Southwest Airline's Future

Southwest Airlines

Southwest Airlines and the Airline Industry have had their ups and downs, from fluctuating fuel cost to questionable promotional programs to terrorist acts. Although Southwest Airlines has delt with a variety of discipline backs, one such as 9/11, they have go on to be a profitable company.

Southwest companys operations results consolidated lucre income for 1999 was $474.4 million ($.89 per share) as compared to 1998 was $433.4 million ($.82 per share) an enlarge of 9.4 per centum. The Operating income increase 14.3 part for 1999 to $781.6 million. (Southwest Financial Report 1999)

Southwest operating revenues increase 13.7 portion in 1999 primarily due to 13.5 pct increase in passenger revenues. The increase in passenger revenues was due to a 9.3 percent increase in revenue passengers carried and a 16.1 percent increase in revenue passenger miles (RPMs). The 16.1 percent increase in RPMs in 1999 exceeded the 11.2 cent increase available in seat miles (ASMs); this resulted in an increase in load mover from 66.1 percent in 1998 to 69.0 percent in 1999. The 1999 ASM growth resulted from the shed light on addition of 32 aircraft during the year. (Southwest Financial Report 1999)

Freight revenues increased 4.6 percent in 1999 compared to 1998 due to added capacity and modest rates increases. other(a) revenues increased 31.0 percent in 1999 compared to 1998.



Approximately 54 percent of the increase was due to increased revenues from sales of flight component credits to marketing partners in the companys Rapid Rewards frequent greenback program

and 33 percent of the increase was due to an increase in charter revenue. (Southwest Financial Report 1999)

Southwest Airlines 3

Operating expenses in 1999 were $3,954.0 million, compared to $3,480.4 million in 1998, an increase of 13.6 percent, compared to the 11.2 percent increase in capacity. Operating expenses per ASM increased 2.2...

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