Shock! Horror! Airline turns in a profit!

United States: No-frills carrier stays in the black despite massive industry losses

The United States no-frills carrier Southwest Air has shocked large parts of the aviation industry by declaring a profit at a time when most others are making losses.

The carrier made US$24 million during the first three months of the year – an increase of some 14 per cent – while its traffic grew by five per cent over the same period.

What is more, Southwest is planning to grow by a further four per cent this year, and is believed to have several aircraft on order for next year. By way of contrast, United States carriers are expected to have collectively lost some US$3.5 billion over the last three months.

However, the carrier’s chief executive James Parker said it had also been affected by the hostilities in Iraq and the growing spectre of the SARS virus. He said in a statement: “Although our financial performance has been exceptional relative to the airline industry as a whole, Southwest, too, has been severely impacted by the lingering effects of the 2001 terrorist attacks and the war in Iraq.”