Southwest posts record 3Q revenue as summer travel returns
2 years, 1 month ago

Southwest posts record 3Q revenue as summer travel returns

Associated Press  

Southwest posted record operating revenue in its third quarter as travelers returned in force over the summer. CEO Bob Jordan said that revenue trends stayed strong in September, even as the busy summer travel season wrapped up with business travel picking up after Labor Day. Jordan said the company anticipates revenue trends to improve from the third to fourth quarters as leisure and business travel remaining strong in an environment of lower capacity. Southwest expects first-quarter capacity to rise about 10% and second-quarter capacity to increase approximately 14% year over year, Jordan said, Southwest expects to be able to offer more flight options to travelers next year. Jordan said the company anticipates its route network will be approximately 90% restored by the summer, and fully restored by December 2023, compared with pre-pandemic travel.

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History of this topic

Southwest Airlines says a key measure of pricing power will be weaker than expected in 2Q
5 months, 4 weeks ago

Southwest Airlines says a key measure of pricing power will be weaker than expected in 2Q

Associated Press  

DALLAS — Southwest Airlines, already under pressure from a hedge fund for disappointing financial results, said Wednesday that a key revenue ratio will be weaker than expected because of changes in how consumers book travel. However, Southwest said, revenue for each seat flown one mile – a closely watched measure of pricing power – will fall by 4% to 4.5% …

An investment firm has taken a $1.9 billion stake in Southwest Airlines and wants to oust the CEO
6 months, 2 weeks ago

An investment firm has taken a $1.9 billion stake in Southwest Airlines and wants to oust the CEO

Associated Press  

DALLAS — Activist shareholder Elliott Investment Management has bought a $1.9 billion stake in Southwest Airlines and is seeking to force out the CEO of the airline, which has struggled with operational and financial problems. It said Jordan and former CEO Gary Kelly, now the airline’s executive chairman, “are not up to the task of modernizing Southwest.” Elliott is calling …

Southwest will limit hiring and drop 4 airports after loss. American Airlines posts 1Q loss as well
7 months, 4 weeks ago

Southwest will limit hiring and drop 4 airports after loss. American Airlines posts 1Q loss as well

Associated Press  

DALLAS — Southwest Airlines will limit hiring and stop flying to four airports as it copes with weak financial results and delays in getting new planes from Boeing. In August, Southwest will stop flying to four airports: Cozumel in Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston, where the airline’s major operation is at smaller …

The US has decided that Southwest’s customer service failed during flight cancellations last winter
1 year, 1 month ago

The US has decided that Southwest’s customer service failed during flight cancellations last winter

Associated Press  

DALLAS — Federal regulators have told Southwest Airlines that the carrier failed to provide enough help to travelers who were stranded during massive cancellations last December, and the airline could be subject to a fine. Southwest said in a regulatory filing Monday that it can’t estimate the cost of a fine and damages from lawsuits stemming from nearly 17,000 canceled …

Southwest Airlines quarterly profit slides 30% and says growth will slow next year
1 year, 1 month ago

Southwest Airlines quarterly profit slides 30% and says growth will slow next year

Associated Press  

DALLAS — Southwest Airlines’ third-quarter profit fell 30% to $193 million despite record revenue as leisure travel boomed over the summer, and the airline is losing pricing power at the same time that labor costs are rising. Southwest said Thursday that it will throttle back growth plans next year because of changes in travel, including a disappointingly slow recovery in …

Southwest promoted five executives just weeks after a disastrous meltdown
1 year, 11 months ago

Southwest promoted five executives just weeks after a disastrous meltdown

NPR  

Southwest promoted five executives just weeks after a disastrous meltdown Enlarge this image toggle caption Kamil Krzaczynski/AFP via Getty Images Kamil Krzaczynski/AFP via Getty Images Southwest Airlines announced seasonal sales and leadership promotions just weeks after a historic failure that affected hundreds of thousands of passengers. The carrier promoted five executives to even higher positions of responsibility. The announcement runs …

Southwest’s strong 2022 rebound soured by holiday debacle
1 year, 11 months ago

Southwest’s strong 2022 rebound soured by holiday debacle

Associated Press  

DALLAS — Southwest Airlines is anticipating a money-losing fourth quarter after a winter storm and technology meltdown led to nearly 17,000 canceled flights and stranded hundreds of thousands of holiday travelers. The airline said that expenses increased due to reimbursements to customers for out-of-pocket costs — the company has promised to cover “reasonable” bills for hotel rooms, meals and alternate …

Southwest Airlines flight cancellations continue to snowball
1 year, 11 months ago

Southwest Airlines flight cancellations continue to snowball

Associated Press  

DALLAS — Families hoping to catch a Southwest Airlines flight after days of cancellations, missing luggage and missed family connections suffered through another wave of scrubbed flights, with another 2,500 pulled from arrival and departure boards Wednesday. In a video that Southwest posted late Tuesday, CEO Robert Jordan said Southwest would operate a reduced schedule for several days but hoped …

Southwest Airlines brings back dividend as travel rebounds
2 years ago

Southwest Airlines brings back dividend as travel rebounds

Associated Press  

DALLAS — Southwest Airlines said Wednesday that it is bringing back dividends for shareholders, which it suspended when the pandemic devastated the airline business in early 2020. Southwest has posted the highest net income among U.S. airlines in the first nine months of this year, reporting a $759 million profit in that span. “So far we are seeing no signs …

Southwest forecasts a slower recovery in business travel
2 years, 3 months ago

Southwest forecasts a slower recovery in business travel

Associated Press  

DALLAS — Southwest Airlines said Thursday that corporate travel is recovering more slowly than the airline had expected, although that is offset by continuing strong demand from leisure travelers even after the end of the traditional summer vacation season. Southwest said revenue from “managed” business travel in the quarter ending Sept. 30 will be down 26% to 28% from 2019 …

Airlines count on business travelers to keep recovery going
2 years, 3 months ago

Airlines count on business travelers to keep recovery going

Associated Press  

DALLAS — With summer vacations winding down, airlines are counting on the return of more business travelers to keep their pandemic recovery going into the fall. The Global Business Travel Association recently predicted that corporate travel won’t fully return until mid-2026, 18 months later than the trade group had previously forecast. That is slowly building back.” Conventions and other big …

Southwest loses $278M in Q1 but sees profitable rest of 2022
2 years, 7 months ago

Southwest loses $278M in Q1 but sees profitable rest of 2022

Associated Press  

DALLAS — Southwest Airlines lost $278 million in the first quarter but said Thursday that it expects to be profitable for the rest of the year because of surging demand for travel. Southwest said its workforce grew by 3,300 people in the quarter, and CEO Robert Jordan said the airline was still “intensely focused” on hiring and training workers heading …

When will business travel return?
2 years, 10 months ago

When will business travel return?

LA Times  

Southwest Airlines Co.’s top executive hinted in an earnings call that business travel might not recover as quickly as anticipated a year ago. Southwest Airlines Co.’s top executive rued the slow rebound in business travel in an earnings call Thursday and hinted that the pace of recovery may continue to be slower than some industry veterans anticipated a year ago. …

Losses mount for American and Southwest, but their outlook is brighter
3 years, 5 months ago

Losses mount for American and Southwest, but their outlook is brighter

CNN  

New York CNN Business — Financial results are finally getting better at the nation’s major airlines, thanks to a surge of vacation travel this summer. “Second quarter 2021 marked an important milestone in the pandemic recovery as leisure travel demand surged,” said Southwest CEO Gary Kelly. But Tom Nealon, Southwest’s President, told investors on Thursday that so far “we have …

US airline bailout helps Southwest post $116 million profit
3 years, 8 months ago

US airline bailout helps Southwest post $116 million profit

Associated Press  

DALLAS — Southwest Airlines is the first major U.S. airline to report a profit since the pandemic started, as federal payroll aid helped boost the company to net income of $116 million in the first quarter. Southwest is benefitting more from the pickup in leisure travel because its biggest rivals — American, Delta and United — depend more on business …

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