WorldTraveler
Corn Field
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and you know I know you are right, robbed. 
1st Q Numbers look great!
- Thread starter swamt
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robbedagain
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- Oct 13, 2003
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well if you want to admit Im right Im quite a ok with that!
robbedagain
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when will WN release it swamt?
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I believe the release is set for 24th or 25th. If I am wrong I will correct.robbedagain said:
Here's some more great news of the estimates coming:
US major airlines poised to deliver solid 2Q2014 results as N Atlantic overcapacity signs emerge
Hoping all airlines will continue these improvements for many years to come. Here's a look at how much the merger is already helping AA thru the first Q, pretty sure the 2Q will continue.:
Overview: American-US Airways merger has positive 1Q revenue
I would be willing to bet SWA hits and exceeds the 15% ROIC for the 2Q. If I were to guess it'll be around the 17-18% maybe even larger and closer to the almighty 20%, now that would be great...
WorldTraveler
Corn Field
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Revenue increases only have meaning when compared to cost increases. The article notes that DL and UA are both expecting flat to up to 1% increases in costs while AA mainline costs should grow 1-3% and regional costs are expected to be up 5-7%.
WN is seeing very controlled costs so for DL, UA, and WN, RASM increases will impact profitability to a greater degree.
Note also that the article notes that AA, BA, and IB are leading capacity increases over the N. Atlantic where AF, DL, and LH have all expressed concern over excess capacity that will likely become more problematic after the peak summer season.
Also note that the order of domestic capacity (which appears to be less impacted by the int'l trends) is WN most domestic followed by DL, AA/US (combined), and then UA.
I too expect that WN will meet its financial goals this quarter, swamt.
WN is seeing very controlled costs so for DL, UA, and WN, RASM increases will impact profitability to a greater degree.
Note also that the article notes that AA, BA, and IB are leading capacity increases over the N. Atlantic where AF, DL, and LH have all expressed concern over excess capacity that will likely become more problematic after the peak summer season.
Also note that the order of domestic capacity (which appears to be less impacted by the int'l trends) is WN most domestic followed by DL, AA/US (combined), and then UA.
I too expect that WN will meet its financial goals this quarter, swamt.
robbedagain
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thanks swamt
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Here it is Robbed:robbedagain said:
Webcast Alert: Southwest Airlines to Discuss Second Quarter 2014 Financial Results on July 24 ...
robbedagain
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Much appreciated SWAMT US/AA is also to release it around that period too. It looks great
WorldTraveler
Corn Field
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the chances are quite good that WN will show strong numbers but this report shows that WN has lost a significant portion of its former advantages.
the chart on section 8 here shows that WN most recently had the 3rd highest operating margin and paid the highest for jet fuel.
http://marketrealist.com/2014/07/low-cost-carriers-competitive-advantage-challenged-by-fuel-costs/
the chart on section 8 here shows that WN most recently had the 3rd highest operating margin and paid the highest for jet fuel.
http://marketrealist.com/2014/07/low-cost-carriers-competitive-advantage-challenged-by-fuel-costs/
WN still making record profits despite paying more for fuel.WorldTraveler said:
I can remember when many naysayers claimed that SWA would not be able to compete if it were not for their fuel hedges.
No bag fees, highest price for fuel, highest paid employees, not running to bankruptcy court to dump debt and lower employee pay, AND still record profits?
Hmmmm, must be doing something right.
WorldTraveler
Corn Field
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no one said that WN couldn't make record profits... but they do have the highest paid employees and have paid the most for fuel but....
their margins HAVE BEEN BEAT by legacy carriers.
by the way, how about you admit that WN had lower costs that they used against the legacy carriers because of the same US government that created both deregulation and Chapter 11 bankruptcy?
The legacy carriers were the ones who were under pressure from the low fare carriers for many years; the pendulum has swung.
Right now, the legacy carriers are competing very effectively with low fare carriers.
their margins HAVE BEEN BEAT by legacy carriers.
by the way, how about you admit that WN had lower costs that they used against the legacy carriers because of the same US government that created both deregulation and Chapter 11 bankruptcy?
The legacy carriers were the ones who were under pressure from the low fare carriers for many years; the pendulum has swung.
Right now, the legacy carriers are competing very effectively with low fare carriers.
Deregulation was 35 years ago.WorldTraveler said:
The legacies went bankrupt this decade and SWA record profits are this year.
Your claim that the government is responsible for WN record profits, doesn't hold water.
Next you will be claiming that the reason for SWA success was hot pants.
Oh I forgot, you already said that in another thread.
WorldTraveler
Corn Field
- Dec 5, 2003
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no, I did not say that the gov't is responsible for WN record profits.
I said that deregulation allowed the low cost carriers to enter the market using costs that were well below the legacy carriers.
Would you like to deny that in 1995, well before 9/11, UA's average salary was $52K while WN's was $35.5K but by 2013, WN was at $92K while UA was at $70K?
WN enjoyed years of having costs well below average, WN's unions were able to push huge pay raises thru, and the company was able to generate the revenue to pay for those increases.
Now, WN is in the position where its labor costs are well below the legacy carriers - a complete reverse of what existed even before 9/11 - less than 15 years ago and before any of the existing network carriers entered BK - and WN cannot continue to cough up the pay raises that you once gained.
WN can move into the int'l market to try to gain revenue but the pay raises that WN employees once got aren't going to come anymore.
The legacy carriers are recording record profits as well. You might do well to keep that perspective in mind over the next few days as earnings reports come in.
and, no, I did not say that WN's success was due to hot pants.
I said that deregulation allowed the low cost carriers to enter the market using costs that were well below the legacy carriers.
Would you like to deny that in 1995, well before 9/11, UA's average salary was $52K while WN's was $35.5K but by 2013, WN was at $92K while UA was at $70K?
WN enjoyed years of having costs well below average, WN's unions were able to push huge pay raises thru, and the company was able to generate the revenue to pay for those increases.
Now, WN is in the position where its labor costs are well below the legacy carriers - a complete reverse of what existed even before 9/11 - less than 15 years ago and before any of the existing network carriers entered BK - and WN cannot continue to cough up the pay raises that you once gained.
WN can move into the int'l market to try to gain revenue but the pay raises that WN employees once got aren't going to come anymore.
The legacy carriers are recording record profits as well. You might do well to keep that perspective in mind over the next few days as earnings reports come in.
and, no, I did not say that WN's success was due to hot pants.
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