Southwest Airlines Reports Record Profits Last Quarter

Southwest Airlines Reports Record Profits Last Quarter

Southwest Airlines, the only major U.S. airline to be profitable every year since 1973, this week reported record profits for its fourth quarter and full year of 2000, as well as record traffic and load factors for the quarter and year.

Southwest carried a record number of passengers in 2000, a total of 47.4 million customers, up 1.6 percent from 46.7 million in 1999. Passenger revenue miles increased by 6.0 percent from 25.0 billion to 26.5 billion, and available seat miles increased by 1.6 percent from 33.1 billion to 33.6 billion for the same period last year. The airline’s load factor for the year was 79 percent, up 4 percentage points from 75 percent in 1999, and a record for Southwest Airlines.

The carrier’s Board of Directors also declared a 25-percent increase in its quarterly dividend, from four cents per share to five cents per share on all outstanding shares of common stock payable March 15, 2001 to shareholders of record at the close of business on March 1, 2001.”This is an exciting time for Southwest Airlines,” said Gary C. Kelly, Southwest’s President and Chief Operating Officer.”We are incredibly proud that this is our

Southwest Airlines Reports Record Profits Last Quarter

Southwest Airlines announced record profits for the fourth quarter of 2010, up 89% from 2009. The results are even more impressive compared to 2008’s fourth quarter, when the airline lost $120 million dollars.

CEO Gary Kelly attributes the turnaround to strong air travel demand and lower fuel costs. “I can’t think of a better way to end the year,” said Kelly. “We’ve been closing the gap on our competition and this is proof that we can compete with anyone.”

While Southwest’s success is good news for customers, it is also good news for their employees. Southwest workers have had their wages frozen since the beginning of 2009. But in light of these strong financial results, analysts are predicting that workers will soon receive pay increases.

Southwest Airlines Reports Record Profits Last Quarter

Southwest Airlines has been able to ride out the economic downturn better than most of its competitors. The company reported record earnings for the last quarter, and has seen a nearly 50% increase in share price over the last three years. Southwest’s success is based on a low-cost model that focuses on providing customers with “no-frills” flights at a low cost. The company has avoided many of the problems that have plagued other major carriers, such as expensive union contracts and bad management decisions. Southwest also benefits from being based in Texas, which unlike many other states has not been particularly hard hit by the recession.

Southwest Airlines, which was not long ago the darling of the airline industry, has been having a tough time of it lately. The carrier had been struggling with a failing booking system and bad weather while trying to get out of a contract that it had signed with fuel providers at a time when oil prices were high.

The airline announced this morning that last quarter’s profits had fallen by more than half compared to the same period last year. In a statement, Southwest said that part of the drop in profits was due to higher labor costs, while another part was due to lower revenue from fuel surcharges. The airline also said that it is continuing to experience delays as it works to fix its booking system, which has been down since Tuesday.

Southwest Airlines Co. reported a record first quarter profit Thursday, crediting lower fuel costs and higher fares for the performance that beat Wall Street expectations.

The airline said it earned $383 million, or 50 cents per share, in the January-March period. That’s up from $224 million, or 28 cents per share, in the first three months of last year.

Analysts surveyed by FactSet expected earnings of 45 cents per share.

Revenue rose 6 percent to $4.63 billion from $4.36 billion, in line with analyst projections. Analysts expected revenue of $4.63 billion.

Southwest’s average fare rose 3 percent to $157.52 as it filled more seats on each flight and cut back on discounts. It flew 1 percent more seats than a year ago while its costs fell 5 percent because of lower fuel prices and fewer expensive last-minute bookings on business routes.

The airline raised its full-year outlook for the second time this year, expecting net income excluding special items of between $1.15 and $1.30 per share compared with its previous forecast range of $1 to $1.20 per share. Analysts predicted earnings of $1.23 per share for the year, according

Southwest Airlines today announced a record profit for its fourth quarter, reporting net income of $71 million, up from $58 million in the same period last year. Analysts had expected a much smaller number, but were surprised by the airline’s strong performance which is being driven by its new international routes and an increasing load factor.

The airline’s new international strategy appears to be paying off handsomely. In December it inaugurated its first ever flight to Europe with a service from Orlando to London Gatwick. The flights are operated three times per day and have been attracting loads as high as 98%. The airline also operates flights to Mexico City, San Jose and Liberia in Costa Rica.

The company was not able to report any growth in domestic traffic due to the ongoing economic slowdown but says that profits were boosted by cost cutting measures. The airline has been trying to reduce fuel costs by flying more direct routes and using lighter cabin crew uniforms made from a new material called “Ultra-Fiber”. This fabric is said to be 65% lighter than regular cotton and reduces drag on the crew members.

In April, Southwest Airlines announced its first quarter profits, reporting a net income of $608 million. This was the company’s best quarter in its 47-year history. In fact, Southwest also reported its best year in operation, with over $2 billion in net income.

The report comes as good news for the airline industry as a whole. While airlines like United and Delta have been posting quarterly losses, Southwest has managed to stay afloat by keeping costs low. Southwest did this by its no frills approach to flying: it doesn’t offer meals or entertainment, and only flies one type of plane: the Boeing 737.

Southwest also keeps costs low by keeping ticket prices low. The average base fare on a Southwest flight is $132 — about half of what Delta charges for the same route. And while other airlines are charging for checked bags and seat assignments, Southwest offers this for free. This strategy has made Southwest very popular with customers who are looking for cheap flights; however, analysts say that this strategy has started to hurt the airline’s profit margins since fuel prices have started to rise again recently.

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