Southwest Airlines Co. (NYSE: LUV) as the Company announced on March 10, 2017, its February 2017 and year-to-date FY17

Active Wall St. blog coverage looks at the headline from Southwest Airlines Co. (NYSE: LUV) as the Company announced on March 10, 2017, its February 2017 and year-to-date FY17 preliminary traffic statistics. Southwest Airlines reported a 1.1% increase in terms of Revenue of Passenger Miles (RPMs) in February 2017 to reach 8.7 billion RPMs. The net Available Seat Miles (ASMs) observed a 1.2% increase to hit the 11.0 billion mark for February 2017. Register with us now for your free membership and blog access at:

One of Southwest Airlines' competitors within the Regional Airlines space, GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL), released on February 28, 2017, its preliminary fourth quarter and financial year 2016 results. AWS will be initiating a research report on GOL Linhas Aereas Inteligentes in the coming days.

Today, AWS is promoting its blog coverage on LUV; touching on GOL. Get all of our free blog coverage and more by clicking on the link below:

Breaking down the Announcement

Revenue Passengers Carried

Net revenue passengers carried were 8.86 million for February 2017 compared to the 8.76 million in February 2016, representing a 1.2% increase since last year. The year-to-date performance for FY17 stood at 18.25 million revenue passengers carried, which was higher than the FY16 year-to-date performance of 17.66 million, representing a 3.3% increase.

Enplaned Passengers

Southwest Airlines reported net Enplaned passenger for February 2017 to be 10.66 million, while the figure stood at 10.59 million for February 2016; a 0.7% advance since last year. The number of enplaned passengers surged by 2.2% for year-to-date in FY17, hitting the 21.99 million mark, against 21.52 million enplaned passengers for FY16.

Load Factor

The Load Factor for the Company remained constant at 79% for February 2017 compared to February 2016, while it advanced by 2.7% since last month, i.e. January 2017's figure of 76.3%. The Load Factor for year-to-date performance in FY17 was 77.6%, declining by 0.6 points

Trips Flown

The number of trips flown by the Company declined slightly by 0.7% from 97.82 thousand trips for February 2017 to 97.16 thousand trips in February 2016. The Company's number of trips increased by 2% for FY17 YTD of 205.59 thousand trips compared to 201.48 thousand trips in the year ago same period.

Company Estimations

On the basis of February 2017 flat load factor performance of 79.0%, the Company expects its Q1 FY17 operating revenue per ASM (RASM) to decline within the 2%-3% range against the reported revenues of $4.83 billion for Q1 FY16. The Company leveraged the lower number of trips flown in February 2017 to heavy rainfall in California and better-than-expected February trip completion rate, which eventually led to a revised RASM. The net RPMs for FY17 year-to-date performance stood at 18.04 billion, observing a 2.9% increase in last year's performance of 17.53 billion. The ASMs for the Company was 23.26 billion for FY17 year-to-date performance, which was 3.8% higher than 22.42 billion ASMs for FY16 year-to-date.

Company Future Prospects

Southwest Airlines, post the February 2017 traffic statistics release, inaugurated on March 11, 2017, service from Denver International Airport to Belize City, Belize. Southwest Airlines is the only Company to offer nonstop services between Denver and Belize. The flight is expected to be accretive to net trips flown once it moves to Saturday/Sunday service on the June 04, 2017, schedule, which operates through August 14, 2017.

The Company announced on January 05, 2017, that it has agreed to bring low fares and exceptional Customer service from Southwest Airlines to Cincinnati and Grand Cayman, beginning June 04, 2017. Southwest Airlines also refocused its investment strategy, where it invested heavily throughout Florida to meet customer demands. Additionally, the Company plans to significantly increase its international flight schedule for South Florida to a total of eight international nonstop destinations. Expected to begin on June 04, 2017, these new international trips are set to boost revenue growth and contribute towards delivering greater value to shareholders.


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