Southwest Airlines posts profit hike

SOUTHWEST Airlines (US) answers the naysayers by more than doubling its profits in the second quarter of 2012.
The low-fare major domestic carrier’s net income was US$228m compared with $161m during the same period in 2011 despite the ‘sluggish’ US economy and exorbitant fuel costs.
“Record revenues driven by steady growth were sufficient to overcome high jet fuel prices and produce a record operating income of $485m and a record net income of $273m both excluding special items," says Southwest’s chief executive officer Gary Kelly, in a statement posted on the company’s website.  
"We are producing very strong results despite a fragile economic environment [and] have significant efforts underway to strategically optimise and modernise our fleet.”
He adds: “Given that we don’t plan to grow the fleet until we hit our financial targets, deferring 30 new aircraft deliveries will reduce our 2012 to 2014 capital spending by approximately $1bn.” 
The company repaid $469m in debts during first half 2012 and is scheduled to repay approximately $90m in debts for the remainder of the year.
Share this story

Related Topics

Latest news

Leipzig/Halle bucks the trend with fifteenth year of cargo growth

By Rachelle Harry

Leipzig/Halle Airport has increased its cargo volumes for the fifteenth consecutive year and more than tenfold since 2007. In 2019,…

Read More

Share this story

CSafe Global launches San Juan facility

By Rachelle Harry

Temperature-controlled container company CSafe Global has launched a new service centre facility in pharma hub San Juan, Puerto Rico. At…

Read More

Share this story

Schiphol sees cargo volumes slide on fewer freighters and tough market

By Damian Brett

Schiphol saw its cargo traffic drop last year as reduced freighter flights and weaker market conditions took their toll. Total…

Read More

Share this story