Southwest Airlines quarterly profit jumps 35%
Southwest Airlines' Q2 profit rose 35% as fuel costs fell and the airline flew fuller planes. The carrier's net income increased to US$820m in Q2 ended June 30, from USD$608m a year earlier. Total operating revenue rose 5.3% to $5.38b. Southwest said it expected RASM to fall 3-4% in the quarter ending September. "While solid traffic demand has continued into July thus far, the fare environment remains challenging," CE Gary Kelly said. Southwest's total expenses rose 2% to USD$4.11b in Q2. However, unit cost fell 2.6%, helped by lower fuel costs. Cheap oil has also forced Southwest, the largest hedger among US airlines, to pay hefty sums to counter-parties in hedge contracts that it acquired for protection in case of a rise in energy prices. As a result, the carrier will not reap the full benefit of cheaper fuel. <br/>
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Southwest Airlines quarterly profit jumps 35%
Southwest Airlines' Q2 profit rose 35% as fuel costs fell and the airline flew fuller planes. The carrier's net income increased to US$820m in Q2 ended June 30, from USD$608m a year earlier. Total operating revenue rose 5.3% to $5.38b. Southwest said it expected RASM to fall 3-4% in the quarter ending September. "While solid traffic demand has continued into July thus far, the fare environment remains challenging," CE Gary Kelly said. Southwest's total expenses rose 2% to USD$4.11b in Q2. However, unit cost fell 2.6%, helped by lower fuel costs. Cheap oil has also forced Southwest, the largest hedger among US airlines, to pay hefty sums to counter-parties in hedge contracts that it acquired for protection in case of a rise in energy prices. As a result, the carrier will not reap the full benefit of cheaper fuel. <br/>
