Sector: Industrials|Industry: Airlines|Market Cap: $20.16B|Employees: 74.8K
Southwest Airlines Co. operates a major passenger airline providing scheduled air transportation in the United States and near-international markets. The company utilizes a point-to-point route system, low fares, and its unique Hospitality to attract customers. Southwest's primary revenue streams are from passenger air travel and ancillary services. They have a strong domestic market position and a growing presence in near-international destinations.
The company reported record full year 2023 revenue performance with operating revenues of $26.1 billion, driven by healthy leisure demand and continued yield strength combined with record ancillary revenue, loyalty program revenue, and passengers carried. The company's 2022 results were somewhat impacted by the COVID-19 pandemic.
Operating expenses for 2023 increased by $3.1 billion, or 13.5 percent, compared with 2022. Approximately 60 percent of the operating expenses increase was due to higher Salaries, wages, and benefits expense and approximately 10 percent was due to higher Maintenance, materials, and repairs expense.
Fuel and oil represented approximately 24.0 percent of the Company's operating expenses for 2023. Fuel and oil expense for 2023 remained high, primarily due to higher capacity in response to consumer demand. The Company's fuel costs per gallon, including fuel tax, decreased from $3.10 in 2022 to $2.89 in 2023.