x

Abu Dhabi, UAESunday 23 September 2018

Southwest Airlines profits top expectations

The fourth-largest US airline by passenger traffic said net income rose to $1.89 billion

A Southwest Airlines jet makes its approach to Dallas Love Field airport. Tony Gutierrez/AP
A Southwest Airlines jet makes its approach to Dallas Love Field airport. Tony Gutierrez/AP

Southwest Airlines edged past expectations for fourth quarter profit on Thursday, helped by a small increase in unit revenue per seat driven by higher overall passenger numbers.

The Dallas-based carrier said it expects first-quarter unit revenue, which compares ticket sales with flight capacity, to increase in the 1 to 2 per cent range, compared to last year.

In the fourth quarter ended December 31 the measure rose 1.9 per cent.

_________

Read more:

United Airlines' fourth-quarter profit up 46 per cent

US airline stocks plummet on United growth plan

_________

Average passenger fares, however, were down 2.7 per cent and shares of Southwest dipped in premarket trading after a torrid Wednesday for airline stocks driven by growing fears of a price war in the sector.

The fourth-largest US airline by passenger traffic said net income rose to $1.89 billion , or $3.18 per share, from $522 million, or $0.84 per share, a year earlier.

That was largely driven by a $1.4bn benefit due to tax reform legislation.

Operating revenue, however, also rose 3.9 per cent to $5.27bn.

Excluding items, the company earned $0.77 a share, versus analysts' expectations of $0.76 per share, according to Reuters.

RELATED ARTICLES
Recommended