Did you hear 40+ 717s for "substantially" less than $10M each?


Let's get more.

 

How is "Profit Sharing" considered a "Cost Increase"??

Any profit sharing is accounted for AFTER costs/expenses are subtracted from income, yes? I mean, first you must show a Profit, which comes AFTER costs, but he's saying profit sharing is a "Cost", which it is not, just like Dividends, only it's going to the people who actually -generated- the profit in the first place.

 

Was he asking about our C2015?



SEA: Grow again? Or capacity discipline?

 

Yes, and did you LOVE Richard's answer?

"If you look over our track record over the last 8 years, we've always led the industry... (in getting pilots to trade their retirement, pay, benefits, and profit sharing for 3% raises)."

He then goes on to brag about making all this money with '3 less shells' (airframes).

How's that for growth!

 

Listening to the earnings conference call.

717 taking 42 deliveries in 2014. Total cost of these planes will be less than 10 million per copy and expect them to be in the fleet for 12-20 more years. No upfront capital used to acquire these ac.. thanks Southwest!

The 737 900er are cash flow positive from day 1. I assume this means we are paying cash as they are delivered?

For those with a pension, fully funded 2014 requirements in the first quarter. In addition contributed an additional 250 million above those 2014 requirements.

NYC. Rasm increases double digit increase in April. Expect nice profit from the NYC this year.

SEA nice gains in this market.

45% of first class seats being sold a 5% increase

retiring 70 50 seat rjs this year.
added 24 mainline ac retired 15 so far this year
9.1 billion net dept.
interest expense savings of 100 million for 2014.
7 billion in net debt in 2015 ahead of schedule.

Q&A
pilot question from JP Morgan
question pertaining to pilots wants in the next contract. Richard says he is not concerned as we have good working relationship with the pilot's. Certainly jumped around the question.

This quarter 7 fewer airframes in The fleet. Not sure if they are mainline only or if this includes Rj's as well.

SEA
All domestic routes were profitable in the month march. Expect to be SEA largest Carrier by revenue in the third quarter of this year. Ahead of expectations, Sea will continue to grow WOW






VERY BULLISH on future.

 

Tomorrow, you will have a couple of conference calls to make comparisons.

SWA and UAL

 

I guess that's different from the RJ's being "self financed"?

 

There was a bit of a mood change.

These Q&As are always intriguing and then entertaining when the regular reporters start asking questions.

Ooooh. See, she asked about FAR 117... "we've been able to handle that incredibly successfully" "manage through it quite effectively" "PWA already had a lot of flexibility"

And ATL asking for more service by other international carriers? This city is confused about their place in the world. Dang, landing free in ATL is 1/2 what it is in Miami. Somewhere I once heard CLE was one of the top 3 expensive in the country.

 

What was our 2013 first quarter pretax profit for a point of reference?

 

Well, free cash flow was $457M last year and $390M this year with $1.1B last year in operating cash flow and $.951B this year.