canyonblue
Everyone loves Southwest
- Joined
- Nov 26, 2001
- Posts
- 2,314
Southwest Air CFO:On Track To Meet, Beat '06 Earnings Goal
By Ann Keeton, Of DOW JONES NEWSWIRES
CHICAGO -(Dow Jones)- Southwest Airlines Co. (LUV) is on track to meet or beat its goal of increasing earnings by 15% in 2006, Laura Wright, chief financial officer, said during a conference Webcast on Wednesday.
For the second quarter, the low-cost airline expects both revenue and costs to rise, the executive said. Southwest will continue to introduce modest increases in ticket prices to cover added costs for fuel and operations, Wright said.
Southwest's business will grow between 8% and 9% this year, as planned, Wright said, as the company adds 33 aircraft."We have tried to find some more aircraft, but there aren't any out there," she said. Long-term growth plans, with new aircraft orders from Boeing Co. (BA), remain intact, she said.
Compared with other low-cost carriers, it's relatively easy for Southwest to grow, Wright said. With a large flight network that serves more than 60 cities, it's easy for the airline to add flight frequencies and new flights to "connect the dots" between cities the airline serves.
By 2008 or 2009, Southwest will be ready to expand to international flying through code-sharing with partner ATA Airlines, Wright said.With industry-leading fuel hedges, including a 70% hedge this year at $36 a barrel, "we have a significant advantage over competitors on fuel until 2010," Wright said. "Our challenge is to keep our ex-fuel CASM (cost per seat-mile) flat." The airline remains optimistic that non-fuel costs in 2006 will be flat with 2005.
On the revenue side, industry trends remain positive, Wright said. The strength of passenger traffic this year "has surprised us somewhat.
By Ann Keeton, Of DOW JONES NEWSWIRES
CHICAGO -(Dow Jones)- Southwest Airlines Co. (LUV) is on track to meet or beat its goal of increasing earnings by 15% in 2006, Laura Wright, chief financial officer, said during a conference Webcast on Wednesday.
For the second quarter, the low-cost airline expects both revenue and costs to rise, the executive said. Southwest will continue to introduce modest increases in ticket prices to cover added costs for fuel and operations, Wright said.
Southwest's business will grow between 8% and 9% this year, as planned, Wright said, as the company adds 33 aircraft."We have tried to find some more aircraft, but there aren't any out there," she said. Long-term growth plans, with new aircraft orders from Boeing Co. (BA), remain intact, she said.
Compared with other low-cost carriers, it's relatively easy for Southwest to grow, Wright said. With a large flight network that serves more than 60 cities, it's easy for the airline to add flight frequencies and new flights to "connect the dots" between cities the airline serves.
By 2008 or 2009, Southwest will be ready to expand to international flying through code-sharing with partner ATA Airlines, Wright said.With industry-leading fuel hedges, including a 70% hedge this year at $36 a barrel, "we have a significant advantage over competitors on fuel until 2010," Wright said. "Our challenge is to keep our ex-fuel CASM (cost per seat-mile) flat." The airline remains optimistic that non-fuel costs in 2006 will be flat with 2005.
On the revenue side, industry trends remain positive, Wright said. The strength of passenger traffic this year "has surprised us somewhat.
