Saturday, November 27, 2021
49.7 F
Fort Worth

US airline bailout helps Southwest post $116 million profit

🕐 2 min read

by AP News.

DALLAS (AP) — Southwest Airlines is the first major U.S. airline to report a profit since the pandemic started, as federal payroll aid helped boost the company to net income of $116 million in the first quarter.

Without the federal money, Southwest would have lost $1 billion in the quarter.

Southwest also echoed rivals in saying that demand for travel is continuing to improve. The airline said Thursday that bookings for leisure trips within the United States have been improving each week since mid-February.

“While the pandemic is not over, we believe the worst is behind us, in terms of the severity of the negative impact on travel demand,” Chairman and CEO Gary Kelly said in a statement.

Southwest is benefitting more from the pickup in leisure travel because its biggest rivals — American, Delta and United — depend more on business travel and long-haul international flying, both of which remain deeply depressed.

Kelly also expressed gratitude for federal payroll aid — the airline industry has received $64 billion in cash and low-interest loans over the past 13 months to help cover labor costs.

Without Southwest’s share of that aid and other temporary items, Southwest would have lost $1.72 per share. That result was still slightly better than Wall Street feared. The average estimate of 13 analysts surveyed by Zacks Investment Research was for a loss of $1.82 per share.

Southwest posted revenue of $2.05 billion, slightly above the analysts’ prediction of $2.03 billion.

Shares of Dallas-based Southwest rose 2% in trading before Thursday’s opening bell. At Wednesday’s closing price, the shares had more than doubled in the past 12 months and gained 33% since the beginning of 2021, beating the 11% increase in the S&P 500 index.

___

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on LUV at https://www.zacks.com/ap/LUV

Related Articles

Our Digital Sponsors

Latest Articles

Fort Worth Business Press Logo
This advertisement will close in
00
Months
00
Days
00
Hours
00
Minutes
00
Seconds
seconds..
Click here to continue to Fort Worth Business Press

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

This field is for validation purposes and should be left unchanged.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate