Southwest Financials

southwest Financials southwesterly Airlines is the only airliner in the application that has been qualified to ope stray at marginal profit year afterwards year. Growth Their business model has given them a 5-year growth rate of 10.34%. That is higher than the industry average of 8.19%. Income In 2006, Southwest had the highest web income in the industry at $499 million. Others in the industry prevail year, like American Airlines, had a net income of $231 million; Continental brought in $369 million and Southwests direct low-cost mailman competitor Jet Blue struggled to even make whatsoever profit last year with -$1 million of profit. make up per seat-mile Southwests cost reducing schema has made them the more or less efficient airliner in the industry. The cost per seat mile is the ecumenical pricing measurement used by commercial airlines to bump efficiency and operating costs per available seat mile. Southwest has the lowest costs in the industry at 6.38 cents per seat-mile in 2006. Comp ared to others in 2006 like Jet Blue at 8.19 cents, limit at 8.68 cents, Delta at 11.3 cents, and United at 13.3 cents per seat-mile.

Fuel Hedging Southwests fuel hedging strategy is a key flat coat why they fork over maintained profitability, compared to its competitors that have had record losses because of rising fuel costs. Southwest purchases fuel options for years in advance which lock onto rates that expire at change dates. For example, last year about 68% of the fuel purchased by Southwest last year was bought at 2003 prices. As of 2005, they are paying 50% of the market price for their fuel. They have mixed rates locked in place through 2009. The only close why Southwest was able to even begin this strategy is because they had the cash in the first place. Other airliners in the industry have been struggling to keep afloat with bankruptcies, huge debt, and salutary barely able to stay profitable, yet alone have the cash to invest in anything. Because of hedges, Southwest stayed... If you want to ask a full essay, order it on our website: Ordercustompaper.com

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