A Southwest Airlines jet leaves Midway Airport in Chicago, Illinois.
Scott Olson | Getty Images
Southwest Airlines On Thursday, the company announced that bookings for vacation travel will continue to rise and that breakeven point “or better” will be reached by June.
The Dallas-based airline posted net income of $ 116 million in the first quarter, compared to a loss of $ 94 million a year ago. The first quarter profit came from more than $ 1 billion in federal aid that offset labor costs.
Southwest’s shares rose 1% in premarket trading after trading lower before reporting results.
Meanwhile, American Airlines posted a net loss of $ 1.25 billion, the fifth straight quarterly loss. The Fort Worth, Texas-based airline, as well as its major airline competitors delta and United, was forced to forego much of the business and international travel revenues that they had long relied on.
American sales were just over $ 4 billion, down nearly 53% from more than $ 8.5 billion a year ago.
Airline executives have seen improvements in bookings as vaccinations increase and tourist attractions reopen.
Southwest said it is tightening its schedule and that it will fly a little less this June than the same month of 2019.
Southwest’s revenue fell to $ 2.05 billion, a decline of more than 51% year over year and slightly below Wall Street analysts’ expectations of $ 2.07 billion.
Here’s how Southwest performed compared to Wall Street’s expectations in the first quarter, based on Refinitiv’s average estimates:
- Adjusted result: A loss of $ 1.72 per share versus an expected loss of $ 1.85 per share
- revenue: $ 2.05 billion versus expected $ 2.07 billion in sales
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