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Southwest Airlines Q1 net income $116 million

Christian Fernsby |
Southwest Airlines reported its first quarter 2021 financial results.

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First quarter net income of $116 million, or $.19 per diluted share, driven by a $1.2 billion offset of salaries, wages, and benefits expenses from the extended Payroll Support Program (PSP Extension) proceeds under the Consolidated Appropriations Act, 2021.

Excluding special items, first quarter net loss of $1.0 billion, or $1.72 loss per diluted share.

First quarter operating revenues of $2.1 billion, down 51.5 percent year-over-year.

Ended first quarter with liquidity of $15.3 billion, well in excess of debt outstanding of $10.8 billion.

Gary C. Kelly, Chairman of the Board and Chief Executive Officer, stated, "In first quarter, we benefited from temporary cost relief as a result of PSP Extension proceeds, which offset a portion of salaries, wages, and benefits expenses, resulting in first quarter 2021 net income of $116 million, or $.19 per diluted share.

"We remain grateful for this much-needed federal payroll support on the heels of substantial losses in 2020, and ongoing non-GAAP losses in first quarter 2021.

"The payroll support from the federal government has allowed Southwest to preserve its 50-year history without involuntary layoffs or furloughs, an achievement unprecedented in the U.S. airline industry.

"Excluding the benefit of PSP Extension proceeds and other special items, our first quarter 2021 net loss was $1.0 billion, or $1.72 loss per diluted share.

"While the pandemic is not over, we believe the worst is behind us, in terms of the severity of the negative impact on travel demand.

"Vaccinations are on the rise, and COVID-19 hospitalizations in the United States are down significantly from their peak in January 2021.

"As a result, we are experiencing steady weekly improvements in domestic leisure bookings, which began in mid-February 2021."

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