Originally Posted by REF 5

BJ has already said they are working with Boeing to reshuffle the order book. Code words for "we'll move those orders to a later date". Capacity has already been reduced for the second half of the year. Canceling is outright giving up the slots which I don't think SWA has ever done. SWA isn't the only airline that is doing this. Every other carrier has and will reduce capacity for the 3rd and 4th quarter. Some airlines already deferred some orders. Although SWA has somewhat of a capacity problem, it's real problem is on the revenue side of the equation. Bottom line is before Elliott decided to take a stake in SWA, BJ had already slowed and then stopped growth anyway. ASM growth will be in the low single digits for a long time. Unlike most other carriers, SWA will not fund growth through debt. If cap ex can't be paid through cash flow, it will use what assets it currently has to increase ASM's. Most other airlines have had healthy cash flows to fund Cap ex, SWA not so much. Remember, SWA has about 3 Billion in debt maturites coming due in 2025. I think part of that is owned by Elliott, which can convert it to shares.

Originally Posted by Mozam

Stop quoting the angry FA. She/it is ruining this board .

Originally Posted by REF 5

BJ has already said they are working with Boeing to reshuffle the order book. Code words for "we'll move those orders to a later date". Capacity has already been reduced for the second half of the year. Canceling is outright giving up the slots which I don't think SWA has ever done. SWA isn't the only airline that is doing this. Every other carrier has and will reduce capacity for the 3rd and 4th quarter. Some airlines already deferred some orders. Although SWA has somewhat of a capacity problem, it's real problem is on the revenue side of the equation. Bottom line is before Elliott decided to take a stake in SWA, BJ had already slowed and then stopped growth anyway. ASM growth will be in the low single digits for a long time. Unlike most other carriers, SWA will not fund growth through debt. If cap ex can't be paid through cash flow, it will use what assets it currently has to increase ASM's. Most other airlines have had healthy cash flows to fund Cap ex, SWA not so much. Remember, SWA has about 3 Billion in debt maturites coming due in 2025. I think part of that is owned by Elliott, which can convert it to shares.

Originally Posted by hoover

in a podcast in July they said sw was going slightly into debt to buy the planes and now that the delivery rate has slowed sw is no longer burning cash to buy planes and that's a good thing. Also they said SW is the only airline not going into debt to buy planes. Everyone else is.

Originally Posted by FA24

https://seekingalpha.com/news/414370...pArticle=false

Activist investor Elliott Investment Management plans to meet with Southwest Airlines (NYSE:LUV) on Sept. 9.

"It is time for a reconstituted Board to finally step up and put in place a transparent and credible process for addressing the challenges Southwest faces today," Elliott partner John Pike and portfolio manager Bobby Xu wrote in a letter to shareholders

The latest Elliott comments come after the activist earlier this month said it plans to nominate 10 director candidates for the airline's 15-person board.

Elliott in June confirmed that it had a $2 billion stake in Southwest (LUV) and the activist pushed for the airline to do a business review and believes the airline stock can reach $49 a share. Elliott called for new leadership, including the company's CEO Bob Jordan and Chairman Gary Kelly.

"We are hopeful that we will find individuals on the Board willing to look past the personal interests of Mr. Jordan and Mr. Kelly in favor of what is best for Southwest and its many other constituents," the Elliott executives said in the letter on Monday.

Originally Posted by 9thAmendment

I’m thinking that this is going to be a rare time that Elliott is unsuccessful. SWA has already announced premium/assigned seating and they are starting redeyes. There is a very high likelihood that a codeshare of some sort will be announced next month.

What more could new leadership do to generate meaningful revenue other than that? GK has dedicated his career to pleasing Wall Street. I don’t see the majority of investors kicking him to the curb when he is in the process of implementing pretty much all the changes an airline like SWA can reasonably make.