Southwest Reports Net Loss Due to Fuel Hedges
#71
Quote from Yahoo Finance:
"Continental Airlines Facing Challenges
On Thursday, Continental reported revenue of -$236 million or -$2.14 a share. Analysts were expecting revenue of $4.12 billion or -$1.49 a share. Compared with Southwest this carrier is worse shape with $3.9 billion in cash and $5.79 billion in debt. Southwest, on the other hand, has $5.8 billion in cash and $2.66 billion in debt. What the recent earnings say about both carriers is that, while financially sound, they are facing the challenges of high fuel prices and a slowing economy. That said both of these carriers have enough cash and low enough debt to overcome their challenges. Shares of Continental were at $12.74 down 10 cents within the first hour of trading and closed the day up $2.91 at $15.75"
"Continental Airlines Facing Challenges
On Thursday, Continental reported revenue of -$236 million or -$2.14 a share. Analysts were expecting revenue of $4.12 billion or -$1.49 a share. Compared with Southwest this carrier is worse shape with $3.9 billion in cash and $5.79 billion in debt. Southwest, on the other hand, has $5.8 billion in cash and $2.66 billion in debt. What the recent earnings say about both carriers is that, while financially sound, they are facing the challenges of high fuel prices and a slowing economy. That said both of these carriers have enough cash and low enough debt to overcome their challenges. Shares of Continental were at $12.74 down 10 cents within the first hour of trading and closed the day up $2.91 at $15.75"
#72
On Reserve
Joined APC: Jun 2008
Position: B777
Posts: 10
It's amazing ...having left the US few years back and looking at the industry/economy home..reading various newspaper worldwide ..assessing and looking at the the US ..you guys are in for an awakening ...!! quite sad what the airlines are going through at the moment..although not surprising at all.
#73
HOSED BY PBS AGAIN
Joined APC: Mar 2005
Posts: 1,713
#74
my friends who fly for business don't even purchase first class tickets because they use miles for the upgrade. There company doesn't even allow it. They have to get it ok'ed. they buy coach tickets just like on southwest.
when did southwest stop taking checked luggage? that's a first time I heard it...
my last flight on CAL no movie and no meal.
codeshares, very thin on this one.
international destinations are just different destinations. can they cost more? sure, but the ticket price should reflect that.
different airplanes doesn't make what you do different.
where does jetblue and airtran fit into your way of thinking? the same or completely different?
#75
when you both fly from cleveland to midway or houston to dallas what are the differences? Besides hobby/intercontinental and the overhead space of a 737 vs. 145.
#77
It's amazing ...having left the US few years back and looking at the industry/economy home..reading various newspaper worldwide ..assessing and looking at the the US ..you guys are in for an awakening ...!! quite sad what the airlines are going through at the moment..although not surprising at all.
Given the fact that we have a system of unipolarity with the US being a hegemon, if the US is in for an awakening, so are the rest of the world markets!
AL
#78
Super Moderator
Joined APC: Dec 2007
Position: DAL 330
Posts: 6,851
how much does putting Seat 6B on the boarding pass cost you guys?
my friends who fly for business don't even purchase first class tickets because they use miles for the upgrade. There company doesn't even allow it. They have to get it ok'ed. they buy coach tickets just like on southwest.
when did southwest stop taking checked luggage? that's a first time I heard it...
my last flight on CAL no movie and no meal.
codeshares, very thin on this one.
international destinations are just different destinations. can they cost more? sure, but the ticket price should reflect that.
different airplanes doesn't make what you do different.
where does jetblue and airtran fit into your way of thinking? the same or completely different?
my friends who fly for business don't even purchase first class tickets because they use miles for the upgrade. There company doesn't even allow it. They have to get it ok'ed. they buy coach tickets just like on southwest.
when did southwest stop taking checked luggage? that's a first time I heard it...
my last flight on CAL no movie and no meal.
codeshares, very thin on this one.
international destinations are just different destinations. can they cost more? sure, but the ticket price should reflect that.
different airplanes doesn't make what you do different.
where does jetblue and airtran fit into your way of thinking? the same or completely different?
Whats up with starting your sentences in lower case letters? If you are going to do that, then why bother with the periods and questions marks?
Scoop
#79
Gets Weekends Off
Joined APC: Apr 2007
Posts: 3,800
Well, know that you know I'm "stupid" I'll go back to the basics, They have many strategies to ensure a high probability of success and profit. Certainly the magnitude of the profits relied on fuel hedging. However, keeping apples to apples for clarity, if WN makes $100 on their system operations, and because of fuel hedging, it is now $400, the fact remains that the company made a profit without fuel hedges, albeit lower (83% lower by your figures). However, this strategy of profitabilty predates fuel hedging (same type aircraft, point to point, etc). That is fact. Is it a long term strategy now? Absolutely and they have so publicly stated.
Also, don't you see the irony of stating that the (non fuel) WN CASM is "surprisingly close to several of the post bankruptcy legacies"? Wow,you knock a company that pays pretty well, hasn't driven themselves into bankruptcy to lower CASM. Again, Wow.
Would you not agree that going into bankruptcy is the fault of management and screws alot of folks? Would you not agree that bankruptcy in the airline business is a completely unfair competitor? Well they are competing unfairly using other folks to pay their bills thus causing further decline in our profession.
Seems contrary to me that as so many of us struggle in this profession that we knock one of the few companies that can make a profit with or without fuel hedges. Oh well, call me stupid.<g>
Also, don't you see the irony of stating that the (non fuel) WN CASM is "surprisingly close to several of the post bankruptcy legacies"? Wow,you knock a company that pays pretty well, hasn't driven themselves into bankruptcy to lower CASM. Again, Wow.
Would you not agree that going into bankruptcy is the fault of management and screws alot of folks? Would you not agree that bankruptcy in the airline business is a completely unfair competitor? Well they are competing unfairly using other folks to pay their bills thus causing further decline in our profession.
Seems contrary to me that as so many of us struggle in this profession that we knock one of the few companies that can make a profit with or without fuel hedges. Oh well, call me stupid.<g>
#80
Eric
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