Southwest Airlines reported a 2013 net profit of $754 million, up 79.1% over net income of $421 million in 2012 and its 41st consecutive full-year net profit, according to ATW.
The Dallas-based low-cost carrier’s (LCC) 2013 revenue rose 3.6% year-over-year to $17.7 billion while expenses decreased 0.3% to $16.42 billion, producing an operating profit of $1.28 billion, more than doubling an operating profit of $623 million in 2012.
Chairman, president and CEO Gary Kelly said in a statement that Southwest is “on track with our AirTran integration, achieving approximately $400 million in annual net pre-tax synergies in 2013, as planned.” He noted that 17 of AirTran’s 52 Boeing 737-700s have been converted to Southwest branding and Southwest service has replaced the 13 AirTran 717-200s transitioned to Delta Air Lines in 2013.
“Nine more 717s were removed from active service at year end 2013 and the remaining 66 717s are scheduled to be removed from the AirTran network by the end of this year and transitioned to Delta through 2015,” Kelly said.
He added that the remaining 35 AirTran 737-700s “are scheduled to be converted to Southwest this year … We are pleased with the rapid improvement of our developing markets as we convert AirTran routes into Southwest and optimize our combined networks.” Southwest plans to “complete the AirTran integration and retire the brand by the end of 2014,” Kelly said.
Southwest’s 2013 traffic increased 1.4% year-over-year to 104.35 billion RPMs on a 1.7% lift in capacity to 130.34 billion ASMs, producing a load factor of 80.1%, down 0.2 point. Passenger yield rose 2.4% to 16.02 cents.
Southwest achieved a 13.1% return on invested capital for the full year before taxes and excluding special items. The company earned a 2013 fourth-quarter net profit of $212 million, widened over $78 million in net income in the 2012 December quarter. Fourth-quarter revenue increased 6.1% year-over-year to $4.43 billion.
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