Southwest posts first quarter record operating revenues of US$4.9bn

Southwest Airlines’ total operating revenues increased 1.2%, year-over-year, to a first quarter record US$4.9bn, driven largely by first quarter record passenger revenues of US$4.4bn. Southwest reported net income of US$351m, operating income of US$658m and operating margin of 13.5%. On a unit basis, operating revenues declined 2.8%, year-over-year, which was in line with the Company’s expectations. Demand for Southwest’s low fares remained strong and the fare environment remained competitive, resulting in a 2.6% decline in passenger revenue yield. Based on current bookings and improved yield trends, the Company expects positive year-over-year RASM in second quarter 2017.