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Finally at SWA
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- Jun 23, 2002
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Southwest Airlines Looking for Expansion Opportunities
New York Times 07/22/03
author: Reuters
c. 2003 New York Times Company
CHICAGO, July 21 — Southwest Airlines reported an increase in its quarterly profit today and said that it would speed the delivery of planes next year as it looked for opportunities to expand.
Southwest, the only major United States carrier to report consistent profits since the Sept. 11 attacks, said that it would increase capacity 6 percent to 7 percent next year and that profits in this year's third quarter would be higher than the $75 million it posted a year ago.
Its larger rivals, meanwhile, are deferring aircraft deliveries and relying on government aid to offset huge losses.
The airline also said it might add a city to its network in 2004, which would be its first move into a new market since it started service to Norfolk, Va., a month after Sept. 11, 2001.
Southwest is also looking to add business where its bigger competitors — strapped with excessive costs — are cutting back. In a conference call with analysts, its chief financial officer, Gary C. Kelly, said the decision by AMR, the parent of American Airlines, to reduce its St. Louis service provided an opportunity for Southwest to expand. "We are interested in doing something there," Mr. Kelly said.
Southwest reported second-quarter net income of $246 million, or 30 cents a share, including $143 million in government aid to offset security costs. That was more than the $102 million, or 13 cents a share, it posted for the second quarter of 2002.
Even without the government aid, Southwest's profit rose 22.6 percent, to $103 million, or 13 cents a share, from $84 million, or 10 cents a share, before one-time items a year earlier. Analysts on average expected Southwest to earn 11 cents a share.
The carrier said it recently exercised options for the delivery of nine Boeing 737-700's next year.
New York Times 07/22/03
author: Reuters
c. 2003 New York Times Company
CHICAGO, July 21 — Southwest Airlines reported an increase in its quarterly profit today and said that it would speed the delivery of planes next year as it looked for opportunities to expand.
Southwest, the only major United States carrier to report consistent profits since the Sept. 11 attacks, said that it would increase capacity 6 percent to 7 percent next year and that profits in this year's third quarter would be higher than the $75 million it posted a year ago.
Its larger rivals, meanwhile, are deferring aircraft deliveries and relying on government aid to offset huge losses.
The airline also said it might add a city to its network in 2004, which would be its first move into a new market since it started service to Norfolk, Va., a month after Sept. 11, 2001.
Southwest is also looking to add business where its bigger competitors — strapped with excessive costs — are cutting back. In a conference call with analysts, its chief financial officer, Gary C. Kelly, said the decision by AMR, the parent of American Airlines, to reduce its St. Louis service provided an opportunity for Southwest to expand. "We are interested in doing something there," Mr. Kelly said.
Southwest reported second-quarter net income of $246 million, or 30 cents a share, including $143 million in government aid to offset security costs. That was more than the $102 million, or 13 cents a share, it posted for the second quarter of 2002.
Even without the government aid, Southwest's profit rose 22.6 percent, to $103 million, or 13 cents a share, from $84 million, or 10 cents a share, before one-time items a year earlier. Analysts on average expected Southwest to earn 11 cents a share.
The carrier said it recently exercised options for the delivery of nine Boeing 737-700's next year.
