Southwest joined Delta Air Lines Inc. in posting huge fourth-quarter profits. Although American Airlines was the only airline that reported a loss, Boeing said that American has bought two new 777-300 extended range aircraft that have a total maximum list price of $568.2 million as part of its expansion plan.
Southwest Airlines reported that fourth-quarter 2010 earnings rose 13 percent, to $131 million. Southwest executives expressed optimism about the upward trend continuing saying that passenger bookings through March look strong and business travelers are returning to the airlines for travel now that the recession is easing.
Southwest Airlines Co. also reported that it will expand its capacity by 5 to 6 percent this year by adding additional flights. Southwest will expand its network further with the $1.4 billion purchase of AirTran Airways, which will give Southwest destinations in Mexico and the Caribbean, Southwest also is ordering new, larger planes that could fly to Hawaii. Southwest recently revised its Boeing delivery schedule, resulting in three additional aircraft to be delivered in 2011.
Delta Air Lines today reported that their net income for the final quarter of 2010 is $158 million.This is a $383 million Improvement over the same time period last year.
Delta's net income for the entire year of 2010 was $1.4 billion, compared to their net income for the prior year which was $593 million.
"Our 2010 results are among the best in Delta's history. They would not have been possible without the dedication and determination of Delta employees worldwide and we are pleased we will pay more than $300 million in profit sharing for 2010," said Richard Anderson, Delta's chief executive officer. "These results are a direct reflection of the success of our merger, cost discipline and debt reduction strategy and give us momentum to deal with the rising fuel prices we face in 2011."
