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Southwest Airlines reports 69th consecutive quarter of profitability


Southwest reported record 2Q08 (three months ended 30-Jun-08) operating revenues of USD2.9 billion, representing an 11.1% year-on-year increase, as the airline’s major revenue initiatives show signs of initial success. Net profit also improved, by 15.5% to USD321 million, marking the airline’s 69th consecutive quarter of profitability, despite the weak domestic economy and unprecedented jet fuel prices. [1903 words]

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  • Operating margin slips 9.3 ppts to 7.1%
  • Yields on the rise with further improvements expected
  • Soaring energy costs a concern
  • Benefiting significant from strong fuel hedging positions
  • Average sector length on the rise
  • 1H08: Reports revenue of USD5.4 billion (+12.9%) and net profit of USD355 million (-4.3%)
  • No alterations to 2008-18 fleet growth plans following reductions announced in 1Q08
  • Capacity growth for 2009 2-3% at best
  • Pushing into international markets with WestJet
  • Continued expansion at Denver
  • Outlook: Positive on a revenue side; continued volatility on the cost side

Graphs and data:

  • Southwest financial highlights for three months ended 30-Jun-08
  • Southwest operating margin: 1Q06 to 2Q08 
  • Southwest yield per RPM (US cents): 2Q04 to 2Q08
  • Southwest cost per ASK (US cents): 2Q04 to 2Q08 
  • Southwest fuel cost per gallon (USD): Feb-00 to Mar-08
  • Southwest Fuel Hedging Programme: as at Jul-08
  • Southwest Airlines sector length (miles): Jun-04 to Jun-08
  • Southwest financial highlights for six months ended 30-Jun-08 
  • Southwest Airlines’ total delivery schedule
  • Southwest Airlines’ capacity (ASK) growth:  Jan-04 to May-08
  • WestJet and Southwest key information 
  • WestJet and Southwest destination overlap: Week commencing 07-Jul-08
  • New services from Denver
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