SWA posts $140M 3Q loss due to hedging

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10-31-2011 | 01:42 PM

#41

Monkeyfly

Widebody

Joined: Apr 2010

Posts: 777

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From: 777 CAP

Quote:

Originally Posted by Sniper

Exactly. Southwest has the highest 737 pilot pay in the US (for now, hopefully that will change), but some of the lower overall employee costs. Southwest spends less $ on employees as a whole, but the employees actually put a higher % of that $ in their own pockets.

not the pilots...

11-01-2011 | 12:08 AM

#42

Rolf

Line Holder

Joined: Mar 2010

Posts: 664

Likes: 1

Monkeyfly,

Where did you find that? It looks like I get paid $4,-/hour/pax which comes out to $450,-/hour with our load factors. I need to call payroll!

11-01-2011 | 08:30 AM

#43

KC10 FATboy

Gets Weekends Off

Joined: Jun 2007

Posts: 4,196

Likes: 51

From: Legacy FO

Quote:

Originally Posted by Jay5150

All big airlines hedge. They were all hedged at near the same price as SW back when SW had the great hedges in place. The difference is that as the other airlines got into deeper & deeper financial trouble, they resorted to selling their fuel hedges to raise capital. That's the cliff notes version. You guys kill me with the way you state how something happened when, in reality, you haven't a clue of how things really went down.

And there is also a difference between hedging and trying to make a killing on the hedge (big speculation) and hedging to protect yourself from an increase or decrease in fuel prices.

11-02-2011 | 12:23 AM

#44

phalanxo

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Joined: Mar 2010

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Quote:

Originally Posted by Rolf

Monkeyfly,

Where did you find that? It looks like I get paid $4,-/hour/pax which comes out to $450,-/hour with our load factors. I need to call payroll!

2 pilots. Plus benefits, employer taxes, etc, other expenses... employees come with associated expenses not just the wage.

11-02-2011 | 06:01 PM

#45

KC10 FATboy

Gets Weekends Off

Joined: Jun 2007

Posts: 4,196

Likes: 51

From: Legacy FO

Imagine that ...

September traffic slips at BHM - Birmingham Business Journal

Traffic at BHM for Southwest Airlines Co. (NYSE: LUV), the airport's largest carrier, was down 3.8 percent during the month.

Delta Air Lines Inc. (NYSE: DAL), the second largest carrier, experienced a 2.3 percent increase in September traffic at BHM.

11-02-2011 | 07:32 PM

#46

Sniper

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Joined: Oct 2006

Posts: 1,001

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Quote:

Originally Posted by phalanxo

2 pilots. Plus benefits, employer taxes, etc, other expenses... employees come with associated expenses not just the wage.

The title of the chart is "wage costs". I don't think it includes anything other than wages. That's one of the keys, actually. WN has no A or B fund, for instance, which keeps costs lower. Health care isn't 100% covered either.

Whatever the actual costs for Southwest, the terms and conditions seem to be acceptable, considering most Southwest pilots don't have resumes out elsewhere, while many guys @ other carriers have resumes @ Southwest.