Southwest Q1 net profit down 32% despite record revenue
Southwest Airlines posted 2017 Q1 net income of US$351m, down 31.6% from a net profit of $513m in the 2016 March quarter, even as the carrier generated record Q1 revenue of $4.9b, up 1.2% year-over-year (YOY). Q1 expenses increased 8.8% YOY to $4.2b as labour costs rose 12.6% to $1.7b and fuel costs heightened 8.2% to $922m. Operating income was $658m, down 30.3% from an operating profit of $944m in the prior-year quarter. Southwest’s Q1 traffic rose 3.3% YOY to 29.3b RPMs on a 4.1% increase in capacity to 36.7b ASMs, producing a load factor of 79.9%, down 0.6 points. Yield dropped 2.6% to 15.1 cents. Southwest took delivery of 9 Boeing 737-800s and 3 737-700s in Q1 and is scheduled to take delivery of another 55 aircraft in 2017. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-05-01/unaligned/southwest-q1-net-profit-down-32-despite-record-revenue
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Southwest Q1 net profit down 32% despite record revenue
Southwest Airlines posted 2017 Q1 net income of US$351m, down 31.6% from a net profit of $513m in the 2016 March quarter, even as the carrier generated record Q1 revenue of $4.9b, up 1.2% year-over-year (YOY). Q1 expenses increased 8.8% YOY to $4.2b as labour costs rose 12.6% to $1.7b and fuel costs heightened 8.2% to $922m. Operating income was $658m, down 30.3% from an operating profit of $944m in the prior-year quarter. Southwest’s Q1 traffic rose 3.3% YOY to 29.3b RPMs on a 4.1% increase in capacity to 36.7b ASMs, producing a load factor of 79.9%, down 0.6 points. Yield dropped 2.6% to 15.1 cents. Southwest took delivery of 9 Boeing 737-800s and 3 737-700s in Q1 and is scheduled to take delivery of another 55 aircraft in 2017. <br/>
