In years past, Southwest Airlines has been known to consistently make a profit. However, Southwest wasn’t able to keep up in the economic downturn and the end of hedged fuel prices. Then the airline saw three quarters of losses, but no more!
Southwest announced today that it made $54 million during the second quarter this year. This is far less than the $321 million they made during the same time last year, but better than being in the red.
Of course, like most of the world economy, Southwest is not fully in the clear. They are still taking a careful approach to the near future. Southwest chairman and chief executive officer Gary Kelly points out that, “demand for business travel remains weak, and we continue to stimulate traffic with more discounted and promotional fares.” He isn’t confident that Southwest will see a profit for the third quarter. Southwest is cutting about 4% or 1,400 employee positions through early-out offers, hoping to keep the airline profitable.
To compare, Continental Airlines posted a loss of $213 million, American Airlines posted a $390 million loss and United Airlines posted a $28 million profit. Additional airlines should be posting their second quarter results in the next day or so.Image: gTarded