How Did Southwest Perform Operationally In April?

+21.60%
Upside
29.19
Market
35.50
Trefis
LUV: Southwest Airlines logo
LUV
Southwest Airlines

Southwest Airlines (NYSE:LUV) performed as per the industry standard in April, recording improvements in all key metrics, thanks to the timing of the Easter weekend. The company suffered a major blow in Q1. In comparison, Q2 could see better numbers as macro conditions the world over see a positive reversal.

The company grew its capacity by 7.6% y-o-y in April, bringing the year to date capacity up 5%. Furthermore, the occupancy increased marginally by 60 bps. Additionally, passenger traffic grew at a notable pace of 8.4%. As mentioned previously, the figures were bumped up on the back of increased air travel owing to the timing of the Easter weekend.

Based on these results and current trends, the company continues to expect its second quarter 2017 operating revenue per ASM (RASM) to increase in the one to two percent range, as compared with second quarter 2016.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Southwest Airlines

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