Southwest Airlines' 3Q2010 profits soar, outlook 'healthy'

Southwest Airlines revenue up 20% - financial/traffic highlights for the three months ended 30-Sep-2010:

• Revenue: USD3,192 million, +19.7% year-on-year;
• Operating costs: USD2,837 million, +7.3%;
  • Labour: USD938 million, +3.2%;
  • Fuel: USD926 million, +12.1%;
• Operating profit: USD355 million, +1,514%;
• Net profit: USD205 million, compared to a loss of USD16 million in p-c-p;
• Total assets: USD15,143 million, +6.1% when compared to period ended 31-Dec-2009;
• Cash and cash equivalents: USD1,031 million, -7.5% when compared to period ended 31-Dec-2009;
• Total liabilities: USD9,193 million, +4.3% when compared to period ended 31-Dec-2009;
• Revenue passengers: 22.9 million, +2.3%;
• Enplaned passengers: 27.8 million, +5.4%;
• Load factor: 80.9%, +1.3 ppt;
• Average sector length: 904 miles, +2.6%;
• Average fares: USD132.53, +16.3%;
• Passenger yield; USD 14.67 cents, +13.4%;
• Revenue per ASM: USD 12.49 cents, +16.1%;
• Passenger revenue per ASM: USD 11.86 cents, +15.3%;
• Cost per ASM: USD 10.97 cents, +7.1%;
• Cost per ASM excl fuel: USD 7.47 cents, +5.1%. [more]

Southwest: "Our outlook for October is excellent, based on traffic and revenue trends, thus far. We are encouraged by the sustained momentum, especially in what is typically a seasonally weaker travel period. Assuming traffic and revenue trends continue, we expect a solid unit revenue improvement in fourth quarter 2010, even with more difficult year-over-year comparisons. Our profit outlook for this year is healthy, with a steadfast focus on growing revenues to offset cost inflation and adjust to higher energy prices. Our liquidity and balance sheet remain strong. As a result, we believe we are well prepared for the AirTran transaction and believe it will generate very handsome returns, based on the expected synergies and profits," Gary Kelly, Chairman, CEO and President. Source: Southwest, 21-Oct-2010.