Southwest Airlines maintains its profit forecast as bookings surpass costs

Southwest Airlines maintains its profit forecast as bookings surpass costs

April 29, 2022: -Southwest Airlines reiterated its forecast for second-quarter and 2022 profits as bookings and fares outpace a jump in labor, fuel, and airport costs.

The Dallas-based carrier expected second-quarter revenue growth of 8% to 12% more than the $5.9 billion it brought in during the same quarter of 2019, even though it planned to fly 7% less than three years ago.

Southwest’s shares increase over 2% in morning trading on Thursday, outpacing other airlines and the broader market.

The profit forecast echoes from United Airlines, Delta Air Lines, and American Airlines and points to strong travel demand and a willingness of few consumers to pay up for seats despite the sharpest spike in consumer prices since the early 1980s.

For the whole year, Southwest said it is maintaining plans to fly 4% less than in 2019. Airlines are comparing results with 2019 to show progress in their pandemic recoveries.

Carriers have been forced to be p back to capacity as staffing shortages exacerbated flight cancellations and delays in the previous year. JetBlue Airways on Tuesday said it was slashing its growth plan for 2022 by as much as 5% from a previous project to expand, flying up to 15%, sending shares tumbling.

Southwest swung to a $278 million net loss for the initial time, down from a $116 million profit a year, on $4.7 billion in revenue as it struggled with a surge in omicron infections.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts | Make Profit Not Waste | Stephen Pratt

Supply chain leaders, including VPs, often find themselves making bets with unknown financial consequences. Having started with largely infeasible plans generated by deterministic “one-number” planning systems, compounded by unexpected supply or demand disruptions, they are forced into last-minute adjustments to meet operational and financial goals.

Intelichain | Revolutionary Supply Chain Planning Solutions | Roei Aviram

Unsurprisingly, today’s supply chain faces numerous issues, including sustainability, technology, global economic and political instability, talent management, and supply chain resilience. Advanced forecasting algorithms and predictive analytics are used in supply chain management to help organizations of all sizes make better decisions by providing insights into what’s going on in their business at any given moment and predicting future trends.

GAINS | Empowering Companies to Make the Right Decision | Bill Benton

Ensuring the right products are in the right place and at the right time is critical for companies also dealing with supply chain constraints and a high degree of variability. Uncertainty has become the name of the game and the only way to effectively optimize inventory through continuous, data-driven assessments, planning, and decision-making.

Extensiv | Creating the Future of Omnichannel Fulfillment | Sheridan Richey

Food Huggers, a consumer brand that designs products to reduce waste at home, may be in an enviable position now but before they found Extensiv Order Manager, managing booming orders and staying on top of inventory was a huge operational challenge. The business has inventory spread across multiple geographically distributed warehouses, with orders received via multiple sales channels, including Shopify storefronts and Amazon.

Southwest Airlines maintains its profit forecast as bookings surpass costs