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WN reports most recent quarterly financials
http://southwest.investorroom.com/in...s=43&item=1945
Record profit, up more than 61% from last year's 3Q. ROIC 19%. Lots more at link. |
Originally Posted by toomanybooks
(Post 23721457)
http://southwest.investorroom.com/in...s=43&item=1945
Record profit, up more than 61% from last year's 3Q. ROIC 19%. Lots more at link. ^^^ |
When's the last time pretty much every US airline was making decent profits? I haven't been following them for very long but you always hear about how many of them lost money for so many years and now it's finally turned around.
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This is the first time they've posted an increase in ASM's in a while.
They have been down slightly for most of the year. I also notice that they have 55 firm aircraft orders for 2014 and as of September 30 have received only 25 of them. |
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Originally Posted by toomanybooks
(Post 25160299)
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But, but, but how can this be with so many planes moving out of the ATL market.:cool:
Outstanding news |
Implications for Labor Contracts
As a shareholder, I like all these profits---and have benefited from the 100s of millions of dollars going into increased dividends and stock buy backs.
But I am sure labor will be pointing out that some of this cash should be going to the employees. In the past, SW poured profits into growing the business--something that benefited both shareholders and employees. Perhaps the economics no longer support growing the business, but it makes it really hard for SW to claim that paying its employees more will threaten the business--since it is pretty clear it will just change the balance of $$ between employees and shareholders |
Originally Posted by oswaldjacoby
(Post 25162859)
But I am sure labor will be pointing out that some of this cash should be going to the employees. In the past, SW poured profits into growing the business--something that benefited both shareholders and employees.
They're doing more than "pointing it out," apparently. Southwest Airlines Could Hit Stormy Weather as Flight Attendant Contract Vote Concludes "Yet another Southwest flight attendant said the likely news of Southwest's record profits on Thursday could seal the rejection of the contract among even those Southwest flight attendants who are still on the fence about which way to vote. Online voting closes at 12 noon central time on Friday, and the results of the vote are expected to be announced to rank and file at 6 p.m. the same day. Even some members of the team of so-called educators who have fanned out across the Southwest system in recent days to sell flight attendants on the new contract concede the outcome of the vote could go against Southwest CEO Kelly and the tentative contract the airline's top executive wants to see ratified. For many flight attendants, two of the biggest issues in the proposed contract are the longer duty day (up from 10.5 to 12 hours) and new vacation rules. But many flight attendants also argue the Southwest company culture has changed dramatically in recent years, and not for the better since Kelly took control of the company. Those sentiments may factor into the vote outcome as well." |
Earnings call transcript:
http://seekingalpha.com/article/3352...pt?part=single Some interesting stuff about how changes to the financial treatment of FF program will bring them a big profit coming up. |
Originally Posted by LegalTender
(Post 25162933)
+1
They're doing more than "pointing it out," apparently. Southwest Airlines Could Hit Stormy Weather as Flight Attendant Contract Vote Concludes Gary Kelly has some splainin to do. http://www.greenbuildingadvisor.com/...ckyricardo.jpg |
Originally Posted by diver858
(Post 25173391)
Voted down, by a large majority - http://www.bizjournals.com/chicago/n...html?ana=yahoo
Gary Kelly has some splainin to do. http://www.greenbuildingadvisor.com/...ckyricardo.jpg |
Conference call Oct 22 to discuss 3Q financials.
http://southwest.investorroom.com/in...s=43&item=2060 |
Originally Posted by toomanybooks
(Post 25573483)
Conference call Oct 22 to discuss 3Q financials.
http://southwest.investorroom.com/in...s=43&item=2060 |
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Originally Posted by HPN-HRL
(Post 25616735)
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4Q 2015 results coming in 2 days, Jan. 21
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Originally Posted by toomanybooks
(Post 26044762)
4Q 2015 results coming in 2 days, Jan. 21
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 |
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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. |
Hence the reason airfares have not declined, ta-da!
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Originally Posted by diver858
(Post 26205410)
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? |
Originally Posted by hazelrah
(Post 26209597)
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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Originally Posted by toomanybooks
(Post 26517764)
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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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http://investors.southwest.com/news-...2016-113113408
I guess when you spend squat on IT, lots of profits can fall to the bottom line. |
Originally Posted by toomanybooks
(Post 26947055)
http://investors.southwest.com/news-...2016-113113408
I guess when you spend squat on IT, lots of profits can fall to the bottom line. |
Originally Posted by jeffandnicole
(Post 26947436)
Goes to show that even though certain people here have loudly complained about Southwest's current pricing and strategies, the people at Southwest know a bit more at how to run a company. Lose a few customers but secure record profits? That's Business 301. (Business 101...how to make money. Business 201...how to draw in customers. Business 301...how to determine which customers are making you the most money, and which customers are a drain on profits.)
Plus a helpful hand from our government allowing competition to dry up, perhaps a result of Business 202, Lobby & Influencing Strategies |
Originally Posted by joshua362
(Post 26947456)
Well said.
Plus a helpful hand from our government allowing competition to dry up, perhaps a result of Business 202, Lobby & Influencing Strategies |
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Originally Posted by jeffandnicole
(Post 26947436)
Goes to show that even though certain people here have loudly complained about Southwest's current pricing and strategies, the people at Southwest know a bit more at how to run a company. Lose a few customers but secure record profits? That's Business 301. (Business 101...how to make money. Business 201...how to draw in customers. Business 301...how to determine which customers are making you the most money, and which customers are a drain on profits.)
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Originally Posted by jeffandnicole
(Post 26947436)
Goes to show that even though certain people here have loudly complained about Southwest's current pricing and strategies, the people at Southwest know a bit more at how to run a company. Lose a few customers but secure record profits? That's Business 301. (Business 101...how to make money. Business 201...how to draw in customers. Business 301...how to determine which customers are making you the most money, and which customers are a drain on profits.)
Chairman and CEO Gary Kelly credited the record revenue and lower fuel prices for the increase in profit. This has nothing to do with customer management. |
Wn 10-q, 3q 2016
http://hsprod.investis.com/shared/v2...=&SEQ=&SQDESC=
Edit: Why did my caps disappear in the headline? Odd. |
Cost of the Computer Meltdown?
Numbers seem pretty steady for the year. This is the most interesting part.
3 months ending 9/30 9 months ending 9/30 2016 2015 2016 2015 Operating income $ 695 $1,225 (43.3)% $2,915 $3,090 (5.7)% Net income $ 388 $ 584 (33.6)% $1,722 $1,645 4.7% Net income per share, diluted $ 0.62 $ 0.88 (29.5)% $ 2.70 $ 2.45 10.2% Looks like they took a hit of $530 million in the 3rd quarter. That has to be mostly from the great computer meltdown starting July 20. |
I guess this explains why they couldn't reimburse me for the $100 piece of luggage they broke.
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