Southwest Airlines reports ‘excellent’ 3Q2018 performance, total operating revenue increase of 5.1%

    Southwest Airlines reported (25-Oct-2018) an “excellent” 3Q2018 performance, with total operating revenues increased 5.1% year-on-year. Southwest‘s operating revenue per RASM increased 1.2% year-on-year, driven primarily by a passenger revenue yield of 2.3% and offset by a decreased load factor of 0.9ppts to 83.9%.

    • Southwest Airlines chairman of the board and CEO Gary C Kelly stated: “Unit revenue trends are stable and have recovered nicely from first half 2018”, adding: “Based on our second half 2018 revenue trends, we are well-positioned for year-over-year unit revenue growth in 2019, with easier year-over-year comparisons in first half”.
    • The airline expects an increase of 1%-2% for 4Q2018 RASM, based on current bookings and yield trends, compared to 4Q2017 RASM of USD13.88 cents. It is also “particularly pleased” with the performance of new revenue management tools, having adopted the ‘New Revenue Standard’ on 01-Jan-2018;
    • Southwest expects an immaterial impact to its 4Q2018 and annual 2018 year-on-year RASM trends as a result of the new standard. [more – original PR] [more – original PR – II]