Southwest Airlines drops a dime — it is a recession

If Southwest, which has long boasted of its profitability when compared to “legacy airlines,” is losing money, we’re in a recession.

And, that’s not just hyperbole. The last time Southwest posted a quarterly loss was at the start of the Bush I recession.

That said, if you throw out special accounting charges, the airline still turned a profit.

At the same time, the road ahead may be less than turbulence-free. Wild swings in oil prices may undercut much of the vaunted fuel hedging advantage Southwest has enjoyed in the past.