Southwest Reports Lower Numbers, Citing Hurricanes and Earthquake

By Jesse Sokolow on 26 October 2017
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DSC_0495Southwest Airlines announced financial results for the third quarter of 2017. The airline posted lower profits, saying it had cancelled some 5,000 flights due to the powerful storms that hit the U.S. and Caribbean, resulting in a write-off of $100 million as well as a severe earthquake in the region.

The Dallas-based carrier reported net income of $503 million, up 29.6% over the same period in 2016, which was $388 million. Excluding special items, however, net income for the quarter was $528 million, down 9.3% from $582 million in Q3 2016.

The airline’s third quarter operating revenue was $5.3 billion, a year-over-year increase of 2.6%.

Southwest’s passenger revenue per available seat mile, or Prasm, decreased by 1.4%, down to 12.15 cents.

Passenger traffic in the third quarter increased by 2.5%, up to 33.128 billion revenue passenger miles, or RPMs, from 32.315 billion in the third quarter of 2016.  Meanwhile, capacity also increased, up 3.1% to 39.053 billion available seat miles, or ASMs, from 37.881 billion ASMs last year.

Passenger load factor in the third quarter dropped 0.5 percentage points, down to 84.8% from 85.3%.

Looking ahead to the fourth quarter, the airline said it expects passenger revenue per available seat mile to increase 1.5%.

(Photo: Accura Media Group)

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