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In 1Q17, $LUV recorded a 12.6% rise in expenses related to salaries, wages, and benefits of $1.73Bil, and another 8.2% increase in fuel and oil costs of $922MM. As of March 31, 2017, the Southwest Airlines had $3.5Bil in cash and short-term investments, and a fully available unsecured revolving credit line of $1Bil.
$LUV stated that any opportunities on the capital side would be more along the lines of fleet, in terms of opportunities to continue to renew the fleet. The order book is currently at a very manageable level. The company believes there are opportunities to modernize and invest in the business.
$LUV's unit revenues were up 1.9% in 4Q17 and just under 1% for full year 2017. The company is estimating 1-2% unit revenue growth on strong load factors and bookings for 1Q18 and the goal is to achieve positive unit revenue comparisons again for 2018.
$LUV reported net income of $1.9Bil or $3.18 per share in 4Q17 compared to $522MM or $0.84 per share in 4Q16. 4Q17 net income was positively impacted by a $1.4Bil tax benefit due to tax reform legislation. Total operating revenues grew 3.9% to $5.3Bil, driven largely by passenger revenues of $4.7Bil.
Lower load factor and withering PRASM plague the fleet-heavy United as the US airline industry enters the year-end quarter. Though American, Delta and Southwest reported huge number of flight cancellation during 3Q17 on the Hurricane impact, all held steady on their numbers with nominal losses. $AAL $DAL $UAL $LUV $ALK
As it posted 3Q17 results, $LUV continues to expect the benefits from the new reservation system capabilities to produce incremental improvements in pre-tax results of about $200MM in FY18. Based on trends and current bookings, Southwest expects 4Q17 RASM to rise 1.5%from last year.
Airline carrier $LUV saw 3Q17 total operating revenues rise 2.6% year-over-year to $5.3Bil, driven largely by third quarter record passenger revenues of $4.7Bil despite an approximate $100MM reduction as a result of the natural disasters. Net income was $503MM or $.84 per diluted share, up from last year's $388MM or $.62 per share.
$LUV shared plans to begin selling tickets in 2018 for service to Hawaii and also announced its intention to launch an application process for Federal Aviation Administration authorization for Extended Operations (ETOPS). Service details are to be announced at a later date.
$LUV announced the promotion of Linda Rutherford to SVP, Chief Communications Officer. With the promotion, Rutherford will report to EVP, Corporate Services Bob Jordan, while continuing to work directly with Chairman and CEO Gary Kelly on communication efforts and culture activities.
Aviation company $LUV has promoted Ryan Martinez to the post of Managing Director, Investor Relations, effective September 11. Martinez has held various leadership roles in the Finance Department of Southwest, after joining the company in 2006. He will be succeeding Marcy Brand, who has chosen to assume a different post in the Finance Department.
$LUV's 2Q17 operating expenses spiked 9.4% YoY to $4.5Bil, or 4.1% on a unit basis. Additionally, during the quarter, the company recorded lease termination costs of $8MM resulting from the acquisition of two of its Boeing 737-300 Classic aircraft previously under operating leases. For 3Q17, $LUV expects unit costs to be up in the 2-3% range YoY.
World's largest low-cost carrier $LUV's 2Q17 earnings plunged 9%, hit by higher wages and operating expenses. Net income plunged to $746MM or $1.23 per share from the year ago earnings of $820MM or $1.28 per share. Conversely, revenue surged 7% to $5.7Bil. On an adjusted basis, earnings spiked 4% to $1.24 per share.