Southwest expected to report slim profit in 1Q2011
Southwest Airlines is expected to report a slim 1Q2011 profit earnings, due to the effects of rising fuel costs and the fallout from the fuselage rupture on a B737-300 and related aircraft groundings. CEO Gary Kelly has stated that rising energy prices could increase the company's costs by USD1 billion. Southwest stock rose 0.2% on Tuesday.
- Southwest Airlines expected to report a slim 1Q2011 profit due to rising fuel costs and aircraft groundings.
- Rising energy prices could increase Southwest Airlines' costs by USD1 billion.
- Cebu Pacific reports a 12% increase in traffic in 1Q2011, on track to handle a record 12 million passengers in 2011.
- Cebu Pacific's international traffic is surging, with international passenger numbers up nearly a third.
- Cebu Pacific expects passenger traffic to continue growing as it expands its fleet with 16 additional A320 aircraft.
- Southwest Airlines stock rose 0.2% and Cebu Pacific shares rose 1% in trading on Tuesday.
Cebu Pacific reported traffic in 1Q2011 rose 12% to 2.8 million passengers, putting the carrier on track to handle a record 12 million passengers in 2011. International traffic is surging at the airline as it reinforces its international network with more frequencies, with international passenger numbers up nearly a third. Load factors were notably stronger, up 4.0 percentage points to 87%.
Cebu Pacific handled close to 10.5 million passengers in 2010. The company said it was expecting its passenger traffic to continue to grow as it expands its fleet. Between 2012 and 2014, Cebu Pacific will take an additional 16 A320 aircraft. Shares in the carrier rose 1% in trading on Tuesday.
Selected LCC share price movements (% change): 19-Apr-2011
