fireman0174

The biggest single difference is management. SWA is light years ahead of the competition. I say that as someone who worked for a carrier other than SWA. (I HATE the term "legacy carrier". )

ryane946

Sorry, but that information is FALSE. I actually bought stock in SWA in March 03, and just sold it in December 05. I am sure they were almost 100% hedged at $26 a barrel through 05, and their hedges will decrease slightly in 06 and 07 (To something like 70% at $26 a barrel), and will eventually run out in 08 or 09.


Finally, I don't like personally attacking someone on a forum. I am just going to respond to your accusations that I am dumb and don't know anything about aviation finance.

1) Yes I have a degree. I have a degree in Aerospace Engineering in one of the top 10 aerospace programs in the country (Well, #10, but still...)

2) Unlike you, I actually put my money where my mouth is. I am so confident I know the airline industry, in March 03, I bought stock in 3 companies (Boeing, Skywest, and Southwest)
Bought Boeing for $27.02 a share (Boeing is worth $69.58 a share)
Bought Skywest for $11.16 a share (Skywest is worth $26.53 a share)
Bought Southwest for $13.74 a share (Sold SW for $16.55 a share in Dec 05)
FYI, I made over $6,000 in 2.5 years.
So don't tell me I don't know economics!

LuvJockey

You are posting misinformation here and stating that it is fact. What I posted is correct. Southwest has been profitable for the first three quarters of the year even if you don't include their fuel hedging gains. If you doubt me, please call SWA investor relations, and they'll break out the results line by line for you. In addition, you earlier stated that Soutwest barely made a profit this year INCLUDING hedges. 1Q profit was $76 million, 2Q was $159 million, 3Q was $227 million. For the first three quarters, that is a profit of $462 million dollars. It would be correct to say that Soutwest's profits will decline in this environment as hedges decrease, but it is idiocy to say that SWA would fold when they are profitable now even without fuel hedges. We'll see what the 4Q results are on Wednesday, and I'll be happy to post the info for you on whether they posted a profit for the year ex-hedging (that means without hedging.)

Thus far, the media has failed miserably in covering SWA financials. They fail to recognize that SWA paid taxes and profit sharing on the money that they gained through hedging. It's bizarre to me that a company that actually does the right thing by paying its employees profit sharing money that includes hedging gains is criticized for having high labor costs, while the suits at other carriers convince their pilot groups that they are overpaid, then pocket whatever they take from labor groups in the form of bonus money or stock when an airline emerges from bankruptcy. All the while saying, "SWA labor cost is too high, they'd be losing money without hedging, their pay rates won't hold up, that's why we can't pay you any more. Someday, we'll be able to pay you more, now just isn't a good time." They are then celebrated for getting their labor costs under control, and idiots even come to this board parroting what their management has sold them.

You can call what I wrote a personal attack if you'd like, I just have little patience with those who post bad information and claim credibility when they have none. Please let me know from where you are getting your financial insight into SWA, and post it here. I don't care if you made money on a few stocks you've traded, that doesn't give you credibility. If you can't understand what I wrote and what the financial statements say, you don't know economics. If you say that a $462 million dollar profit is barely profitable, you don't know economics. If you aren't sure what SWA's hedging position is when it is spelled out on all of its quarterly statements, you don't know economics. And finally, if you readily accept the management lines that I quoted earlier, you don't know economics, stock picking ability or not.

Punkpilot48

Hey I dont make that stuff up. I hear what I hear through people I know that Ive been smart enough to keep in touch with.

About that magneto check.....sorry I dont instruct for free.

4th Level

[QUOTE=ryane946]A little? The largest expense at an airline tripples, and prices will only go up a little??? That would definately cause SW to fold./QUOTE]


Really? FOLD? After 33 years of CONSECUTIVE profitability, ya know, I think you're right. I'm selling my stock, quiting my job and applying at Zantop.

You da Man!