Southwest Airlines reports record fourth quarter and full year profit; 41st consecutive year of profitability

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP January 24, 2014 11:54

Southwest Airlines reports record fourth quarter and full year profit; 41st consecutive year of profitability

Southwest Airlines has reported fourth quarter net income, excluding special items, of $236 million, or $.33 per diluted share, compared to fourth quarter 2012 net income, excluding special items, of $65 million, or $.09 per diluted share. This exceeded the First Call consensus estimate of $.29 per diluted share.

The airline also posted record fourth quarter net income of $212 million compared to net income of $78 million during the year-ago period. Southwest also posted a record full year net income of $805 million, or $1.12 per diluted share, compared to full year 2012 net income, of $417 million, or $.56 per diluted share. Full year net income was $754 million, which included $51 million (net) of unfavorable special items, compared to net income of $421 million, or $.56 per diluted share, in full year 2012, which included $4 million (net) of favorable special items.

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “We are happy to report full year 2013 net income of $805 million, and fourth quarter 2013 net income of $236 million, both excluding special items. We are extremely proud of these record results and the tremendous progress made on our strategic initiatives, which produced substantial returns and contributed significantly to our superb 2013 financial performance. Our full year 2013 total operating revenues were a record $17.7 billion, and our cost performance was excellent.”

Southwest states that it is on track with its AirTran integration, and announced that it has achieved approximately $400 million in annual net pre-tax synergies in 2013, as planned. “Since 2011, we have converted 17 of the 52 AirTran Boeing 737-700s to Southwest, and we have replaced the flying for 13 AirTran Boeing 717-200s transitioned to Delta in 2013, with Southwest 737 service,” said Kelly. “Nine more 717s were removed from active service at year end 2013, and the remaining 66 717s are scheduled to be removed from the AirTran network by the end of this year, and transitioned to Delta through 2015. The remaining 35 AirTran Boeing 737-700s are scheduled to be converted to Southwest this year.”

Southwest is on target to launch international service this year, which Kelly describes as a “huge milestone”. Construction of a five-gate international facility at Houston’s William P. Hobby Airport, expected to open in late 2015, has begun, and can accommodate Southwest service to destinations in the Caribbean, Mexico, Central America, and the northern cities of South America. “We also have future plans to bring Southwest near-international service to Fort Lauderdale-Hollywood International Airport (FLL). Under a recently executed agreement with Broward County, Florida, which owns and operates FLL, we will oversee and manage the design and construction of the airport’s Terminal 1 Modernization Project. In addition to significant improvements to the existing Terminal 1, the project includes the design and construction of a new five-gate Concourse A with an international processing facility,” adds Kelly.

During 2014, Southwest expects to take delivery of 33 new Boeing 737-800s and 12 pre-owned -700s, which will keep Southwest’s 2014 capacity relatively flat, year-over-year, as it continues to transition the AirTran 717 fleet to Delta, and retire Classic Boeing 737 aircraft.

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP January 24, 2014 11:54
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Fairline%2Fsouthwest-airlines-reports-record-fourth-quarter-and-full-year-profit-41st-consecutive-year-of-profitability%2F"> registered </a> users can comment.