DALLAS People need money to fly.
Airlines need people to make money.
And Dallas-based Southwest Airlines has manged to turn a loss last year into a $205 million profit this year.
We've gained a significant share of the U.S. travel market without adding any capacity, said Southwest CEO Gary Kelly.
Southwest intends to add bigger planes to its fleet and save money at the same time by using larger versions of the jets it already flies.
That alone is worth $100-200 million a year in cost savings, assuming you keep the same revenue, Kelly said.
The Wright Amendment, which restricts travel from Dallas Love Field, still has four years of life before it goes away completely. But as the restrictions disappear, Southwest passengers can book tickets directly to distant destinations, and that's making money, too.
We generated about $59 million this quarter with passengers that were flying beyond the Wright Amendment states, Kelly said. That we could not sell before the compromise was reached, and that business is up about 40 percent over last year.
In spite of Southwest's improved bottom line, it doesn't necessarily translate into a rosier economy as a whole, according to Kelly. He said his airline is just ideally suited to prosper in these tough economic times.
E-mail bharris@wfaa.com
