There is a plane at Chicago O'Hare.
Southwest Airlines reported a net profit of $277 million in the third quarter of 2019. The $277 million set a record for the airline, making it the largest quarterly profit in the airline's history, due to the strong demand for air travel this summer
The Dallas-based carrier brought in a record $6.2 billion in operating revenue in the third quarter. The numbers reported by Southwest and many other carriers make the assumption that the travel industry has made a full recovery from the Pandemic.
Bob Jordan, Chief Executive Officer at Southwest, said that they were pleased to report solid third quarter profits and record third quarter revenues.
Southwest had $6.2 billion in operating revenue in the third quarter. The carrying of passengers, freight, and other streams of revenue made up the lion's share of the revenue.
The carrying of 34.5 million passengers with a revenue per available seat mile of 15.85 was up from the pre-pandemic 14.32 in 2019. The increase in leisure demand contributed to the load factor.
Southwest continues to operate well. The completion rate for the quarter was 99%.
Southwest Airlines wants to end the year with a bang. Despite lower demands when compared to the summer season, leisure and business demand remain strong, and we expect revenue trends to improve from third quarter to fourth quarter 2022, according to Jordan.
Southwest plans to increase capacity by 10 percent and 14 percent in the first and second quarters of the year, respectively. The airline plans to be cautious with the capacity adjustments as there is uncertainty about the delivery dates of the Boeing planes. Jordan said that they expect aircraft delivery delays to continue into the next decade.
In an effort to drive economic benefits through cost savings from more fuel-efficient aircraft, the company expects to retire a total of 26 Boeing737-700 aircraft in the next five years. Due to the delayed Max deliveries, previous guidance had planned to retire three more aircraft.
Southwest has received a total of 40 Boeing planes so far this year and another 31 are expected to be delivered this quarter. Due to Boeing's delay, a portion of the carrier's deliveries are expected to shift out of 2022. The company is expected to have almost 800 aircraft by the end of the year.
Hagl grew up in Idaho. He obtained a degree in Aviation Management from Utah Valley University. Chase is a flight attendant in Charleston, South Carolina and is the primary representative for Breeze Airways. He has been in the aviation industry for four years and has worked in areas such as agriculture application, customer service, maintenance, and flight ops. Chase likes astronomy and flying in his free time.
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