The profit of Southwest Airlines exceeds expectations of improving pricing capabilities

On January 30 (Reuters) -The fourth quarter profit of the US budget airline Southwest Airlines surpassed Wall Street estimates on Thursday. This is a helpful travel demand and improved ticket.

The airline also predicts that the proxy pricing power in the first quarter is better than the expected unit income (RASM).

Airlines across the United States increased their fares after surplus capacity. The surplus capacity was proposed last summer, because people expect that demand has surged, forcing airlines to provide discounts and sacrifice profit margins.

Tickets in December rose at the fastest speed within 21 months.

According to the data compiled by LSEG, this has helped report to Southwest report. As of December 31, the adjustment after the fourth quarter of December 31 is 56 cents per share, and the average estimated value of analysts is 44 cents Essence

Its operating income increased by 1.6 % over the same period last year to $ 6.93 billion.

On the Investor Day in September, the airline unveiled a plan, including vacation packages and aircraft sales leases to improve its income and liquidity. At that time, the industry and labor and aircraft maintenance costs expanded.

“Although we still have a lot of jobs to do,” said the CEO Bob Jordan, “said, but we are very glad to improve the tactical plan faster than expected, and our progress still has a constructive demand environment and the industry and the industry. Further support of the background.

The company predicts that compared with analysts expected to increase by 2.62 %, RASM will increase by about 5 % to 7 % in the first quarter.

It believes that because expensive labor contracts are the first to be the brunt, each seat (excluding fuel) has increased by 7 % to 9 % each time.

Southwest Airlines has the All -Boeing Team and is shocked by the delay of jet delivery of the planned manufacturer. He is expected to get the 38 737 largest aircraft from Planemaker in 2025.

(Shivansh TiWary report in Bangladesh; editor of Shinjini Ganguli)