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Southwest profit up 29.6pc to US$503 million as sales growth slips 2.6pc
DALLAS-BASED Southwest Airlines third quarter net profit increased 29.6 per cent year on year to US$503 million while quarterly revenue increased 2.6 per cent to $5.3 billion.
"We are very pleased to report another quarter of strong profits and margins, particularly considering the impact of the unprecedented natural disasters," said Southwest chairman and CEO Gary Kelly.
"As a result of Hurricanes Harvey and Irma and the earthquakes, we cancelled 5,000 flights which reduced revenues by $100 million in third quarter 2017.
Third quarter operating expenses decreased 0.2 per cent to $4.4 billion, or 3.2 per cent on a unit basis year on year.
Excluding special items in both periods, total third quarter 2017 operating expenses increased 5.6 per cent to $4.4 billion, or 2.5 per cent on a unit basis year on year.
Third quarter fuel costs were $2 per gallon, including $0.31 per gallon in unfavourable cash settlements from wrongway hedging, compared with $2.02 per gallon in third quarter, which included $.56 per gallon in such losses.
The company ended third quarter with 687 aircraft, reflecting the delivery of six new Boeing 737-800s, six second hand Boeing 737-700s, and nine new Boeing 737 MAX 8 aircraft, as well as the retirement of the Boeing 737-300 completed in September.
"We are very pleased to report another quarter of strong profits and margins, particularly considering the impact of the unprecedented natural disasters," said Southwest chairman and CEO Gary Kelly.
"As a result of Hurricanes Harvey and Irma and the earthquakes, we cancelled 5,000 flights which reduced revenues by $100 million in third quarter 2017.
Third quarter operating expenses decreased 0.2 per cent to $4.4 billion, or 3.2 per cent on a unit basis year on year.
Excluding special items in both periods, total third quarter 2017 operating expenses increased 5.6 per cent to $4.4 billion, or 2.5 per cent on a unit basis year on year.
Third quarter fuel costs were $2 per gallon, including $0.31 per gallon in unfavourable cash settlements from wrongway hedging, compared with $2.02 per gallon in third quarter, which included $.56 per gallon in such losses.
The company ended third quarter with 687 aircraft, reflecting the delivery of six new Boeing 737-800s, six second hand Boeing 737-700s, and nine new Boeing 737 MAX 8 aircraft, as well as the retirement of the Boeing 737-300 completed in September.
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