Southwest Airlines Co. (LUV, Financial) filed Annual Report for the period ended 2010-12-31.
Southwest Airlines Co. has a market cap of $9.14 billion; its shares were traded at around $12.02 with a P/E ratio of 16.5 and P/S ratio of 0.8. The dividend yield of Southwest Airlines Co. stocks is 0.1%. Southwest Airlines Co. had an annual average earning growth of 1.4% over the past 10 years.Hedge Fund Gurus that owns LUV: Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns LUV: Ken Heebner of Capital Growth Management LP, PRIMECAP Management, Jeremy Grantham of GMO LLC, Pioneer Investments.
The Company has historically entered into fuel derivative contracts to manage rising fuel costs; however, because energy prices can fluctuate significantly in a relatively short amount of time, the Company must also continually monitor and adjust its fuel hedge portfolio and strategies to address fuel price volatility. For example, during 2008, market spot prices for crude oil peaked at a high of over $147 per barrel and hit a low price of under $35 per barrel both within a period of approximately five months. This led to the Companys decision in late 2008 and early 2009 to significantly reduce its net fuel hedge position in place for 2009 through 2013. As a result of these activities, the Company effectively locked in some hedging-related losses for 2009 through 2013. Since early 2009, the Company has continued to adjust its fuel hedge portfolio in an attempt to economically layer back in some protection in the event of a significant surge in market prices. Fuel costs continued to be volatile during 2010, with market spot prices ranging from a low of $68 per barrel to a high of $91 per barrel. Therefore, the Company continues to actively manage its fuel hedge portfolio to address volatile fuel prices and, in particular, to mitigate the impact of significant increases in energy prices, while maintaining an objective to manage derivative premium costs. The Companys fuel hedging activities are discussed in more detail below under Risk Factors, Managements Discussion and Analysis of Financial Condition and Results of Operations, and Note 10 to the Consolidated Financial Statements.
Business Select. As discussed above, the Companys Business Select product includes perks such as priority boarding, bonus frequent flyer credit, priority security access in select airports, and one complimentary adult beverage. The Companys Business Select program contributed approximately $88 million in revenue premiums during 2010, up from $72 million in revenues during 2009.
and dogs into the aircraft cabin for a $75 one-way fare. During 2010, the Company also increased its service charge for Customers who travel as an unaccompanied minor from $25 to $50 one-way to address the costs to the Company related to the administrative work and extra care necessary to safely transport these Customers. The Companys 2010 revenues from EarlyBird Check-in, PAWS, and unaccompanied minor services charges were $119 million, an increase of $95 million from 2009.
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Southwest Airlines Co. has a market cap of $9.14 billion; its shares were traded at around $12.02 with a P/E ratio of 16.5 and P/S ratio of 0.8. The dividend yield of Southwest Airlines Co. stocks is 0.1%. Southwest Airlines Co. had an annual average earning growth of 1.4% over the past 10 years.Hedge Fund Gurus that owns LUV: Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns LUV: Ken Heebner of Capital Growth Management LP, PRIMECAP Management, Jeremy Grantham of GMO LLC, Pioneer Investments.
Highlight of Business Operations:
On September 26, 2010, the Company entered into a merger agreement providing for the Companys acquisition of AirTran Holdings, Inc. (AirTran). Closing of the transaction is subject to the approval of AirTran stockholders, receipt of Department of Justice (DOJ) and certain other regulatory clearances, and fulfillment of customary closing conditions. If the merger is completed, each outstanding share of AirTran common stock will be converted into the right to receive 0.321 shares of Southwest common stock and $3.75 in cash, without interest. The number of shares of Southwest common stock and, under some circumstances, the cash consideration to be received is subject to adjustment based on the Companys share price prior to closing. This adjustment mechanism will provide at least $7.25 in value and up to $7.75 in value (based on the Companys share price prior to closing) per share of AirTran common stock. See Note 2 to the Consolidated Financial Statements for further information regarding the merger, the merger agreement, and the exchange ratio adjustment mechanism.The Company has historically entered into fuel derivative contracts to manage rising fuel costs; however, because energy prices can fluctuate significantly in a relatively short amount of time, the Company must also continually monitor and adjust its fuel hedge portfolio and strategies to address fuel price volatility. For example, during 2008, market spot prices for crude oil peaked at a high of over $147 per barrel and hit a low price of under $35 per barrel both within a period of approximately five months. This led to the Companys decision in late 2008 and early 2009 to significantly reduce its net fuel hedge position in place for 2009 through 2013. As a result of these activities, the Company effectively locked in some hedging-related losses for 2009 through 2013. Since early 2009, the Company has continued to adjust its fuel hedge portfolio in an attempt to economically layer back in some protection in the event of a significant surge in market prices. Fuel costs continued to be volatile during 2010, with market spot prices ranging from a low of $68 per barrel to a high of $91 per barrel. Therefore, the Company continues to actively manage its fuel hedge portfolio to address volatile fuel prices and, in particular, to mitigate the impact of significant increases in energy prices, while maintaining an objective to manage derivative premium costs. The Companys fuel hedging activities are discussed in more detail below under Risk Factors, Managements Discussion and Analysis of Financial Condition and Results of Operations, and Note 10 to the Consolidated Financial Statements.
Business Select. As discussed above, the Companys Business Select product includes perks such as priority boarding, bonus frequent flyer credit, priority security access in select airports, and one complimentary adult beverage. The Companys Business Select program contributed approximately $88 million in revenue premiums during 2010, up from $72 million in revenues during 2009.
and dogs into the aircraft cabin for a $75 one-way fare. During 2010, the Company also increased its service charge for Customers who travel as an unaccompanied minor from $25 to $50 one-way to address the costs to the Company related to the administrative work and extra care necessary to safely transport these Customers. The Companys 2010 revenues from EarlyBird Check-in, PAWS, and unaccompanied minor services charges were $119 million, an increase of $95 million from 2009.
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