Southwest Airlines is expected to report a slim 1Q2011 profit earnings before the market opens on 21-Apr-2011 (AP, 19-Apr-2011). While traffic has been high on Southwest, the carrier has been hit by rising jet fuel prices which CEO Gary Kelly states could increase the company’s costs by USD1 billion. Southwest has also been dealing with bad publicity after one of its older jets sprung a 5ft hole in its roof. During 1Q2011, Southwest shares fell 2.7% which is slightly less than United Continental and much less than Delta Air Lines and American Airlines.
Southwest Airlines expects slim 1Q2011 profit
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Spirit Airlines’ top priorities for 2016 are: improving its dismal operations after regularly underperforming the industry, and engendering a more positive relationship with its customers. The results so far are relative. Its on-time performance and customer complaint ratios have improved, yet Spirit's ranking remains near the bottom among airlines whose operational metrics are tracked by the US government. Nevertheless, Spirit is pleased with its progress so far.
Spirit acknowledges its operational performance will never rise to the level of some of the top performers in the US; but it believes that the progress it has made during the country’s busy summer high season will continue into autumn 2016, and the improvement will bolster its ULCC model over the long term.
Spirit’s unit revenue performance during the past year has shown that the ULCC model is not immune from the industry yield pressure that has stubbornly hovered over the US domestic revenue environment during that time. While the market place does remain competitive, Spirit is starting to see encouraging signs of capacity restraint among higher-cost airlines.
Delta vs jetBlue: Delta's push from Boston as jetBlue mounts a Mint attack from that key base
During the last three years Delta Air Lines has been steadily expanding at Boston Logan International airport – a strategic focus city for jetBlue Airways that serves as its second largest base. Delta’s latest additions from Boston include a mix of business and leisure markets, including the highly competitive route to San Francisco.
As Boston’s largest airline, jetBlue works towards its goal of 150 daily departures from the airport, Delta has declared that it will reach 90 daily peak day departures from the airport by Jun-2017. Delta is also touting its level of first class cabin offerings from Boston as jetBlue expands its Mint premium product on routes from the airport. However, Delta’s first class offerings do not feature the same flatbed experience as Mint offers.
Delta has hinted at further expansion from jetBlue’s Boston stronghold. The scope of Delta’s plans for the airport remains unknown, but lucrative corporate markets and leisure routes with little competition appear to be Delta’s preference for the foreseeable future. Boston is not likely to become a huge battleground, but Delta aims to grow its presence in the market for the benefit of itself and its joint venture partners.