Soutwest posts a fairly large quarterly loss.

April 16, 2009 – 6:49 pm – No Comment

Southwest is one of the few airlines that has been profitable in the past few years. However, figures came out today for the discount airline that lumps it in the same category as all the others.

The company posted a $91 million first quarter loss, a far cry from its net income of $34 million in the first quarter of 2008.

It began offering early-out programs to employees and implemented a hiring freeze as well as freezing the salaries of some of the top managers.

Dallas-based Southwest attributed its weak first quarter to a special charge of $71 million related to the company’s fuel hedge portfolio and a general fall in demand related to the deteriorating economy. Chief Executive Officer Gary Kelly also reiterated that Southwest has suspended growth plans and is focusing on boosting cash reserves.

“Our first-quarter 2009 financial results are disappointing, but not surprising given the current economic environment,” said Kelly. “We face the toughest revenue environment in our history. A rapid weakening in passenger demand during first quarter, particularly among business travelers, led to our first-quarter net loss. Although competitively strong and financially resilient, we are not immune to the challenges the worldwide recession is having on air travel.”

It is a bit sad to see Southwest go through such a difficult time too. Unlike other airlines, Southwest has stuck to its guns, even when fuel prices were outrageous. It never charged for a checked bag or soda…

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