Originally Posted by
REF 5
IF, I say IF SWA does $4.00 as share in 2026(which is the low end of the guidance)or even as Jamie Baker put it(not my words)as he did a double upgrade on the stock, he put it at $5.00 to $6.00 a share, "SWA operating margins could be as high as Delta's in 2026". We'll see. Believe it or not its earnings are not based on "premium". Competition is good. RASM for SWA in the first quarter is guided to be up 9.5%. I have not seen that since the last decade for most carriers, let alone SWA. Proof will be in the report cards that they give out every 90 days. I reserve judgment until then.
As far as SEA goes, Delta and even NW were always number two. That hasn't changed in decades and probably won't anytime soon. The market share gap is as wide as a A350 in SEA. The only gap that is bigger is AUS. BOS is a different story. I agree that JBLU has issues. But don't think UAL or AAL will sit idle either. UAL is catching Delta very fast. UAL has a much bigger international footprint than Delta. More widebodies than Delta too. So far now you are top dog on the earnings front.
I get it what you're saying. However, you are not looking forward to the customer base and how it's been shifting over the years if not last decade.
UAL sees it, they are blueprinting us. Both UAL and DAL will begin to syphon that away from you unless you rise to meet them. That's my question - is SWA going to move up to the level or are they just gonna change some airplane seats, do assigned seating and think that's going to do the trick?