Southwest Airlines Reports Third Quarter 2023 Net Profit of $193 million or $0.31 per Diluted Share
Southwest Airlines has reported a third quarter net income of $193 million or $0.31 per diluted share on a year-over-year increase in revenue of 4.9 percent to 6.5 billion. At September 30, 2023, the carrier had total liquidity of $12.7 billion.
On Thursday (October 27, 2023) Southwest Airlines reported their third quarter 2023 financial results for the period ending September 30, 2023. The carrier reported a third quarter net profit of $193 million or $0.31 per diluted share on a year-over-year increase in revenue of 4.9 percent to a record $6.5 billion. Southwest’s Q3 Revenue per available seat mile (RASM) decreased 6.8 percent compared to the same period last year to 14.77 cents, while cost per available seat mile (CASM) declined 2.2 percent to 14.51 cents. Costs excluding fuel (CASM-ex) increased 5.7 percent compared to Q3 2022 to 10.97 cents, while costs excluding fuel, special items and profit sharing expenses (CASM-X) increased year-over-year by 4.4 percent to 10.67 cents. At September 30, 2023, Southwest had total liquidity of $12.7 billion and total outstanding debt of $8.0 billion.
In Thursday’s announcement, Southwest Airlines’ President and Chief Executive Officer, Bob Jordan, said,
“We are proud to be flying our full fleet and completing the restoration of our network. As we move into 2024, we are slowing our ASM growth rate to absorb current capacity, mature development markets, and optimize schedules to current travel patterns. We are in the midst of planning for 2024 and are focused on operational excellence and driving out inefficiencies, increasing productivity, improving reliability, and returning our margins back to historical levels. And, this week, we secured a cost-effective order book with The Boeing Company ("Boeing") to continue the modernization of our fleet and provide plenty of flexibility to adjust our growth up or down to match the dynamic environment. We are also pleased that we reached a tentative agreement for our fantastic Flight Attendants.
“I am very optimistic about the outlook for Southwest Airlines. We have a legendary Culture, driven by our Warrior Spirit. We have a proven and durable business model which produces efficiency-driven cost advantages. We strive to maintain the best domestic network, with market leadership in large and fast-growing metro areas. We have the most friendly and flexible policies, an unmatched loyalty program, and a committed and engaged Customer base. All this, combined with our financial discipline, has allowed us to maintain an industry-leading fortress balance sheet during the most challenging period in aviation history.
“Without a doubt, our greatest strength is our superb Employees. They do an outstanding job day-in and day-out delivering value and Hospitality for our Customers. I would like to thank them for their relentless dedication and hard work."
Founded in 1971, Dallas-based Southwest Airlines (NYSE: LUV) has distinguished itself by offering exemplary customer service delivered by more than 71,000 team members at 121 airports across 11 countries. The airline carried over 126 million guests during 2022. Southwest offers a robust point-to-point network with a strong presence across leisure and business markets. During peak travel seasons, the airline operates more than 4,000 daily departures to 120 destinations across the U.S. and 10 additional countries. Southwest also continues to develop tangible steps toward achieving carbon neutrality by 2050, including offering Customers the opportunity to help the airline offset carbon emissions.
Source: Southwest Airlines