Southwest net losses fall further to $231 million in first quarter 2024

Southwest Airlines has posted a net loss of $231 million in the first quarter of 2024, slumping further from its net loss of $159 million in 2023's first quarter. It reported a loss per share of 39 cents, down further from its loss per share of 27 cents in the first quarter of 2023. ""While it is disappointing to incur a first quarter loss, we exited the quarter with healthy profits and margins in the month of March,"" said Southwest president CEO Bob Jordan. ""We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations."" Its operating revenues increased from $5.7bn in 2023's first quarter to $6.3bn in this year's first quarter. In addition, its debt remained flat YoY at $8bn, and its liquidity was at $11.5bn at the quarter's end. Jordan added: ""Our first quarter 2024 revenue performance, while shy of our prior aspirations, resulted in record first quarter operating revenues... The sequential improvement was driven by an acceleration in managed business revenues as well as benefits from network adjustments, which started in earnest with the March schedule. While costs remain a headwind, we are realising benefits from our ongoing cost reduction actions and remain focused on enhancing productivity and controlling discretionary spending."" Jordan said the company is further optimising its network to address ""underperforming markets"" to improve its financial position. He said: ""The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025. We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules."" As a result of these network optimisations, it has closed operations at Bellingham International Airport, Cozumel International Airport, Houston's George Bush Intercontinental Airport, and Syracuse Hancock International Airport. It will also implement ""cost control initiatives"" such as limiting its hiring and offering voluntary time off programs to staff. It now expects to end the year with 2,000 fewer members of staff compared with the end of 2023. ""We are focused on achieving our financial prosperity goals and creating value for our shareholders, while we adjust to changes in our aircraft delivery plans, customer travel patterns and preferences, higher fuel prices, and other cost pressures,"" said Jordan. Its second quarter estimates expects its revenue per available seat mile (RASM) to be down 1.5% to 3.5% YoY and its cost per available seat mile (CASM) to be up 8-9% YoY. Additionally, it updated its full year guidance for its available seat miles (ASM), which is expected to be up circa 4% YoY, with its previous estimate being up circa 6%. Its capital spending for the year has also been updated to be around $2.5bn, with previous estimate being between $3.5-4bn. Southwest will hold its investor day in September.