Southwest Post Losses; We are in Trouble
By TheWild1 at 17 October, 2008, 12:01 am, Categories : Financial Markets
Yesterday Southwest Airlines (LUV) posted its first quartely loss in 17 years. Seems kind of odd that through everything that has happened in the last couple of years, why now?
So Southwest didn’t post any losses around September 11, 2001? When everybody was afraid to fly, and airlines everywhere were losing money by the truck loads.
Apparently Southwest Airlines kryptonite turns out to be oil. If it wasn’t for the extreme high price of gas, then Southwest says it would have posted a net profit of $69 million. Instead, the 44.4% higher fuel cost per gallon caused a $120 million loss. Seem like unusually large turnover to me.
Hey, Southwest maybe if you joined the other airlines and charged per bag, perhaps you could of dwindled that some of that loss down. Just a suggestion.
As the price of oil has dropped off dramatically over the last couple of months, it will be interesting to see how Southwest carries over into the coming quarters.
You know what they say, “Once you post a loss, you never go back.”
INO - Check out a FREE trend analysis of Southwest Airlines
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