Southwest Sees Record Profit in Second Quarter

Southwest Airlines announced financial results for the second quarter of 2016.

The airline reported a net income of $757 million, excluding special items, a record for the second quarter of a year for the carrier. The figure was a 9.6% increase over the second quarter net income of 2015.

“As with first quarter 2016, record operating revenues and low fuel prices were the primary drivers of our record second quarter performance,” said Gary Kelly, the airline’s CEO. “Year-over-year, our second quarter 2016 operating revenue growth outpaced our available seat mile (ASM) growth, producing positive second quarter 2016 operating unit revenue (RASM) growth, despite a very competitive fare environment.“

The airline also set a record for second-quarter revenue, reporting $5.4 billion, a year-over-year increase of 5.3%.

Southwest’s passenger revenue per available seat mile, or Prasm, however, decreased by 3.5%, down to 12.83 cents.

Passenger traffic in the second quarter increased by 6%, up to 32.707 billion revenue passenger miles, or RPMs, from 30.858 billion in the second quarter of 2015.  Meanwhile, capacity increased by 4.8% to 38.225 billion available seat miles, or ASMs, from 36.476 billion ASMs last year.

Passenger load factor in the second quarter increased by 1 percentage point, up to 85.6% from 84.6% in the same period last year.

(Photo: Accura Media Group)