The airline went over 11 years without a losing quarter
And 47 consecutive years of annual profits
before the epidemic. But Southwest said it posted a profit in March, and expects to make money the rest of this year.
It is another sign of the unprecedented massive losses in the US aviation industry due to the pandemic Finally it’s over
Even if the epidemic itself is not over yet.
Southwest reported a loss of $191 million in the first quarter, well below the $1 billion loss it posted in the first quarter of 2021. It posted $4.7 billion in sales — more than double what Southwest brought in a year ago, which is also nearly identical to expectations. But that’s still about 9% less than the revenue Southwest earned during the first quarter of 2019, before the pandemic started.
Sales were also slightly lower than in the fourth quarter of 2021, when the company I posted a modest profit
. The first quarter is traditionally the period when there is the least air travel in the United States, and the fourth quarter is the busiest. This year’s first quarter results were also affected by an increase in Covid cases early in the year due to the Omicron variant, and higher fuel prices due to the Russian invasion of Ukraine.
But Southwest is less affected than its competitors by higher fuel prices. It has long-term fuel purchase contracts that partly protect it from price hikes. I paid an average of $2.30 a gallon for jet fuel in that period American (AAL)
And united (UAL)
And delta (DA)
Airlines paid between $2.79 to $2.88 per gallon in the same period. Southwest said it expects fuel contracts to be worth about $1.4 billion in the second quarter, given current pricing expectations.
shares Southwest (love)
3% profit in pre-market trading.