And then he says: "The company's net income of $499.0 million last year is less than what it earned in 2001, and its stock has spent the last four years shuttling between $12 and $20 a share."

Has any other passenger airline made $499 million in the last FIVE years?

This from our employee newsline dated March 12, 2007.

"We had a couple of announcements last week. First of all, we were honored to be named to the Fortune Magazine’s list of Most Admired Companies. For 2006, we came in number five on the overall list, and that’s really great! Ahead of us were General Electric, Starbucks, Toyota, and Berkshire Hathaway. So, that’s pretty good company."

For full disclosure...."In the specific airline industry list, we came in second,
following Continental."

Great job Continental!

S.B.

 

Boys, I’m not a Wharton School of Business grad nor did I sleep at a Holiday Inn Express, but it looks to me like Southwest’s hedges are just fine. I think Southwest is ‘flooding’ the market to artificially keep yields low to decrease the likelihood of success of new entrants, i.e. Skybust and Virgin. It’s either a plan of sheer genius or pure stupidity. Time will tell.


Tom

PS It will be tough to reinvest with low yields. I hope
SW will continue to be the Walmart and not SkyBUST.

http://www.bloomberg.com/apps/news?p...d=atVih.eTATM4


U.S. Airline Companies' Jet Fuel Hedging Percentages (Table)
By Phillip Cruz
May 31 (Bloomberg) -- The following table shows the percentage of hedging by U.S. airlines against fluctuations in jet-fuel prices. Data is compiled from company regulatory filings, statements and interviews. The table is sorted in alphabetical order by company name.

Hedge Price As of
Company Percentage Period ($/Barrel) Date
================================================== ====================
AirTran 22.5% CY 2007 1.81 (1) 3/31/07

Alaska Air 53.0% Q2 2007 57.31 3/31/07
49.0% Q3 2007 56.98 3/31/07
41.0% Q4 2007 59.67 3/31/07
36.0% Q1 2008 61.92 3/31/07
29.0% Q2 2008 63.53 3/31/07
21.0% Q3 2008 63.94 3/31/07
23.0% Q4 2008 64.20 3/31/07
5.0% Q1 2009 67.68 3/31/07
5.0% Q2 2009 67.50 3/31/07
6.0% Q3 2009 68.25 3/31/07

American Airlines 26.0% CY 2007 64.00 3/31/07

Continental Airlines 35.0% Q2 2007 66.08 (4) 3/31/07
10.0% Q3 2007 66.08 (4) 3/31/07

Delta Air Lines 48.0% Q2 2007 1.91-1.71 (3) 4/18/07
21.0% Q3 2007 1.94-1.76 (3) 4/18/07

JetBlue Airways 41.0% CY 2007 na 3/31/07

Midwest Air 90.0% CY 2007 2.06 (2) 3/31/07

Northwest Airlines 29.0% CY 2007 53.00-56.70 (6)(2) 3/31/07
10.0% CY 2007 62.00-64.98 (2) 3/31/07

Southwest Airlines 95.0% CY 2007 50.00 Mid-Jan '07
65.0% CY 2008 49.00 Mid-Jan '07
"over" 50.0% CY 2009 51.00 Mid-Jan '07
"over" 25.0% CY 2010 63.00 Mid-Jan '07
15.0% CY 2011 64.00 Mid-Jan '07
15.0% CY 2012 63.00 Mid-Jan '07

United Airlines 23.0% Q2 2007 59.00-69.00 (2) 4/24/07

US Airways 60.0% Q2 2007 (5) 4/26/07
44.0% Q3 2007 (5) 4/26/07
27.0% Q4 2007 (5) 4/26/07

(1) Weighted average price per gallon of aviation fuel.
(2) Fuel hedge "collars" with floor and ceiling prices.
(3) Combination of swaps and collars w/ave cap and floor.
(4) Additional heating oil swaps at $1.65 and option contracts at
$1.87/$1.70 call/put.
(5) Heating oil cost collars w/jet fuel equivalent between $2.11/$2.23 and
$1.91/$2.03.
(6) Plus related call options at $72.

 

Hey Gman, what's Kobe buying?

 

and once again let's not forget that new routes take , on average, 2-5 years to be profitable ( closer to two if you already fly to those 2 cities and closer to 5 or a bit more if they are both new cities), so in 5 years we will see.

for now who cares about stock prices as an employee or long term investor? long term company success is what matters, not the stock price for 1-5 years. and who cares what airline analyst think? do they even think?has any of you ever heard them asking questions on the conference calls of different airlines? I'm embarrassed for them, how can they keep their jobs?

 

I agree.

Tom

 

I figured I might chime in before this thread is relagated to the afterlife of threads. First of all Gman, I am still waiting for Neeleman to come dump my lavs since he has free time now. Second point is that Gman made a decision to go to JBLU and the only way he can defend his career decision is to put everyone else down (mostly SWA) and pump up JBLU. It has been increasingly difficult to pump up a baloon which has been slowly descending lately. I hope that all the employees (including a friend of mine who is a chief pilot) at JBLU can patch the holes and begin ascending again. Neeleman was too much in the balast area (mostly hot air) and things should get better.

SWA has faced many difficult situations in the past and I will say that the current obstacles will have to be overcome. The idea that the sky if falling is overkill and those who are chicken littles like Gman are no more knowledgeable than palm readers. They hope for the failure of someone else to justify their own existence.

Examples abound during the existence of SWA of other airlines trying to squash our business model. Most beat their chest predicting the likely demise of SWA, because they had suddenly found the holy grail. History is littered with those such as Shuttle by United, Delta Express, Metrojet, Ted (although not dead yet), Western Pacific, Song, as well as others. Everyone is a formidable opponent, but Cost is the true threat and we are certainly trying to keep that area low and maintain our salary levels.

The most formidable threat of late has been the bankruptcy system which has robbed from the efficient and given to the inefficient. Costs at airlines that have gone through bankruptcy have been lowered on the backs of employees and have created an environment where efficient airlines (SWA) are put at a competitive disadvantage. The failure of one or more airlines would improve things drastically for the majority of employee groups with the unfortunate ending (or restarting of) those at inefficient airlines.

Bottom line is that Bankruptcy has stolen income from one group and given it to another. Sounds like welfare to me! Cheers!

 

Very well said. Unfortunately, CEOs and management don't suffer during this process, just the stockholders and the employees.

I'm a right wing, gun-nut, long time Republican. But that is just wrong. Somehow we have to find a way to tie business success or failure to the leadership. I ain't no pinko leftist...but I can see who the workers of the world could unite for revolution with that kind of injustice continuing to take place.

 

How did we steal from you? Do tell.

tom

 

I have an extra red bandana and a t-shirt of the che if you wan to borrow them

seriously I do agree with you " the history of all hierto existing society is the history of class strugless" . I won't tell you who wrote that since I 'm afraid your right wing nuts friends will try to send me to guantanamo

the protetarians already outnumber the burgeoissie in this coutry, so the only thing separating us from a peaceful revolution to change systems is the will and IQ of the people.

we need to start another First International

of my soap box now with my left fist up in the air

 

...disregard