Southwest Airlines reported net profits of $367 million during the second quarter of 2024, a stark decline of 46.3% compared to the same period last year, as announced on Thursday.
Bob Jordan, the company’s president and CEO, acknowledged that various external and internal factors negatively impacted performance, resulting in outcomes that fell short of their expectations.
Total revenue for the airline group between April and June reached $7.354 billion, reflecting a 4.5% increase year-over-year. However, expenses surged. Salary costs were up 7.6% to $2.999 billion, while fuel expenses rose by 14% to $1.599 billion. Additionally, maintenance costs surged by 29.2%, amounting to $350 million, and airport fees increased by 11.3%, totaling $511 million.
Looking at the first half of the year, Southwest’s profit dipped to $137 million, down 73.9%, while revenue climbed by 7.4% to $13.683 billion.
During the second quarter, the airline reported a load factor of 82.6%, which is a slight decrease of 0.8%. Meanwhile, offered seat miles increased by 8.6% to 46.250 billion, and revenue passenger miles rose by 7.6%, reaching 38.211 billion.
For further details on airline industry performance, you can visit the International Air Transport Association.
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