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Southwest Airlines reports double-digit profit declines on soaring fuel costs

20-Jan-2012 1:25 PM

Southwest Airlines revenue up 32% - financial highlights:

  • Three months ended 31-Dec-2011:
    • Operating revenue: USD4108 million, +31.9% year-on-year;
      • Southwest: USD3401 million;
      • AirTran: USD705 million;
    • Operating costs: USD3961 million, +36.7%;
      • Fuel: USD1494 million, +58.9%;
      • Labour: USD1145 million, +19.9%;
    • Operating profit: USD147 million, -31.9%;
    • Net profit: USD152 million, +16.0%;
    • Revenue passengers: 27.5 million, +22.6%;
    • Load factor: 80.5%, -0.2 ppt;
    • Average passenger fare: USD140.18, +6.9%;
    • Passenger yield per RPM: USD 15.33 cents, +4.1%;
    • Revenue per ASM: USD 13.13 cents, +4.5%;
    • Passenger revenue per ASM: USD 12.33 cents, +3.8%;
    • Cost per ASM: USD 12.66 cents, +8.3%;
    • Cost per ASM excl fuel: USD 7.89 cents, -0.1%;
  • 12 months ended 31-Dec-2011:
    • Operating revenue: USD15,658 million, +29.4%;
    • Operating costs: USD14,965 million, +34.6%;
      • Fuel: USD5644 million, +55.9%;
      • Labour: USD4371 million, +18.0%;
    • Operating profit: USD693 million, -29.9%;
    • Net profit: USD178 million, -61.2%;
    • Revenue passengers: 110.2 million, +2.4%;
    • Load factor: 80.8%, +1.1 ppt;
    • Average passenger fare: USD141.14, +10.6%;
    • Passenger yield per RPM: USD 14.97 cents, +6.4%;
    • Revenue per ASM: USD 12.91 cents, +7.4%;
    • Passenger revenue per ASM: USD 12.10 cents, +7.9%;
    • Cost per ASM: USD 12.40 cents, +11.8%’
    • Cost per ASM excl fuel: USD 7.73 cents, +3.6%;
    • Total assets: USD18,068 million, +16.8% when compared to period ended 31-Dec-2011;
    • Cash and cash equivalents: USD829 million, -34.3% when compared to period ended 31-Dec-2011;
    • Total liabilities: USD11,191 million, +21.3% when compared to period ended 31-Dec-2011. [more – original PR]

Southwest: “Based on current traffic and booking trends, we expect another strong passenger revenue performance in first quarter of 2012. Based on current cost trends, the Company expects another year-over-year increase in its first quarter 2012 unit costs, compared to first quarter 2011's combined unit costs of 7.83 cents, excluding fuel and special items in both periods.” Company statement. Source: Southwest, 19-Jan-2012.