newswatcher
18th Apr 2002, 14:05
From the BBC:
"US budget carrier Southwest Airlines managed to stay in profit during the first three months of the year, shrugging off the post-11 September air travel slump. The company said profits for the January to March period came in at $21.4m (£13.7m), 82% down on the same period the previous year.
The figures, which contrast with recent hefty losses at full-service US carriers, confirm the resilience of the no-frills airline sector in the face of the downturn. Southwest chief executive James Parker said that while he expected profits for the next three months to come in "well below" last year's levels, the company's earnings would "steadily improve" this year.
Southwest, the US' largest no-frills carrier, also managed to make money during the final three months of last year, in contrast with other major US airlines. It is the only major carrier so far to report a profit for the first three months of the year.
While the company has also been hit by a decline in passenger numbers, its lower cost structure has enabled it to stay in profit. Southwest's lower costs are attributed in part to its policy of flying only one model of aircraft, the Boeing 737.
The company was buoyed during the second half of last year by a $235m tranche of goverment aid, it said on Wednesday. The handout was part of a wider package of emergency assistance aimed at staving off bankruptcies in the air travel sector in the wake of 11 September.
Southwest, the model for European no-frills carriers such as Easyjet and Ryanair, bucked industry trends in February when it announced plans to take on 4,000 new staff this year. Many other major US airlines have announced mass lay-offs since the World Trade Center attacks."
"US budget carrier Southwest Airlines managed to stay in profit during the first three months of the year, shrugging off the post-11 September air travel slump. The company said profits for the January to March period came in at $21.4m (£13.7m), 82% down on the same period the previous year.
The figures, which contrast with recent hefty losses at full-service US carriers, confirm the resilience of the no-frills airline sector in the face of the downturn. Southwest chief executive James Parker said that while he expected profits for the next three months to come in "well below" last year's levels, the company's earnings would "steadily improve" this year.
Southwest, the US' largest no-frills carrier, also managed to make money during the final three months of last year, in contrast with other major US airlines. It is the only major carrier so far to report a profit for the first three months of the year.
While the company has also been hit by a decline in passenger numbers, its lower cost structure has enabled it to stay in profit. Southwest's lower costs are attributed in part to its policy of flying only one model of aircraft, the Boeing 737.
The company was buoyed during the second half of last year by a $235m tranche of goverment aid, it said on Wednesday. The handout was part of a wider package of emergency assistance aimed at staving off bankruptcies in the air travel sector in the wake of 11 September.
Southwest, the model for European no-frills carriers such as Easyjet and Ryanair, bucked industry trends in February when it announced plans to take on 4,000 new staff this year. Many other major US airlines have announced mass lay-offs since the World Trade Center attacks."