Southwest Airlines' 2Q profit slips 2 percent

DALLAS (AP) — Southwest Airlines got a small break at the fuel pump during the second quarter, and that helped offset flat revenue and higher labor costs.

The airline paid 16 cents a gallon less for fuel than it did a year ago, and that added up to $88 million.

Southwest said Thursday that its quarterly profit fell 6 percent, but the results were still a bit better than analysts expected.

The airline, which carries more passengers in the U.S. than any other, saw a 2 percent drop in revenue per mile. CEO Gary Kelly said that demand was hurt by automatic federal spending cuts that reduced government travel and by higher taxes, but he said third-quarter trends were encouraging.

The company's revenue per mile — a closely watched figure in the industry — has been about 3 percent higher this month than in July 2012, and bookings for August and September "also look solid," he said.

Southwest officials declined to comment Thursday on the investigation into an accident this week at New York's LaGuardia Airport.

The National Transportation Safety Board is trying to determine why the nose gear of a Southwest Boeing 737 collapsed upon landing Monday night, causing the plane to skid off the runway with its nose on the ground. Several passengers and flight attendants were treated for injuries.

Southwest shares fell during morning trading but recovered to finish up 5 cents at $13.81. They have gained 35 percent for the year, about the same as the Arca index of airline stocks.

The stocks have rallied as investors grow more confident about sustained profits in an industry that lost billions last decade. Mergers have reduced competition, the airlines have curtailed flights to push up fares, and they've added revenue from a flock of fees for various services.

Southwest Airlines Co., which owns AirTran Airways, said that second-quarter net income was $224 million, or 31 cents per share, down 2 percent from $228 million, or 30 cents per share, a year ago.

Southwest said that stripping away special items — mostly changes in the value of fuel-hedging bets — it would have earned 38 cents per share in the latest quarter. That's a penny better than analysts surveyed by FactSet were expecting.

Revenue increased less than 1 percent to $4.64 billion. Southwest said that was a second-quarter record, but it fell short of analysts' forecasts of $4.66 billion.

Traffic increased about 3 percent, and the average one-way fare rose less than a buck — to $151.23. The rate of fare increases has slowed from 2011, when airlines raised prices quickly to offset higher fuel costs.

Southwest and AirTran added flights in the quarter, so the average plane was 81.6 percent full, down slightly from 81.9 percent a year earlier. But capacity in June hit a record 85 percent as the summer vacation season hit full stride.

Lower oil prices early in the April-to-June quarter helped Southwest save 6 percent on fuel, its biggest expense, and the company cut maintenance spending by 3 percent, or $10 million. But labor, the second-biggest expense, rose 6 percent, or $76 million.

Kelly said the company was on schedule to repaint AirTran planes in Southwest colors and combine the two carriers by the end of next year. Southwest will complete the update of its reservations system next year, allowing it to handle international flights, he said.

___

Follow David Koenig at http://www.twitter.com/airlinewriter

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Southwest Airlines' 2Q profit slips 2 percent

DALLAS (AP) — Southwest Airlines got a small break at the fuel pump during the second quarter, and that helped offset flat revenue and higher labor costs.

The airline paid 16 cents a gallon less for fuel than it did a year ago, and that added up to $88 million.

Southwest said Thursday that its quarterly profit fell 6 percent, but the results were still a bit better than analysts expected.

The airline, which carries more passengers in the U.S. than any other, saw a 2 percent drop in revenue per mile. CEO Gary Kelly said that demand was hurt by automatic federal spending cuts that reduced government travel and by higher taxes, but he said third-quarter trends were encouraging.

The company's revenue per mile — a closely watched figure in the industry — has been about 3 percent higher this month than in July 2012, and bookings for August and September "also look solid," he said.

Southwest officials declined to comment Thursday on the investigation into an accident this week at New York's LaGuardia Airport.

The National Transportation Safety Board is trying to determine why the nose gear of a Southwest Boeing 737 collapsed upon landing Monday night, causing the plane to skid off the runway with its nose on the ground. Several passengers and flight attendants were treated for injuries.

Southwest shares fell during morning trading but recovered to finish up 5 cents at $13.81. They have gained 35 percent for the year, about the same as the Arca index of airline stocks.

The stocks have rallied as investors grow more confident about sustained profits in an industry that lost billions last decade. Mergers have reduced competition, the airlines have curtailed flights to push up fares, and they've added revenue from a flock of fees for various services.

Southwest Airlines Co., which owns AirTran Airways, said that second-quarter net income was $224 million, or 31 cents per share, down 2 percent from $228 million, or 30 cents per share, a year ago.

Southwest said that stripping away special items — mostly changes in the value of fuel-hedging bets — it would have earned 38 cents per share in the latest quarter. That's a penny better than analysts surveyed by FactSet were expecting.

Revenue increased less than 1 percent to $4.64 billion. Southwest said that was a second-quarter record, but it fell short of analysts' forecasts of $4.66 billion.

Traffic increased about 3 percent, and the average one-way fare rose less than a buck — to $151.23. The rate of fare increases has slowed from 2011, when airlines raised prices quickly to offset higher fuel costs.

Southwest and AirTran added flights in the quarter, so the average plane was 81.6 percent full, down slightly from 81.9 percent a year earlier. But capacity in June hit a record 85 percent as the summer vacation season hit full stride.

Lower oil prices early in the April-to-June quarter helped Southwest save 6 percent on fuel, its biggest expense, and the company cut maintenance spending by 3 percent, or $10 million. But labor, the second-biggest expense, rose 6 percent, or $76 million.

Kelly said the company was on schedule to repaint AirTran planes in Southwest colors and combine the two carriers by the end of next year. Southwest will complete the update of its reservations system next year, allowing it to handle international flights, he said.

___

Follow David Koenig at http://www.twitter.com/airlinewriter

View the original article here

Dreamliner: Airlines Told To Remove 787 Beacons

The US aviation regulator has advised airlines using Boeing's troubled 787 Dreamliner to remove the existing emergency beacons, following a fire on a flight at London's Heathrow airport.

The Federal Aviation Administration (FAA) published an airworthiness directive advising all carriers to inspect or replace the safety device, made by Honeywell.

The move comes after investigators examined the cause of a fire on an Ethiopian Airlines 787 in early July.

The directive goes farther than the FAA indicated last week, when it said airlines should inspect the units on 787s for pinched wires in the casing and evidence of heat or moisture.

In early January, a Japanese plane caught fire in Boston

Boeing advised airlines last week to inspect or remove the device, known as an emergency locator transmitter or ELT.

A team from Britain's Air Accidents Investigations Branch (AAIB) looked at a number of components during their examination of the plane at Heathrow.

The investigation included the ELT, which was positioned in the upper rear part of the aircraft, near to the spot where the fire broke out on July 12.

The fire on the Ethiopian plane was one of the most recent problems to occur for Boeing's flagship next generation aircraft.

Problems have plagued instrumentation, battery circuits and some engine items.

The January problems were centred on mysterious battery pack problems

The world's Dreamliner fleet was grounded earlier this year after lithium-ion batteries overheated on the planes.

Although it has spent thousands of man-hours investigating the cause, Boeing still has not poinpointed the problem.

The ELT overheating is unconnected to the lithium-ion battery woes.

Despite the problems with the Dreamliner, Boeing posted larger than expected second-quarter profits on Wednesday as deliveries of commercial planes such as the 737 and 777 rose.

Boeing's net income rose 13% to $1.09 billion (£711m), or $1.41 per share. During the same period last year it earned $967m (£631m), or $1.27 per share. Revenue rose 9% to $21.82bn.

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Dreamliner: Airlines Told To Remove 787 Beacons

The US aviation regulator has advised airlines using Boeing's troubled 787 Dreamliner to remove the existing emergency beacons, following a fire on a flight at London's Heathrow airport.

The Federal Aviation Administration (FAA) published an airworthiness directive advising all carriers to inspect or replace the safety device, made by Honeywell.

The move comes after investigators examined the cause of a fire on an Ethiopian Airlines 787 in early July.

The directive goes farther than the FAA indicated last week, when it said airlines should inspect the units on 787s for pinched wires in the casing and evidence of heat or moisture.

In early January, a Japanese plane caught fire in Boston

Boeing advised airlines last week to inspect or remove the device, known as an emergency locator transmitter or ELT.

A team from Britain's Air Accidents Investigations Branch (AAIB) looked at a number of components during their examination of the plane at Heathrow.

The investigation included the ELT, which was positioned in the upper rear part of the aircraft, near to the spot where the fire broke out on July 12.

The fire on the Ethiopian plane was one of the most recent problems to occur for Boeing's flagship next generation aircraft.

Problems have plagued instrumentation, battery circuits and some engine items.

The January problems were centred on mysterious battery pack problems

The world's Dreamliner fleet was grounded earlier this year after lithium-ion batteries overheated on the planes.

Although it has spent thousands of man-hours investigating the cause, Boeing still has not poinpointed the problem.

The ELT overheating is unconnected to the lithium-ion battery woes.

Despite the problems with the Dreamliner, Boeing posted larger than expected second-quarter profits on Wednesday as deliveries of commercial planes such as the 737 and 777 rose.

Boeing's net income rose 13% to $1.09 billion (£711m), or $1.41 per share. During the same period last year it earned $967m (£631m), or $1.27 per share. Revenue rose 9% to $21.82bn.

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View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Dreamliner: Airlines Told To Remove 787 Beacons

The US aviation regulator has advised airlines using Boeing's troubled 787 Dreamliner to remove the existing emergency beacons, following a fire on a flight at London's Heathrow airport.

The Federal Aviation Administration (FAA) published an airworthiness directive advising all carriers to inspect or replace the safety device, made by Honeywell.

The move comes after investigators examined the cause of a fire on an Ethiopian Airlines 787 in early July.

The directive goes farther than the FAA indicated last week, when it said airlines should inspect the units on 787s for pinched wires in the casing and evidence of heat or moisture.

In early January, a Japanese plane caught fire in Boston

Boeing advised airlines last week to inspect or remove the device, known as an emergency locator transmitter or ELT.

A team from Britain's Air Accidents Investigations Branch (AAIB) looked at a number of components during their examination of the plane at Heathrow.

The investigation included the ELT, which was positioned in the upper rear part of the aircraft, near to the spot where the fire broke out on July 12.

The fire on the Ethiopian plane was one of the most recent problems to occur for Boeing's flagship next generation aircraft.

Problems have plagued instrumentation, battery circuits and some engine items.

The January problems were centred on mysterious battery pack problems

The world's Dreamliner fleet was grounded earlier this year after lithium-ion batteries overheated on the planes.

Although it has spent thousands of man-hours investigating the cause, Boeing still has not poinpointed the problem.

The ELT overheating is unconnected to the lithium-ion battery woes.

Despite the problems with the Dreamliner, Boeing posted larger than expected second-quarter profits on Wednesday as deliveries of commercial planes such as the 737 and 777 rose.

Boeing's net income rose 13% to $1.09 billion (£711m), or $1.41 per share. During the same period last year it earned $967m (£631m), or $1.27 per share. Revenue rose 9% to $21.82bn.

(function(d){ var js, ref = d.getElementsByTagName('script')[0]; js = d.createElement('script'); js.id = 'outbrainjs'; js.async = true; js.src = "//widgets.outbrain.com/outbrain.js"; ref.parentNode.insertBefore(js, ref); }(document));

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Dreamliner: Airlines Told To Remove 787 Beacons

The US aviation regulator has advised airlines using Boeing's troubled 787 Dreamliner to remove the existing emergency beacons, following a fire on a flight at London's Heathrow airport.

The Federal Aviation Administration (FAA) published an airworthiness directive advising all carriers to inspect or replace the safety device, made by Honeywell.

The move comes after investigators examined the cause of a fire on an Ethiopian Airlines 787 in early July.

The directive goes farther than the FAA indicated last week, when it said airlines should inspect the units on 787s for pinched wires in the casing and evidence of heat or moisture.

In early January, a Japanese plane caught fire in Boston

Boeing advised airlines last week to inspect or remove the device, known as an emergency locator transmitter or ELT.

A team from Britain's Air Accidents Investigations Branch (AAIB) looked at a number of components during their examination of the plane at Heathrow.

The investigation included the ELT, which was positioned in the upper rear part of the aircraft, near to the spot where the fire broke out on July 12.

The fire on the Ethiopian plane was one of the most recent problems to occur for Boeing's flagship next generation aircraft.

Problems have plagued instrumentation, battery circuits and some engine items.

The January problems were centred on mysterious battery pack problems

The world's Dreamliner fleet was grounded earlier this year after lithium-ion batteries overheated on the planes.

Although it has spent thousands of man-hours investigating the cause, Boeing still has not poinpointed the problem.

The ELT overheating is unconnected to the lithium-ion battery woes.

Despite the problems with the Dreamliner, Boeing posted larger than expected second-quarter profits on Wednesday as deliveries of commercial planes such as the 737 and 777 rose.

Boeing's net income rose 13% to $1.09 billion (£711m), or $1.41 per share. During the same period last year it earned $967m (£631m), or $1.27 per share. Revenue rose 9% to $21.82bn.

(function(d){ var js, ref = d.getElementsByTagName('script')[0]; js = d.createElement('script'); js.id = 'outbrainjs'; js.async = true; js.src = "//widgets.outbrain.com/outbrain.js"; ref.parentNode.insertBefore(js, ref); }(document));

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