WN reports most recent quarterly financials

Old Oct 20, 15, 12:35 am
  #16  
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Originally Posted by toomanybooks View Post
Conference call Oct 22 to discuss 3Q financials.

http://southwest.investorroom.com/in...s=43&item=2060
We will see what happens. Can they order new 737-900ER/MAX aircraft? Will they consider it?
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Old Oct 25, 15, 5:06 pm
  #17  
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3Q 2015 earnings call transcript:

http://www.thestreet.com/story/13336...ranscript.html
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Old Oct 26, 15, 6:25 am
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Incorrect link: your link goes to the transcript for RCL

Correct link is here.
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Old Oct 26, 15, 7:53 am
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Originally Posted by HPN-HRL View Post
Incorrect link: your link goes to the transcript for RCL

Correct link is here.
Huh. I guess they changed it. I copy/pasted.
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Old Jan 19, 16, 1:54 pm
  #20  
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4Q 2015 results coming in 2 days, Jan. 21
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Old Jan 19, 16, 2:06 pm
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Originally Posted by toomanybooks View Post
4Q 2015 results coming in 2 days, Jan. 21
Shivering with anticipation.

Increased unit revenue = Higher fares

Expand operating margins
= Increase fares

Revenue premium = Higher fares than other airlines

Push fuel savings to the bottom line = Keep fares high and avoid overspending on expansion, even when fuel prices go down

Capacity discipline = Not adding many flights

Increased load factor = Fuller planes

Upgauging through densification = Squeezing more seats onto a plane

Yield = Average fares, on a unit basis

Curtail revenue dilution
= Keep fares high
(h/t AJC)
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Old Jan 19, 16, 2:42 pm
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Originally Posted by LegalTender View Post
Shivering with anticipation.



(h/t AJC)
Continue to play hardball during protracted labor negotiations to maintain some of the lowest compensation plans of any major carrier.
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Old Jan 21, 16, 7:23 am
  #23  
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http://investors.southwest.com/news-...2016-112617923
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Old Feb 18, 16, 9:56 am
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The Company attempts to manage its risk associated with volatile jet fuel prices by utilizing over-the-counter fuel derivative instruments
to hedge a portion of its future jet fuel purchases. However, as evidenced by the extreme decline in jet fuel prices during the fourth
quarter of 2014 and early 2015, and again in late 2015, energy prices can fluctuate significantly in a relatively short amount of time.
Because the Company uses a variety of different derivative instruments at different price points, the Company is subject to the risk that
the fuel derivatives it uses will not provide adequate protection against significant increases in fuel prices and could in fact result in
additional volatility in the Company’s earnings. The Company is also subject to the risk that additional cash collateral may be required
to be posted to fuel hedge counterparties, which could have a significant impact on the Company’s financial position and liquidity.


According to page 38, WN lost $254 + $323 = $577 million in 2015 due to bad bets on fuel, may end up even worse in 2016.

According to http://www.businessinsider.com/r-us-...d-again-2015-7, "...At July 20 (2015) prices, those hedges will cost Southwest $308 million when they settle this year. Through 2018, Southwest said its hedge book is $1.3 billion in the red, although that could change if prices rise..."

Coupled with the current labor issues, Gary Kelly should start looking over his shoulder.
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Old Feb 18, 16, 6:21 pm
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Hence the reason airfares have not declined, ta-da!
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Old Feb 19, 16, 2:03 am
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Originally Posted by diver858 View Post
The Company attempts to manage its risk associated with volatile jet fuel prices by utilizing over-the-counter fuel derivative instruments
to hedge a portion of its future jet fuel purchases. However, as evidenced by the extreme decline in jet fuel prices during the fourth
quarter of 2014 and early 2015, and again in late 2015, energy prices can fluctuate significantly in a relatively short amount of time.
Because the Company uses a variety of different derivative instruments at different price points, the Company is subject to the risk that
the fuel derivatives it uses will not provide adequate protection against significant increases in fuel prices and could in fact result in
additional volatility in the Company’s earnings. The Company is also subject to the risk that additional cash collateral may be required
to be posted to fuel hedge counterparties, which could have a significant impact on the Company’s financial position and liquidity.


According to page 38, WN lost $254 + $323 = $577 million in 2015 due to bad bets on fuel, may end up even worse in 2016.

According to http://www.businessinsider.com/r-us-...d-again-2015-7, "...At July 20 (2015) prices, those hedges will cost Southwest $308 million when they settle this year. Through 2018, Southwest said its hedge book is $1.3 billion in the red, although that could change if prices rise..."

Coupled with the current labor issues, Gary Kelly should start looking over his shoulder.

Oh please, all the majors hedge to one degree or another, and when one is caught on the wrong side of the hedge you lose money. Delta lost $1.95B and United $650M in the first 3 quarters of 2015 on their hedging.

http://www.bloomberg.com/news/articl...ost-to-hedging.

Do you spend $1000 on your annual homeowners insurance and then whine about losing $1000 because you didn't make a claim?
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Old Feb 21, 16, 3:02 pm
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Originally Posted by hazelrah View Post
Do you spend $1000 on your annual homeowners insurance and then whine about losing $1000 because you didn't make a claim?
Apples and oranges. Fuel is one of the largest expenses for an airline, why some play the hedge game. Delta owns its own refinery, has one of the best comp plans for its pilots and FA, provided employees record breaking profit sharing this quarter. In contrast, WN pilots and FAs are the lowest paid among the majors, have been without a contract for 5 years, there is increased talk of pilot job actions, gross margin for the most recent quarter was 15.2% - just over Kelly's red line of 15%.
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Old Apr 21, 16, 2:03 pm
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http://seekingalpha.com/pr/16460246-...quarter-profit
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Old Apr 21, 16, 4:13 pm
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Originally Posted by toomanybooks View Post
Costs are down, gross margin and passenger loads are up, yet Kelly still plays hardball with labor (Pilots and FA), who have been working for more than 5 years without a contract, now among the lowest paid of all major US carriers.
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Old Apr 22, 16, 4:59 am
  #30  
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Earnings call transcript is out. I read it via the Seekingalpha iOS app (free, but must download).
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