SWA profits WITHOUT fuel hedging.
07-19-2006, 10:08 AM
#1
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SWA profits WITHOUT fuel hedging.
From our internal company website:
Southwest today reported a second quarter 2006 net income of $273 million, excluding unrealized SFAS 133 “Accounting for Derivative Instruments and Hedging Activities,” gains/losses. This represents an increase of 87 percent compared to $146 million for second quarter 2005.
Also, "We have many efforts underway to conserve fuel, and we are pleased to announce our decision to install Blended Winglets on up to 90 of our Boeing 737-300 aircraft, beginning in early 2007."
S.B.
Southwest today reported a second quarter 2006 net income of $273 million, excluding unrealized SFAS 133 “Accounting for Derivative Instruments and Hedging Activities,” gains/losses. This represents an increase of 87 percent compared to $146 million for second quarter 2005.
Also, "We have many efforts underway to conserve fuel, and we are pleased to announce our decision to install Blended Winglets on up to 90 of our Boeing 737-300 aircraft, beginning in early 2007."
S.B.
07-19-2006, 11:54 AM
#4
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Position: FO, looking left
Posts: 1,057
Hey Sr. Barco. Try reading it again. Apparently you misunderstood!
There income was $273 million dollars. Their gains from fuel hedges were $225 million dollars. Press subtract. They would have made a grand total of $48 million dollars. Lets all celebrate. American made $291 million dollars. Remember that the 2nd quarter is the STRONGEST quarter by far for airlines.
I want to keep reminding people that I am in no way wishing Southwest a hard time. Nor am I predicting they will go broke. I just like to point out that Southwest has been in a protective bubble the last 4 years because of fuel hedging. Southwest is paying $36 a barrel for oil while everyone else is paying $75 a barrel! Fuel is an airlines largest expense. And what happens when an airlines largest expense more than DOUBLES?
I believe this is the 1st quarter in the past 4 years that Southwest has made a profit without gains from fuel hedging. A grand total of $48 million dollars (during the strongest quarter of the year). Yippie.
All I am saying is Southwest will no longer rule the industry when these hedges run out. They will not be able to undercut other airlines like they did the past 4 years. Other airlines will start making money, pilot pay and QOL will increase.
It's a rough world out there Southwest. Are you ready? 2009
There income was $273 million dollars. Their gains from fuel hedges were $225 million dollars. Press subtract. They would have made a grand total of $48 million dollars. Lets all celebrate. American made $291 million dollars. Remember that the 2nd quarter is the STRONGEST quarter by far for airlines.
I want to keep reminding people that I am in no way wishing Southwest a hard time. Nor am I predicting they will go broke. I just like to point out that Southwest has been in a protective bubble the last 4 years because of fuel hedging. Southwest is paying $36 a barrel for oil while everyone else is paying $75 a barrel! Fuel is an airlines largest expense. And what happens when an airlines largest expense more than DOUBLES?
I believe this is the 1st quarter in the past 4 years that Southwest has made a profit without gains from fuel hedging. A grand total of $48 million dollars (during the strongest quarter of the year). Yippie.
All I am saying is Southwest will no longer rule the industry when these hedges run out. They will not be able to undercut other airlines like they did the past 4 years. Other airlines will start making money, pilot pay and QOL will increase.
It's a rough world out there Southwest. Are you ready? 2009
07-19-2006, 12:36 PM
#6
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Posts: 120
Originally Posted by Eric Stratton
So they're hedged until 2009. I'm sure they are real worried right now.
07-19-2006, 12:51 PM
#8
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Position: Capt. B737
Posts: 329
The Dallas-based carrier earned $333 million, or 40 cents per share, in the quarter ended June 30. Compare that to $144 million, or 18 cents per share, in the year-ago quarter. Even excluding items related to derivatives and hedging, the carrier had a profit of $273 million, or 33 cents per share.
Good job SWA!
Apparently you misunderstood!
There income was $273 million dollars. Their gains from fuel hedges were $225 million dollars. Press subtract. They would have made a grand total of $48 million dollars. Lets all celebrate. American made $291 million dollars. Remember that the 2nd quarter is the STRONGEST quarter by far for airlines
There income was $273 million dollars. Their gains from fuel hedges were $225 million dollars. Press subtract. They would have made a grand total of $48 million dollars. Lets all celebrate. American made $291 million dollars. Remember that the 2nd quarter is the STRONGEST quarter by far for airlines
WHo's right???
07-19-2006, 01:17 PM
#9
Don't want to participate
Joined APC: Jul 2005
Position: 737 Left Seat
Posts: 1,016
Ryan is the village "special person." He doesn't understand airline financials at all, he only knows how to type. He doesn't understand how hedging gains are accounted for or declared in quarterly statements. The best part is that the more you correct him, the more he sticks to his original nonsense and even embellishes it.
Of course, maybe I'm the village idiot for believing that he actually means what he writes! Maybe he's just posting bogus stuff here to get a response, I don't know.
I don't know how anybody could be that dense.
Of course, maybe I'm the village idiot for believing that he actually means what he writes! Maybe he's just posting bogus stuff here to get a response, I don't know.
I don't know how anybody could be that dense.
Last edited by LuvJockey; 07-19-2006 at 01:24 PM.
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