Friday, May 22nd28.7°C
26383
26337

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

24947


Recent Trending




Today's Market
S&P TSX15200.76-2.85
S&P CDNX703.48+2.97
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8142-0.0053
Gold1205.70+1.30
Oil57.45-1.98
Lumber273.30+3.70
Natural Gas2.885-0.064

 
Okanagan Companies
Pacific Safety0.13-0.01
Knighthawk0.010.00
QHR Technologies Inc1.48+0.03
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.09+0.01
Russel Metals25.79-0.03
Copper Mountain Mining1.38-0.03
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation2.20+0.60

 



26416

FEATURED Property
2284373464 Rockview Lane
5 bedrooms 4 baths
$1,275,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...


Squaring the circle

Photo: Thinkstock.comI have been reading about market segmentation and choice. Howard Moskowitz’s research into tomato sauce as retold by Malcom Gladwell on the TED talks (http://www.ted.com/tal...

_



26418

26112


Member of BC Press Council


25771