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Southwest Airlines reports USD11 million net profit in 1Q2010

23-Apr-2010 10:10 AM
Southwest Airlines reports (22-Apr-2010) the following financial highlights for the three months ended 31-Mar-2010:
  • Revenue: USD2,630 million, +11.6% year-on-year;
  • Operating costs: USD2,576 million, +7.0%;
  • Fuel: +17.6%;
  • Operating profit (loss): USD54 million, compared to a loss of USD50 million in the corresponding period last year;
  • Net profit (loss): USD11 million, compared to a loss of USD91 million in the corresponding period last year;
  • Revenue passenger numbers: 20 million, +1.1%;
  • Passenger load factor: 75.9%, +6.0 ppts;
  • Passenger Yield (per RPM) by operating revenue: +19.3%. [more]
Southwest Airlines: "We are extremely pleased to report a profitable start to the year, especially in this challenging economic environment exacerbated by persistently high energy costs. As the quarter progressed, we began to see modest improvement in demand for business travel, as measured by the increase in full-fare traffic. Overall demand for our Low Fares and high quality Customer Service remained strong, resulting in a record first quarter performance for load factor, passenger yield, and passenger revenues. Furthermore, 1Q 2010 operating unit revenues, and the corresponding 19.3% year-over-year increase, represent all-time quarterly records. To achieve this revenue performance in, seasonally, the weakest quarter, is notable. To do so in a recovering economic environment is truly remarkable. Thus far, strong load factor and yield trends have continued in Apr-2010 and, assuming trends continue, we expect another significant year-over-year unit revenue gain in 2Q2010," Gary C. Kelly, CEO. Source: Southwest Airlines, 22-Apr-2010.