NYTimes.com Article: Southwest Posts 48th Profitable Quarter

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



This article from NYTimes.com
has been sent to you by psa188@xxxxxxxxx


/-------------------- advertisement -----------------------\

Explore more of Starbucks at Starbucks.com.
http://www.starbucks.com/default.asp?ci=1015
\----------------------------------------------------------/

Southwest Posts 48th Profitable Quarter

April 21, 2003
By THE ASSOCIATED PRESS






Filed at 8:59 a.m. ET

DALLAS (AP) -- Low-fare carrier Southwest Airlines Co.
reported its 48th consecutive profitable quarter Monday
despite heavy losses at other air carriers.

Southwest's first-quarter earnings of $24 million, or 3
cents per share were an increase of 14.3 percent over the
year-ago period, the Dallas-based carrier said. In the
first three months of 2002, Southwest's $21.4 million in
net income was its lowest quarterly profit since fourth
quarter 1994.

The latest results were in line with estimates of analysts
surveyed by Thomson First Call.

Revenue rose 7.5 percent to $1.35 billion from $1.26
billion.

``Although our financial performance has been exceptional
relative to the airline industry as a whole, Southwest,
too, has been severely impacted by the lingering effects of
the 2001 terrorist attacks and the war in Iraq,'' said
James F. Parker, company vice chairman and chief executive
officer. ``Although our revenues were showing signs of
recovery during fourth quarter 2002 and into first quarter
2003, those trends were disrupted.

``Since the war began, bookings for second quarter 2003
have softened further,'' he said. ``Currently, we expect
only modest revenue growth, if any, compared to last year's
second quarter revenue of $1.47 billion, which included $36
million in additional revenue related to a reduction in
estimated refunds and exchanges included in air traffic
liability.''

The last time Southwest Airlines lost money, in the first
quarter of 1991, the United States was also at war with
Iraq. Financial performance of the U.S. airline industry
had begun suffering soon after the August 1990 invasion of
Kuwait by Iraq.

The downturn that followed through 1993 marked the
industry's worst period to that point, with some $13
billion in net losses.

The current war adds to an already glum environment for air
travel that has sent two major carriers -- United Airlines
and US Airways -- into bankruptcy court. US Airways emerged
from court protection late last month.

After the Sept. 11 terrorist attacks, U.S. airlines
furloughed tens of thousands of employees, grounded part of
their capacity and still lost record amounts of money --
$7.7 billion in 2001 and an estimated $10 billion or more
last year.

Last week, Delta Air Lines reported a wider first-quarter
loss and gave a gloomy forecast days after Continental and
Northwest Airlines both reported hefty losses. Delta lost
$466 million, while Continental lost $221 million in the
first quarter and Northwest lost $396 million.

http://www.nytimes.com/aponline/business/AP-Earns-Southwest.html?ex=1051931789&ei=1&en=3bcda9972f321260



HOW TO ADVERTISE
---------------------------------
For information on advertising in e-mail newsletters
or other creative advertising opportunities with The
New York Times on the Web, please contact
onlinesales@xxxxxxxxxxx or visit our online media
kit at http://www.nytimes.com/adinfo

For general information about NYTimes.com, write to
help@xxxxxxxxxxxx

Copyright 2003 The New York Times Company

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]