SWA 2005 profit: $548,000,000
01-18-2006, 07:55 AM
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SWA 2005 profit: $548,000,000
Congrats my LUVly friends!
LATEST NEWS
Dallas Business Journal - 10:44 AM CST Wednesday
Southwest profitable again in 2005
Margaret Allen
Staff Writer
Rising fuel costs and a $24 million unexpected charge by the federal Transportation Security Administration didn't derail profitability for 2005 or for the fourth quarter at Southwest Airlines Co.
Reporting earnings Wednesday, Dallas-based Southwest (NYSE: LUV) announced it continues its record of profitability, now at 33 consecutive years and unique among the major U.S. carriers.
The company had 2005 net income of $548 million, or 67 cents a share. That's up from $313 million, or 38 cents a share, in 2004.
Fourth-quarter net income of $86 million, or 10 cents a share, was up from $56 million, or 7 cents a share, for the fourth quarter in 2004.
While Southwest's famous fuel-hedging program continues to work its magic and hold down the airline's costs, the carrier still saw its jet fuel costs rise 38.8 percent in the fourth quarter.
The quarterly earnings did not beat the expectations of analysts surveyed by Thomson First Call, who were predicting 13 cents a share.
"I am pleased to report a significantly improved earnings performance for the fourth quarter and full year 2005, which represented our 33rd consecutive year of profitability," said CEO Gary Kelly, in a statement released by the company. "Despite the totally unexpected TSA security fee assessment and the 38.8 percent increase in our hedged fuel costs per gallon, our fourth quarter 2005 earnings were up over 40 percent."
The airline said it plans to vigorously contest the surprise TSA charge assessed this month, which the airline said was made without notice or without opportunity to protest. The fee was for additional 2005 federal airport security expenses assessed retroactively, said Southwest.
The fee increased fourth quarter 2005 unit costs 5.6 percent, said Southwest. Full year unit costs, excluding fuel, declined 1.5 percent, said the airline.
With higher customer demand industry-wide and reductions in capacity among competitors, Southwest saw record fourth-quarter load factors of 69.6 percent, Kelly said in the statement.
Southwest also saw record fourth-quarter 2005 operating revenue of $1.99 billion compared to $1.65 billion a year ago. Kelly described the company's air fare increases as "modest," saying Southwest was able to boost unit revenues 11.7 percent, yet remain a low-fare leader.
For the year, Southwest's operating revenue rose 16.1 percent to $7.6 billion from $ 6.5 billion in 2004.
The first quarter 2006 outlook remains strong, he indicated, but said it will be impacted by a **** in the timing of the Easter holiday from March into April.
"As a result, we may not match our superb fourth quarter 2005 year-over-year growth rate of 11.7 percent in first-quarter 2006," said Kelly.
Web site: www.southwest.com
[email protected] |214-706-7119
LATEST NEWS
Dallas Business Journal - 10:44 AM CST Wednesday
Southwest profitable again in 2005
Margaret Allen
Staff Writer
Rising fuel costs and a $24 million unexpected charge by the federal Transportation Security Administration didn't derail profitability for 2005 or for the fourth quarter at Southwest Airlines Co.
Reporting earnings Wednesday, Dallas-based Southwest (NYSE: LUV) announced it continues its record of profitability, now at 33 consecutive years and unique among the major U.S. carriers.
The company had 2005 net income of $548 million, or 67 cents a share. That's up from $313 million, or 38 cents a share, in 2004.
Fourth-quarter net income of $86 million, or 10 cents a share, was up from $56 million, or 7 cents a share, for the fourth quarter in 2004.
While Southwest's famous fuel-hedging program continues to work its magic and hold down the airline's costs, the carrier still saw its jet fuel costs rise 38.8 percent in the fourth quarter.
The quarterly earnings did not beat the expectations of analysts surveyed by Thomson First Call, who were predicting 13 cents a share.
"I am pleased to report a significantly improved earnings performance for the fourth quarter and full year 2005, which represented our 33rd consecutive year of profitability," said CEO Gary Kelly, in a statement released by the company. "Despite the totally unexpected TSA security fee assessment and the 38.8 percent increase in our hedged fuel costs per gallon, our fourth quarter 2005 earnings were up over 40 percent."
The airline said it plans to vigorously contest the surprise TSA charge assessed this month, which the airline said was made without notice or without opportunity to protest. The fee was for additional 2005 federal airport security expenses assessed retroactively, said Southwest.
The fee increased fourth quarter 2005 unit costs 5.6 percent, said Southwest. Full year unit costs, excluding fuel, declined 1.5 percent, said the airline.
With higher customer demand industry-wide and reductions in capacity among competitors, Southwest saw record fourth-quarter load factors of 69.6 percent, Kelly said in the statement.
Southwest also saw record fourth-quarter 2005 operating revenue of $1.99 billion compared to $1.65 billion a year ago. Kelly described the company's air fare increases as "modest," saying Southwest was able to boost unit revenues 11.7 percent, yet remain a low-fare leader.
For the year, Southwest's operating revenue rose 16.1 percent to $7.6 billion from $ 6.5 billion in 2004.
The first quarter 2006 outlook remains strong, he indicated, but said it will be impacted by a **** in the timing of the Easter holiday from March into April.
"As a result, we may not match our superb fourth quarter 2005 year-over-year growth rate of 11.7 percent in first-quarter 2006," said Kelly.
Web site: www.southwest.com
[email protected] |214-706-7119
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