Southwest Airlines witness record earnings in 2016

Published on : Friday, January 27, 2017

southwest-airlinesSouthwest Airlines is the busiest commercial air carrier at McCarran International Airport and though it reported a 2.6% drop in net income during the fourth quarter, it has actually witnessed a substantial annual earning in the year 2016.

 

This Dallas-based airline voyages about 200 flights per day at the Las Vegas airport.

 

Also, it offers about 40% of the flights here. The total operating revenues had reached $20.4 billion. Alongside it, there has been a sustained demand for low fares and superior customer service, according to Gary Kelly who is the CEO of Southwest Airlines.

 

He said that the profit margins of this company are quite strong.

 

Also, their return on investment capital was a near-record 30%. For the quarter that concluded on 31st December, Southwest reported that their net income was $522 million, marking a 84% share on a revenue of $5.08 million, Therefore, the earnings per share increased since the number of outstanding shares fell.

 

Kelly also said that the older models its Boeing 737 fleet’s aircrafts were starting to retire.

 

This has increased the depreciation of the costs.

 

Southwest has expanded its global presence with new service to three cities in Cuba. It has also introduced new routes from Los Angeles International Airport to Mexico, Los Cabos, Cancun and Puerto Vallarta.

 

Southwest had filed an application with the U.S. Department of Transportation to serve Owen Roberts International Airport that is located in Grand Canyon.

 

It had announced plans to commence service to Cincinnati in June. It has abandoned services in Akron-Canton in Ohio and Dayton.

 

In the last year, this airliner had added one flight every week in its Las Vegas schedule. However, it has no nonstop international routes from McCarran.

 

Costs are expected to be relaxed by the fourth quarter of 2017, with the new contracts in place.

 

 

 

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