Originally Posted by
HSLD
Gary Kelly's remark during the 1st quarter earnings call that "...We are facing a 25-30% increase in costs and we’ve never faced that before..." has the analysts attention.
Southwest has always adapted to the market and there is no reason to think that they won't continue to find ways to stay profitable, it's their legacy after all! My guess is that the stock will stay flat until Southwest performs on the revenue side of the balance sheet instead of the historic cost side.
Amen to that! that there is what the entire industry is watching. if SWA grows on the revenue side...without going to labor for concessions or cutting back on deliveries, in other words like the above said...."stay off the cost side"....then they would have blazened a new trail that the rest of the industry (labor) will point to and say..."see, SWA has done it....",....the only way to do that is to increase ticket prices which SWA has been keeping low and forcing the majors to do so for years. Once they keep raising their prices, the much slimmer and healthier majors will be right there with em to do the same......making it possible for everyone that took concessions, to now make some back......
my eyes are peeled squarely on SWA for the next 2 years......