HighSpeedClimb
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[SIZE=+2]Southwest's load factor slips 12:46 PM CDT
[/SIZE] [SIZE=-1]12:47 PM CDT on Wednesday, May 2, 2007
[/SIZE] [SIZE=-1]By TERRY MAXON / The Dallas Morning News
[email protected][/SIZE] The passenger loads on Southwest Airlines Co. flights in April were down more than four percentage points from a year earlier, and the results helped prompt one Wall Street analyst today to lower his ratings on the Dallas-based carrier.
Analyst Ray Neidl of Calyon Securities cut its earnings estimates for Southwest for the second quarter and for all of 2007 and 2008, and reduced his buying recommendation to “neutral” from “add.”
“April traffic numbers were disappointing for [Southwest],” Mr. Neidl wrote in a report, “and despite a relatively strong domestic demand environment, we do not believe that the aggressive growth rate that the company is pursuing can be achieved given tougher competition in the form of revitalized legacy carriers, bigger LCC [low-cost] carrier competition and ever-increasing fuel costs.”
Southwest reported that its load factor, or percentage of seats filled with paying passengers, dropped from 76.7 percent in April 2006 to 72.3 percent last month. Its traffic increased 3.3 percent, while the carrier expanded its April capacity by 9.6 percent over the 2006 period.
American Airlines Inc., the world’s largest carrier, said it carried less traffic last month, but its airplanes were a bit fuller, with 82.1 percent of seats filled. That’s up 0.4 percentage points from April 2006.
Fort Worth-based American said its traffic declined 3.3 percent on a 3.7 percent decrease in capacity. Its regional unit, American Eagle Airlines, said its traffic fell 2.6 percent on a 2.4 percent cut in capacity. American Eagle’s load factor was down 0.2 points to 74.2 percent.
AirTran Airways, said Wednesday its load factor dropped two percentage points, going from 78.8 percent in April 2006 to 76.8 percent last month. It increased its traffic 18.5 percent on a 21.5 percent increase in capacity.
Monday evening, Continental Airlines Inc. had reported that its April traffic increased 5.8 percent on a 5.9 percent increase in capacity. Its load factor dropped 0.2 percentage points, from 82.9 percent in last April to 82.7 percent this year.
Continental estimated that its unit revenues increased 0.5 to 1.5 percent in April, slightly less when its regional operations were included.
Continental said it “reiterated its guidance that demand remains strong and, based on its advanced booking outlook, the company expects load factors for the second quarter to keep pace with last year's record levels.” Continental had reported second quarter 2006 load factors of 82.9 percent, or 82.7 percent including its regional operations.
[/SIZE] [SIZE=-1]12:47 PM CDT on Wednesday, May 2, 2007
[/SIZE] [SIZE=-1]By TERRY MAXON / The Dallas Morning News
[email protected][/SIZE] The passenger loads on Southwest Airlines Co. flights in April were down more than four percentage points from a year earlier, and the results helped prompt one Wall Street analyst today to lower his ratings on the Dallas-based carrier.
Analyst Ray Neidl of Calyon Securities cut its earnings estimates for Southwest for the second quarter and for all of 2007 and 2008, and reduced his buying recommendation to “neutral” from “add.”
“April traffic numbers were disappointing for [Southwest],” Mr. Neidl wrote in a report, “and despite a relatively strong domestic demand environment, we do not believe that the aggressive growth rate that the company is pursuing can be achieved given tougher competition in the form of revitalized legacy carriers, bigger LCC [low-cost] carrier competition and ever-increasing fuel costs.”
Southwest reported that its load factor, or percentage of seats filled with paying passengers, dropped from 76.7 percent in April 2006 to 72.3 percent last month. Its traffic increased 3.3 percent, while the carrier expanded its April capacity by 9.6 percent over the 2006 period.
American Airlines Inc., the world’s largest carrier, said it carried less traffic last month, but its airplanes were a bit fuller, with 82.1 percent of seats filled. That’s up 0.4 percentage points from April 2006.
Fort Worth-based American said its traffic declined 3.3 percent on a 3.7 percent decrease in capacity. Its regional unit, American Eagle Airlines, said its traffic fell 2.6 percent on a 2.4 percent cut in capacity. American Eagle’s load factor was down 0.2 points to 74.2 percent.
AirTran Airways, said Wednesday its load factor dropped two percentage points, going from 78.8 percent in April 2006 to 76.8 percent last month. It increased its traffic 18.5 percent on a 21.5 percent increase in capacity.
Monday evening, Continental Airlines Inc. had reported that its April traffic increased 5.8 percent on a 5.9 percent increase in capacity. Its load factor dropped 0.2 percentage points, from 82.9 percent in last April to 82.7 percent this year.
Continental estimated that its unit revenues increased 0.5 to 1.5 percent in April, slightly less when its regional operations were included.
Continental said it “reiterated its guidance that demand remains strong and, based on its advanced booking outlook, the company expects load factors for the second quarter to keep pace with last year's record levels.” Continental had reported second quarter 2006 load factors of 82.9 percent, or 82.7 percent including its regional operations.
