DALLAS, Oct 17, 2002 /PRNewswire-FirstCall via COMTEX/ -- Southwest Airlines' (LUV) net income for third quarter 2002 was $74.9 million, compared to third quarter 2001 net income of $151.0 million. Net income per diluted share was $.09 for third quarter 2002, compared to $.19 for third quarter 2001. The Company's third quarter net income for both 2002 and 2001 includes special items resulting from last year's terrorist attacks. Excluding the special items, third quarter 2002 net income was $50.5 million, or $.06 per diluted share, which compares favorably to First Call's consensus estimate of $.05 per diluted share. The Company's third quarter 2001 net income, excluding special items, was $82.8 million, or $.10 per diluted share.
Special Items
Pursuant to the Air Transportation Safety and System Stabilization Act (Act), which was enacted following last year's terrorist attacks, the Company recognized $48 million and $169 million as "Other gains" in its Condensed Consolidated Statements of Income for third quarter 2002 and 2001, respectively.
Third quarter 2001 results also included special charges of approximately $58 million arising from the September 11 attacks. The prior year charges included a $30 million reduction in "Passenger revenue" resulting from estimated refunds of nonrefundable fares; $15 million in charges to "Other operating expenses" for write-downs of various assets due to impairment; and other charges that were included in "Other (gains) losses, net."
"Following September 11, 2001, Southwest's fleet growth slowed considerably. As we continue to cautiously resume our growth plans, we have accelerated delivery of one 2003 and two 2004 Boeing 737-700 aircraft to fourth quarter 2002. We have also exercised two future options for accelerated delivery to fourth quarter 2002 and four future options for accelerated delivery to 2003. These changes bring our total planned deliveries for 2002 to 23; 2003 to 17; and future commitments, including options and purchase rights, to 396 aircraft for 2004 through 2012.
"Southwest announced today that additional service will be added to our existing route system during fourth quarter 2002 and first quarter 2003. In addition to introducing new nonstop service between Baltimore/Washington and San Jose, we plan to add additional frequencies between Baltimore/Washington and Orlando, Birmingham, Fort Lauderdale, Manchester, Hartford, and Tampa.
Special Items
Pursuant to the Air Transportation Safety and System Stabilization Act (Act), which was enacted following last year's terrorist attacks, the Company recognized $48 million and $169 million as "Other gains" in its Condensed Consolidated Statements of Income for third quarter 2002 and 2001, respectively.
Third quarter 2001 results also included special charges of approximately $58 million arising from the September 11 attacks. The prior year charges included a $30 million reduction in "Passenger revenue" resulting from estimated refunds of nonrefundable fares; $15 million in charges to "Other operating expenses" for write-downs of various assets due to impairment; and other charges that were included in "Other (gains) losses, net."
"Following September 11, 2001, Southwest's fleet growth slowed considerably. As we continue to cautiously resume our growth plans, we have accelerated delivery of one 2003 and two 2004 Boeing 737-700 aircraft to fourth quarter 2002. We have also exercised two future options for accelerated delivery to fourth quarter 2002 and four future options for accelerated delivery to 2003. These changes bring our total planned deliveries for 2002 to 23; 2003 to 17; and future commitments, including options and purchase rights, to 396 aircraft for 2004 through 2012.
"Southwest announced today that additional service will be added to our existing route system during fourth quarter 2002 and first quarter 2003. In addition to introducing new nonstop service between Baltimore/Washington and San Jose, we plan to add additional frequencies between Baltimore/Washington and Orlando, Birmingham, Fort Lauderdale, Manchester, Hartford, and Tampa.
