Thursday, April 2nd3.0°C
25757
25263

Higher fares, more full seats help push Southwest Airlines to record 2Q profit of $465 million

DALLAS - Southwest Airlines is reporting a record profit for the second quarter, more than doubling its earnings from a year ago.

The company said it set records for passenger fares per mile and the percentage of seats sold on its planes during the April-to-June period. It said that bookings in July have been strong, with passengers paying about 3 per cent more per mile than in July 2013.

Southwest Airlines Co. is in the midst of several big changes, including phasing out the AirTran Airways brand, starting international flights on Southwest, and expansion in Dallas and other key markets.

The Dallas-based company said Thursday that second-quarter net income rose to $465 million, or 67 cents per share, compared with $224 million, or 31 cents per share, a year earlier.

Excluding special items, the airline said it would have earned 70 cents per share. That beat Wall Street's forecast of 61 cents per share, according to FactSet.

Revenue climbed 8 per cent to $5.01 billion, topping analysts' forecast of $4.94 billion.

Southwest said that passenger revenue per available seat mile, a closely watched number in the airline business, rose 9 per cent, a sign that customers are paying higher average fares. Despite the higher prices, Southwest and AirTran filled 83.9 per cent of seats on the average flight, up from 81.6 per cent a year earlier.

The company caught a break at the fuel pump. Spending on fuel dropped 4 per cent to $1.4 billion. Labor spending, however, rose 8 per cent, also to $1.4 billion.

Its shares slipped 4 cents to $28.87 in morning trading.

The Canadian Press


Read more Business News

25775


Recent Trending




Today's Market
S&P TSX14942.55+40.11
S&P CDNX681.32+1.25
DJIA17698.18-77.94
Nasdaq4880.23-20.66
S&P 5002059.69-8.20
CDN Dollar0.7937+0.0011
Gold1205.50-2.60
Oil49.55-0.54
Lumber274.00+1.00
Natural Gas2.599-0.006

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.010.00
QHR Technologies Inc1.55+0.07
Cantex0.03-0.01
Anavex Life Sciences0.23+0.02
Metalex Ventures0.045+0.005
Russel Metals24.83+0.79
Copper Mountain Mining1.19+0.03
Colorado Resources0.11-0.01
ReliaBrand Inc0.0036-0.0024
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.23-0.02
Decisive Dividend Corporation1.80+0.02

 





FEATURED Property
2222895536 Denali Drive
4 bedrooms 4 baths
$2,190,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Down payment

If you have less than 20% down payment, mortgage insurance is required through Canada Mortgage & Housing (CMHC), Genworth or Canada Guaranty. Homeowners no longer need the minimum 5% down payment ...


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...

_








Member of BC Press Council


25522