Southwest Airlines Co. has announced a first-quarter net loss of $231 million, equating to $0.39 per diluted share. Despite these losses, the company achieved a record operating revenue of $6.3 billion.
Bob Jordan, President and Chief Executive Officer, stated, “While it is disappointing to incur a first quarter loss, we exited the quarter with healthy profits and margins in the month of March. We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations. I want to thank our more than 74,000 Employees for their continued Warrior Spirit to maintain a reliable and resilient operation as we adapt to aircraft delivery constraints and adjust to slower than planned growth for this year and next.”
Southwest saw a record number of passengers in the first quarter of 2024, driven by adjustments in their network and acceleration in managed business revenues. However, rising costs remain a challenge, countered by ongoing cost reduction strategies and newly ratified labor agreements.
The airline faces hurdles with delayed aircraft deliveries from Boeing, impacting operational plans for 2024 and 2025. These delays necessitate rapid strategic adjustments to maintain reliable service.
Further changes include the cessation of operations at four airports and optimization of network routes to boost financial results. Southwest is also focusing on customer experience enhancements and strategic initiatives aimed at improving profitability.
Fuel costs for the quarter were below expectations due to favorable hedging outcomes, with fuel efficiency improving thanks to newer, more efficient aircraft. The company continues its robust fuel hedging strategy to manage costs effectively.
Looking ahead, Southwest anticipates a challenging year but remains committed to optimizing operations and financial strategies to achieve long-term financial goals. The company’s detailed plans will be discussed during their upcoming Investor Day in September.
