slushie
Still here.
http://news.airwise.com/story/view/1153313077.html
July 19, 2006
US discount carrier Southwest Airlines on Wednesday said second-quarter earnings more than doubled as it overcame rising jet fuel costs with higher fares and aggressive hedging.
Southwest said net profit rose to USD$333 million from USD$144 million in the same period a year earlier.
Operating revenue increased about 26 percent to USD$2.45 billion from USD$1.94 billion.
"We generated higher recent yields to offset significantly higher jet fuel prices," Southwest Chief Executive Gary Kelly said in a statement.
The company has responded to rising jet fuel prices with higher fares, which have also given rivals room to raise their fares and improved the outlook for the struggling airline industry.
Kelly said the company remains committed to low fares despite recent price increases.
Earnings were boosted by gains from Southwest's jet fuel hedging program, which has allowed the airline to secure fuel at favorable rates. Southwest said the program generated a cash benefit of USD$225 million in the quarter.
The airline, which said it is 73 percent hedged for the remainder of 2006 at about USD$36 a barrel, expects its fuel costs to be higher than the second-quarter rate of USD$1.42 a gallon and substantially higher than the 95 cents a gallon paid in the third quarter last year. Jet fuel currently costs over USD$2.20 a gallon.
The expiration of some hedging contracts is exposing the airline to higher costs. Its hedging cover falls to USD65 percent in 2007, 38 percent in 2008, and 34 percent in 2009. The rates at which it is hedged also becomes less attractive in the coming years.
"While we cannot control the price of energy, we have insured ourselves with years of price protection that will allow us time to make the necessary changes," Kelly said.
In the short term, the trends appear positive. The company said that third-quarter bookings are "strong" and the increase in operating costs, excluding fuel, should be less than the 4.9 percent rise in the second quarter.
Given current trends, Kelly said the company should "easily exceed" its goal of increasing earnings by 15 percent for full-year 2006.
(Reuters)
July 19, 2006
US discount carrier Southwest Airlines on Wednesday said second-quarter earnings more than doubled as it overcame rising jet fuel costs with higher fares and aggressive hedging.
Southwest said net profit rose to USD$333 million from USD$144 million in the same period a year earlier.
Operating revenue increased about 26 percent to USD$2.45 billion from USD$1.94 billion.
"We generated higher recent yields to offset significantly higher jet fuel prices," Southwest Chief Executive Gary Kelly said in a statement.
The company has responded to rising jet fuel prices with higher fares, which have also given rivals room to raise their fares and improved the outlook for the struggling airline industry.
Kelly said the company remains committed to low fares despite recent price increases.
Earnings were boosted by gains from Southwest's jet fuel hedging program, which has allowed the airline to secure fuel at favorable rates. Southwest said the program generated a cash benefit of USD$225 million in the quarter.
The airline, which said it is 73 percent hedged for the remainder of 2006 at about USD$36 a barrel, expects its fuel costs to be higher than the second-quarter rate of USD$1.42 a gallon and substantially higher than the 95 cents a gallon paid in the third quarter last year. Jet fuel currently costs over USD$2.20 a gallon.
The expiration of some hedging contracts is exposing the airline to higher costs. Its hedging cover falls to USD65 percent in 2007, 38 percent in 2008, and 34 percent in 2009. The rates at which it is hedged also becomes less attractive in the coming years.
"While we cannot control the price of energy, we have insured ourselves with years of price protection that will allow us time to make the necessary changes," Kelly said.
In the short term, the trends appear positive. The company said that third-quarter bookings are "strong" and the increase in operating costs, excluding fuel, should be less than the 4.9 percent rise in the second quarter.
Given current trends, Kelly said the company should "easily exceed" its goal of increasing earnings by 15 percent for full-year 2006.
(Reuters)
.... proof that texas owns again....AA hasn't filed for bk so shaddup 
