He's got the spiel going again. It's this and it's that, Southwest earnings are flatlined AGAIN, just like every other quarter for the last 5 years. Terrific CEO....strives for complete and total mediocrity. GooseEgg results are actually pretty darn good, you go Gary...it's worked brilliantly for you so far.
LUV has serious operational problems. Kelly is simply not up to the task. He keeps trying to push this "Southwest Happy Brand" crap and has ignored basic business practice. To not be charging bags fees is absolutely stupid....even charging $5 per bag would result in near doubling operating income with no added expense. ( Southwest flew 100 million passengers in 2011 - $5 x 100 million = $500 million...2011 operating income was $700 million !!! How about $10/bag - half of what all the other carriers charge. Southwest is no longer the "Lil Airline that Could" as Kelly sees it. It is a large trunk airline in a fight for its life against leaner, meaner ,and lower cost, bankruptcy built businesses.
They should charge for carry-ons also. The passenger compartments are taking on the attributes of a luggage car with all the baggage fee avoidance going on. Charge for purses, if a Child takes on a stuffed animal...weigh the thing and charge for that. Charge for EVERYTHING...get that bottomline UP!
fuel costs went up 200 million and merger costs were there too, yet GK handled it and managed to get a decent first quarter anyway. I've noticed that people who really want to complain can always find an excuse to do it
When you're running an airline at an operational loss, while taking profit on oil futures, it really makes a person wonder what you're really invested in. Is an airline investment really a short-sale on Oil?