DALLAS (WBAP/KLIF News) – While many industries are still dealing with the financial impact of the COVID-19 pandemic, Southwest Airlines reported a $116 million profit for the first quarter of 2021.
The Dallas-based carrier is the first major U.S. airline to do so.
The company credits federal dollars for helping it ease the storm amid the pandemic, even as airlines across the board are seeing stronger bookings.
Southwest said without the funding from the extended Payroll Support Program under the Consolidated Appropriations Act, it would have lost $1 billion in the quarter due to salaries, wages and benefits expenses for its employees.
In a statement released Thursday, Southwest CEO Gary Kelly said the company is grateful for the federal help.
“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,” he said. “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.”
Southwest’s report proved beneficial for investigators, shares rose 2% in trading before the opening bell Thursday.
Click here to read the carrier’s full report.
The airline industry has received about $64 billion in cash and low-interest loans to help stay afloat since the pandemic hit in March of 2020.
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