Southwest Air Again Beats Larger Rivals

Fox News ^ | 10/20/03 | Unknown (Reuters)

[Coop]

Southwest Airlines Inc. (LUV), the discount airfare pioneer, Monday reported quarterly profit rose 41 percent, outperforming larger and older rivals as traffic improved for the U.S. airline industry.

By earning more than $100 million, Southwest's performance is a standout in the industry, which is only beginning to emerge from its worst financial crisis ever. Since the Sept. 11, 2001, hijacker attacks, billions of dollars in losses have piled up for most major U.S. carriers, with the exception of No. 6 U.S. carrier.

[Coop]

Obviously Southwest once again deserves kudos, but it's nice to see the airline industry having some better times. More proof, in my view, that the economy is improving. When business is better, there's more business travellers, which is where the airlines make their money.

[Coop]

I won't start another thread for this piece of economic news (also from today's Fox News website):

Citigroup Inc. (C), the world's largest financial services company, Monday said third-quarter profit rose 20 percent to a record, helped by higher investment banking, retail banking and credit card revenue, and fewer loan defaults.

[So Cal Rocket]

Hopefully, more airlines will copy SW's business model...

When I travel from Los Angeles to Orlando, I DON'T want to spend a couple hours in St. Louis along the way.

Point-to-point is the most customer-friendly way to move people... are you listening all you Hub-and-Spoke airlines?

[Coop]

I can't often make this claim, but buying Southwest's stock in the week after 9/11 proved to be a smart move on our part.

[inPhase]

Southwest has the best business plan, internet accessibility, and freebies. Free tickets are complete open tickets, any time a seat is open, different departing and destination allowed. All tickets require nothing (maybe a tax) to change (unless it is more expensive ticket to begin with you pay the diff.)

If all airlines would only adopt their biz plan.

Their companion pass if you earn one, allows a companion to fly free with you even when you are fying a free ticket!

[California74]

Not only is Southwest a great airline to fly on (economical, friendly service, etc.), but it's a great airline to work FOR! My dad worked for Southwest and it was the best job he ever had. He loved his co-workers and his job as a ramp agent. Not to mention the great benefits and perks of getting to fly free! He went to Vegas at least once a month! Sadly, he passed away last October. Herb Kelleher sent us flowers and a very nice note. My mom still has a pass that she can fly on Southwest anywhere for free.

[Coop]

Southwest was one of the business models we studied years ago in college.

[LS]

I don't get it: despite profits and their well-known efficiency, I held stock in SW for years and it never did anything. Finally, I sold.

[WoofDog123]

"All tickets require nothing (maybe a tax) to change "

The $100 standard for change fees now is very offensive, to say the least, with Old Air...

[Coop]

Obviously my "ownership" in the company has turned things around. :-)

[Moonman62]

Southwest was one of the business models we studied years ago in college.

Successful business strategy is often like successful military strategy: go after the areas of least resistance first. SW also did well in hiring people with good attitudes.

[LibertyAndJusticeForAll]

The article mentions the box cutters in passing, but not that they were on SouthWest planes for 5 Weeks.

Box Cutters on Planes 5 Weeks, FBI Says
http://apnews.myway.com/article/20031020/D7UA16TO0.html

[LS]

Curious, how much has the stock gone up since you bought?

[Coop]

Lessee. We bought at $12.75 and today it's at $19. So almost 50% in two years.

[LS]

Oh. Well, that's the problem I bought at about $26 and it didn't move. So I sold at about $26. America West, on the other hand, I bought while it was in bankruptcy at $1, it came out of bankruptcy, split 3:1, then went up to about $22 and I sold thereabouts.

[Coop]

I tried the same thing (penny stock) with Kmart, but when it came out of bankruptcy they zeroed the stock. But I knew it was risky going in. Good for you on AmWest!

[leadpenny]

I wonder how Jet Blue is doing?

. . . and Hooters Air?

[Central Scrutiniser]

Yeah, but the government loan to America West has paid off, they could cash in right now for a nearly 200 million dollar profit!

The smaller, better run carriers made a profit this quarter, AWA, ATA and Alaska all had nice profits, as did Continental and NW, Usair lost a ton, as will United and American. Expect a real nice one by Jet Blue.

[Coop]

Usair lost a ton, as will United and American.

Nope. AMR (American) actually reported a profit of about $1 million. Adjusted for a special charge it lost about $27 million. Still a drop in the bucket compared to what had been occurring.

[Central Scrutiniser]

Yeah, I spoke about 2 hours too soon!

Air Tran had a good report too, 9th straight. They are doing quite well with the 717.