't ....yes they are.....
What a joke. It only regulated when the gov wants it to be. Yes I am stirring the pot but if it's deregulated, anybody could merge with whoever..... As a pilot for the majors, this is the one of the biggest laughs we have....deregulation...
What a crock..... Routes sometimes are un- regulated and no fixed price. The rest clearly is..
Flame away flamers...
Knives don't kill people. People with knives kill people.
OUTLAW KNIVES.
I am a pilot, therefore I envy no one...
OUTLAW KNIVES.
I am a pilot, therefore I envy no one...
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lightsaber
Moderator
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RE: Southwest Record 1st Quarter 2016 Profit
| Quoting flyguychi (Thread starter): Return on Invested Capital: 33.4% |
Well done WN!
That is over a dozen 738 that could be cash bought in a quarter!
| Quoting usflyguy (Reply 1): In January, we announced our intention to retire our'Classic'Boeing 737-300 fleet in 2018. Today, we are announcing the retirement date has been accelerated to 2017 to simplify our operations and resolve uncertainty surrounding Federal Aviation Administration (FAA) pilot training requirements for flying both the Classic and Boeing 737-8 (MAX) aircraft. We have been working with our Pilots' union, Southwest Airlines Pilots' Association (SWAPA), to mitigate this issue through segmenting the Classic flying, but that effort has been unsuccessful. Given the FAA is not expected to complete training requirements until next year, the only solution now is to avoid flying both the Classics and the MAX |
Wow... A throwdown. WN will aim for ROI and other metrics. Management figured this was the better option.
| Quoting crazytoaster (Reply 6): The 737-300 fleet is still over 100 strong |
It will be a fast ramp down. I wonder if WN found more used 73G or 738 at an OK price? Or perhaps Boeing will have a few ZNG slots?
Pilot contract contingent.
| Quoting flyguychi (Reply 7): Taking 71 NEW 737-800's AND 35 used 737-700's in 2016/2017. That should cover a lot of it, but not all.... |
Thanks for the numbers.
| Quoting SWADawg (Reply 9): I don't think this one is fair to pit on the Unions. T |
Why not? If too much is asked, then so be it. WN now is high cost. Airlines still have low profits versus most industries. The survivors will outgrow the competition.
Lightsaber
4 months without TV. The best decision of my life.
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- Chaostheory
- Posts: 1170
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RE: Southwest Record 1st Quarter 2016 Profit
| Quoting bgm (Reply 23): Mabrouk! Here's to another profitable quarter, insha'allah... |
Good one. Apt and very witty.
| Quoting lightsaber (Reply 25): Well done WN! |
Ameen
Sorry. Amen.
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting MIflyer12 (Reply 19): The FAA doesn't approve airline mergers: the Department of Justice decides to let one go thru or to sue to stop it |
You have it backwards. The FAA (or more accurately, the DOT) approves mergers, and how the DOJ feels is mechanically irrelevant to that decision.
All the DOJ can do is (threaten to) sue, if it disagrees with an approved merger. There's no guarantee that the courts will side with it, at which point the DOJ is essentially impotent to do anything further.
But it rarely comes to that, as generally the parties either call off the merger in the face of a DOJ objection, or they enact carve-outs that quell the DOJ's concerns.
But this is irrelevant to my question, which was when was the last time the FAA/DOT didn't allow a merger.
I myself, suspect a more prosaic motive... ~Thranduil
RE: Southwest Record 1st Quarter 2016 Profit
| Quoting EA CO AS (Reply 20): DOT, and I believe 2002, US/UA. |
Nope.
That was called off after the DOJ threatened to sue, even after the proposal to spin off "DC Air" via Bob Johnson.
I myself, suspect a more prosaic motive... ~Thranduil
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- dennypayne
- Posts: 349
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RE: Southwest Record 1st Quarter 2016 Profit
| Quoting Dallas (Reply 10): Let's see how various employees and groups will turn these positive results into something more to complain about |
I know a SWA mechanic - they apparently have had no raises in 4 years. Doesn't sound like too much to ask that if the company is posting record profits, that the employees who have made it happen should get some reward for that. Yet there seems to be no movement in that direction. I'd complain too.
A300/310/319/320/321/332/333/343/380 AN24/28/38/148 ARJ AT6/7 B190
B717/722/732/3/4/5/7/8/9 741/744/752/753/762/763/764/772/773/788/789
CR1/2/7/9 D8S D93/4/5 DHC2/3/7/8 D28/38 EMB/EM2/ER3/D/4/E70/75/90
F50/100 J31 L10 L4T M11/80/87/90 SF3 SU9 TU3/TU5 YK2
B717/722/732/3/4/5/7/8/9 741/744/752/753/762/763/764/772/773/788/789
CR1/2/7/9 D8S D93/4/5 DHC2/3/7/8 D28/38 EMB/EM2/ER3/D/4/E70/75/90
F50/100 J31 L10 L4T M11/80/87/90 SF3 SU9 TU3/TU5 YK2
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