Southwest Airlines (LUV)

Find the quarterly net income data for the past five years (you can locate this information from the Investors Relations section on the Southwest Airlines website or from any other reliable source to obtain these financials). Be sure to site the source of your data.

Use the quarterly data to do the following:

a. Collect and copy the data from Q3 2012 through Q2 2017 into Excel. Graph the data. Label axes appropriately.

b. Calculate seasonal indexes for each quarter

c. Run a trendline through the plot of the data.

d. Use the trendline and the seasonal indexes to make forecasts for the next four quarters (Q3 2017 – Q2 2018). Use whatever forecast method on the de-seasonalized data that you believe to be the best fit.

e. Describe the seasonality of Southwest’s income – eg. Are there quarters that experience peaks or declines in net income? If so, explain why you think that these patterns are occurring.

Do your work in Excel but copy all relevant tables and results in to Word.

Your Word document should include a coversheet, and answers to all questions. Embed Excel graphs and tables into the Word document. You must also submit the Excel spreadsheet as an appendix so I can view your calcualtions.