Southwest Airlines Company (NASDAQ:LUV) has confirmed that its first quarter profit has almost tripled to $453 million. The Chief Executive Officer of the Southwest Airlines, Gary C Kelly, who also serves as the president and chairman of the company was very happy about the results and expects more growth in the booking trends.
Southwest Airlines has been performing consistently in the recent past. The last year earnings of this quarter for the company were exceptional too, and hence there was an immense pressure on the company to make good profits this quarter of the year as well. However, for the April month, Gary C Kelly expects a dip of 2 percent in the revenue.
The net income of the Southwest Airlines is expected to be $453 million and it account for 66 cents a share, which is higher than the expected estimate of 65 cents a share. This info has been retrieved from Thomson Reuters I/B/E/S.
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CEO of Southwest Airlines, Gary Kelly stated in a press release that the demand had increased for bookings and that the traffic from Southwest Airlines’ new Dallas routes showed a great increase of 145.5 percent from a year ago.
Southwest Airlines is considered to be a low cost carrier and its performance in the first quarter has been appreciated by the experts. However, the company is expecting a decline of 1 to 2 percent in the unit costs, owing to the payment of $2 per gallon for fuel this quarter.
The $1 billion stock buyback program of Southwest Airlines is in consideration and the company expects to accomplish it by May. Southwest Airlines will also buy the last $80 million in authorized shares. The company wassaid to have already paid $81 million in the form of dividends.
Southwest Airlines has recently added San Jose, Costa Rica to its flying map last month and there are high chances that the company would add Puerto Vallarta and Mexico in June and Belize City in October. Southwest Airlines’ new international terminal will be inaugurated at the Houston Hobby International Airport in the month of October.
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