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.
Read more Business News
- Tour operator condemnedBC - 8:47 am
- Firefighters fill boots w cashCentral Okanagan - 8:26 am
- Consultation for cell towers?Poll
- Tranquille Road celebrationKamloops - 9:56 am
|QHR Technologies Inc||1.37||+0.05|
|Anavex Life Sciences||0.223||-0.0031|
|Copper Mountain Mining||2.66||-0.02|
|Sunrise Resources Ltd||0.02||-0.005|
|Mission Ready Services||0.29||-0.01|
“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...
Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...
There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...