SWA 2Q Profit Falls

Reply Subscribe

Page 1 of 3

Thread Tools

Search this Thread

07-18-2007 | 05:52 AM

Oldfreightdawg

Thread Starter

Gets Weekends Off

Joined: Sep 2006

Posts: 392

Likes: 0

From: B-737

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???

07-18-2007 | 06:35 AM

mulcher

gets time off

Joined: Apr 2007

Posts: 1,513

Likes: 95

Um they just did.

07-18-2007 | 09:17 AM

1Seat 1Engine

Gets Weekends Off

Joined: Aug 2006

Posts: 1,385

Likes: 0

From: 737 Right

Quote:

Originally Posted by Oldfreightdawg

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???

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

07-18-2007 | 10:02 AM

Oldfreightdawg

Thread Starter

Gets Weekends Off

Joined: Sep 2006

Posts: 392

Likes: 0

From: B-737

Quote:

Originally Posted by 1Seat 1Engine

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.

07-18-2007 | 10:47 AM

Sr. Barco

Gets Weekends Off

Joined: Feb 2005

Posts: 500

Likes: 0

Quote:

Originally Posted by Oldfreightdawg

I wouldn't be worried if I was working there. Yet.

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

S.B.

07-18-2007 | 12:07 PM

Roger Ball

Line Holder

Joined: Mar 2005

Posts: 85

Likes: 0

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

07-18-2007 | 03:06 PM

Oldfreightdawg

Thread Starter

Gets Weekends Off

Joined: Sep 2006

Posts: 392

Likes: 0

From: B-737

Quote:

Originally Posted by Sr. Barco

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

S.B.

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.