Southwest Airlines will add service to Paine Field in
Everett, Wash., north of Seattle, when the airport opens to commercial aircraft
this year, executives said in an earnings call. The carrier has committed to as
many as five flights a day from the airport. Chairman and CEO Gary Kelly said they
will complement Southwest's more than 40 flights per day from Seattle-Tacoma
International Airport. Alaska
Airlines and United also have announced flights at Paine Field.
The five daily departures were the only remaining slots under
the airport's current plans, and Southwest wanted to ensure a presence there,
Kelly said. "There is a significant pool of customers north of the city
that if they have a more convenient flight option, I think they will take that,"
he said. "With Sea-Tac, we are constrained, and we want to increase our
presence in the Seattle metro area, so this is a really good opportunity for
us."
In addition, Southwest is making progress on
federal approval to fly to Hawaii later this year, Kelly said. Following a
year in which it switched to a new
reservations system, the carrier's focus in 2018 otherwise will focus largely
on the basics, he said. "Unlike the past seven years, we have no major
strategic initiatives that are landing in 2018," Kelly said. "That
allows a more intense focus on running a great airline, offering outstanding
customer service and controlling our costs."
Southwest's passenger revenue increased 2.5 percent year
over year in the fourth quarter to $4.74 billion. Its average fare declined 2.7
percent to $140.60. CFO and EVP Tammy Romo said strong demand pushed load
factor up to a quarterly record of 85 percent. Traffic rose 2.6 percent, and
capacity increased 2 percent.
Southwest reported a net income of $1.89 million for the
quarter, compared with $522 million in the fourth quarter of 2016. The results
included a $1.4 billion benefit from the recent U.S. tax legislation. For the
full year, net income was $3.49 billion, up 55.4 percent year over year.
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