canyonblue
Everyone loves Southwest
- Joined
- Nov 26, 2001
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DALLAS (Reuters) — Southwest Airlines Inc., the only major U.S. airline to post an operating and net profit in 2002, expects to be profitable in both the second quarter and for the full year 2003, Chief Executive Jim Parker said on Wednesday.
"We do expect to be profitable this quarter and for the year," he said at the company's annual shareholder meeting.
Parker also unveiled a variety of new routes and service, particularly on the West Coast and serving Las Vegas. Some of the new service will begin on Aug. 10 and some will start Sept. 10.
"We clearly have growth ahead of us," he said. The No. 6 U.S. airline will also take delivery of 17 Boeing 737-700 aircraft this year.
Southwest's founder and chairman, Herb Kelleher, also told shareholders the airline is poised to acquire additional aircraft if revenue improves.
A huge number of aircraft remain parked in the desert as demand for air travel continues to remain below normal levels following the Sept. 11, 2001, attacks. A weak economy and the war in Iraq have added to the sector's trouble.
As a result, the U.S. airline industry at large is still in the midst of its worst ever financial downturn, with $11 billion in net losses tallied by the largest eight carriers in 2002 including Southwest's $241 million net profit.
Major carriers just last week announced a $10 fare hike to take effect June 1, and were joined by smaller airlines this week. But Southwest will not raise its rates as other airlines have done, Kelleher said.
While the airline does typically raise prices heading into the summer season, Kelleher said the fares will not be hiked as much and will not apply systemwide.
"We do expect to be profitable this quarter and for the year," he said at the company's annual shareholder meeting.
Parker also unveiled a variety of new routes and service, particularly on the West Coast and serving Las Vegas. Some of the new service will begin on Aug. 10 and some will start Sept. 10.
"We clearly have growth ahead of us," he said. The No. 6 U.S. airline will also take delivery of 17 Boeing 737-700 aircraft this year.
Southwest's founder and chairman, Herb Kelleher, also told shareholders the airline is poised to acquire additional aircraft if revenue improves.
A huge number of aircraft remain parked in the desert as demand for air travel continues to remain below normal levels following the Sept. 11, 2001, attacks. A weak economy and the war in Iraq have added to the sector's trouble.
As a result, the U.S. airline industry at large is still in the midst of its worst ever financial downturn, with $11 billion in net losses tallied by the largest eight carriers in 2002 including Southwest's $241 million net profit.
Major carriers just last week announced a $10 fare hike to take effect June 1, and were joined by smaller airlines this week. But Southwest will not raise its rates as other airlines have done, Kelleher said.
While the airline does typically raise prices heading into the summer season, Kelleher said the fares will not be hiked as much and will not apply systemwide.
