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Non-Tech : Southwest Airlines (LUV))
LUV 32.46+3.0%3:59 PM EST

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To: Mark Streich who wrote (124)1/23/1997 10:16:00 PM
From: Bryan Arnold   of 299
 
Mark,

If you read the press release, then it does not sound like the 1st Quarter is going to be any better. They stated in the release that they averaged .72 cents for a gallon of gas but now it up to .78 cents per gallon of gas. If that is the case then I would expect that the 1st Quarter could be another rough one if oil prices don't drop during Feb. or March.

Another item, An analyst talked about how they thrive in a weak economy and that since the economy has remained strong, other airlines are closing the gap. Also, Southwest is going to longer routes but using the same pricing structure as short routes, which is starting to eat into profit margins.

Not too good if you ask me.

Bryan
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