Southwest Posts Low Traffic for Jan - Analyst Blog

By
A A A

Top notch passenger airline Southwest Airlines Co. ( LUV ) witnessed a drop in traffic and capacity for Jan 2013, reflecting lesser passengers traveled and trips undertaken.

The company's traffic - measured in revenue passenger miles (RPMs) - was 7.25 billion for Jan 2013, down 1.7% from 7.37 billion recorded a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) went up marginally by 0.5% to 9.98 billion.

The load factor or percentage of seats filled by passengers fell to 72.7% from 74.3% in Jan 2012. Passenger revenue per available seat mile (PRASM), however, improved about 2.0% year over year.


Another leading U.S. passenger carrier Delta Air Lines ( DAL ) displayed flat traffic growth for the same period with RPMs at 13.9 billion.

Dallas, Texas Southwest Airlines - operating along with other prominent players such as United Continental Holdings Inc. ( UAL ) and JetBlue Airways Corporation ( JBLU ) - currently holds a Zacks Rank #2, implying a Buy rating.

The U.S. low-cost carrier reported its fourth quarter financial results on Jan 24. Quarterly adjusted earnings of 9 cents per share slivered past the Zacks Consensus Estimate of 7 cents.    The results remained at the same level with that of the prior-year quarter. Revenues moved up 1.6% year over year to $4,173 million but missed the Zacks Consensus Estimate of $4,214 million.

Looking ahead, we believe that the company remains committed to sustain its brand and operational excellence via its cost-cutting measures, fleet rightsizing, and the addition of new and attractive destinations. Delta's Evolve retrofit program, steady capacity growth, All-New Rapid Rewards and several steps to enhance ancillary revenues will position it advantageously in the coming days.



DELTA AIR LINES (DAL): Free Stock Analysis Report

JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report

SOUTHWEST AIR (LUV): Free Stock Analysis Report

UNITED CONT HLD (UAL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: DAL , JBLU , LUV , UAL

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

39,460,791
  • $15.88 ▼ 0.69%
22,923,973
  • $14.42 ▼ 5.01%
18,896,433
  • $6.16 ▼ 3.90%
18,863,800
  • $8.76 ▲ 14.66%
18,433,553
  • $6.83 ▼ 4.21%
18,079,330
  • $3.9501 ▼ 1.25%
16,723,509
  • $2.07 ▲ 1.97%
15,410,411
  • $43.18 ▲ 1.31%
As of 3/4/2015, 11:43 AM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com