Southwest Airlines streak runs to 48 quarters
Associated Press
04/22/2003 12:00 AM
Low-fare carrier Southwest Airlines Co. reported its 48th consecutive profitable quarter Monday, even as its larger rivals racked up heavy losses.
Southwest's first-quarter earnings of $24 million, or 3 cents per share, were an increase of 14.3 percent from the year-ago period, the Dallas-based carrier said. In the first three months of 2002, Southwest's $21.4 million in net income was its lowest quarterly profit since fourth quarter 1994.
Revenue rose 7.5 percent to $1.35 billion from $1.26 billion.
The latest results were in line with estimates of analysts surveyed by Thomson First Call.
"Although our financial performance has been exceptional relative to the airline industry as a whole, Southwest, too, has been severely impacted by the lingering effects of the 2001 terrorist attacks and the war in Iraq," said James F. Parker, company vice chairman and chief executive officer. "Although our revenues were showing signs of recovery during fourth quarter 2002 and into first quarter 2003, those trends were disrupted.
"Since the war began, bookings for second quarter 2003 have softened further," he said. "Currently, we expect only modest revenue growth, if any, compared to last year's second quarter revenue of $1.47 billion, which included $36 million in additional revenue related to a reduction in estimated refunds and exchanges included in air traffic liability."
The last time Southwest Airlines lost money, in the first quarter of 1991, the United States was also at war with Iraq. Financial performance of the U.S. airline industry had begun suffering soon after the August 1990 invasion of Kuwait by Iraq.
Last week, Delta Air Lines reported a wider first-quarter loss and gave a gloomy forecast days after Continental and Northwest Airlines both reported hefty losses. Delta lost $466 million, while Continental lost $221 million in the first quarter and Northwest lost $396 million.
Associated Press
04/22/2003 12:00 AM
Low-fare carrier Southwest Airlines Co. reported its 48th consecutive profitable quarter Monday, even as its larger rivals racked up heavy losses.
Southwest's first-quarter earnings of $24 million, or 3 cents per share, were an increase of 14.3 percent from the year-ago period, the Dallas-based carrier said. In the first three months of 2002, Southwest's $21.4 million in net income was its lowest quarterly profit since fourth quarter 1994.
Revenue rose 7.5 percent to $1.35 billion from $1.26 billion.
The latest results were in line with estimates of analysts surveyed by Thomson First Call.
"Although our financial performance has been exceptional relative to the airline industry as a whole, Southwest, too, has been severely impacted by the lingering effects of the 2001 terrorist attacks and the war in Iraq," said James F. Parker, company vice chairman and chief executive officer. "Although our revenues were showing signs of recovery during fourth quarter 2002 and into first quarter 2003, those trends were disrupted.
"Since the war began, bookings for second quarter 2003 have softened further," he said. "Currently, we expect only modest revenue growth, if any, compared to last year's second quarter revenue of $1.47 billion, which included $36 million in additional revenue related to a reduction in estimated refunds and exchanges included in air traffic liability."
The last time Southwest Airlines lost money, in the first quarter of 1991, the United States was also at war with Iraq. Financial performance of the U.S. airline industry had begun suffering soon after the August 1990 invasion of Kuwait by Iraq.
Last week, Delta Air Lines reported a wider first-quarter loss and gave a gloomy forecast days after Continental and Northwest Airlines both reported hefty losses. Delta lost $466 million, while Continental lost $221 million in the first quarter and Northwest lost $396 million.