SWA 2Q Profit Falls
 

http://www.thestreet.com/_yahoo/news...FREE&cm_ite=NA

This is not a cost problem, everybody has that. Notice their unit revenue fell by 3.4%. Maybe it's time to raise prices???

Um they just did.

Also notice that overall revenue was up 5.5% for a record 2nd Quarter.

Yeah. But unit revenue is a measure of efficiency. Their aggregate revenue increases come from producing more ASM's, if yields continue to fall it won't matter how much more revenue they produce. Kelly has said as much, and I'm sure they're working hard to fix it. It will be interesting to see what they do. i.e. assigned seating, entertainment, food service, international, or whatever it takes to attract premium fares. Or maybe they come up with something no one else has thought of??? If anybody can fix it, they can. I wouldn't be worried if I was working there. Yet.

I'm curious as to when you would be worried.

S.B.

I would be worried if they start blowing off the NASCAR crowd and actively marketing to homos...oops

Like I said, I wouldn't. I'm not picking on SWA, I wish every airline had their management talent and prospects. My point is they have a revenue problem, not a fuel cost problem, and they know it. My guess is they will fix it. If they don't, and yields continue to fall, then I'd worry.

Who cares, if they pay higher fares. I work behind a locked door.

LOL. You hit that one right on. LMAO

oh my lord... 60 or so straight quarters of profitability, and you think an airline with 12B in cash is getting into a bind.....pilots ARE stupid