Southwest Airlines reports USD388m in Q3 2016 net income

Southwest Airlines Co. (NYSE: LUV) has reported USD388 million or USD0.62 per diluted share in the third quarter 2016, compared to USD584 million, or USD0.88 per diluted share in the third quarter of 2015, the company said.

The company reported operating income of USD695 million, resulting in an operating margin of 13.5 percent. Operating cash flow was USD856 million in the third quarter 2016.

The company said in 2017, it plans to slow its available seat mile growth (ASM) rate to less than four percent, year-over-year, with approximately two points of the increase relating to domestic growth.

The company reported total operating revenues were USD5.1 billion, compared with third quarter 2015, when total operating revenues declined 3.4 percent on a 4.2 percent increase in available seat miles.

Third quarter 2016 total operating expenses increased 8.6 percent to USD4.4 billion, and increased 4.2 percent on a unit basis, as compared with third quarter 2015.

The company said it ended third quarter 2016 with 714 aircraft in its fleet, reflecting third quarter 2016 delivery of 11 new Boeing 737-800s, and the retirement of 16 Boeing 737 classic aircraft, including the last -500 aircraft in the company´s fleet. The company said it plans to end this year with 723 aircraft, with 2016 available seat mile growth in the five to six percent range, year-over-year.

Southwest Airlines Co. (NYSE: LUV) is a US airline, headquartered in Dallas, Texas, and operating more than 3,900 departures a day during peak travel season. Southwest Airlines has scheduled services to 98 destinations in the United States and seven additional countries with service to three airports in Cuba expected to begin later this year, subject to governmental approvals.