After going through a capability scarcity for many of 2019 because of the grounding of 34 Boeing MAX eight plane, Southwest Airways (NYSE: LUV) hopes to have the ability to return these planes to service through the latter half of the yr. As the corporate’s capability development plan solely contains the Boeing MAX collection, the uncertainty surrounding this plane is prone to lead to one other yr of capability crunch for the low-cost airline. Regardless of this imminent headwind, Trefis expects Southwest Airlines’ Revenues to develop by 3% to $23 billion in 2020, assisted by the next occupancy fee and rising airfares. On this article, we take a fast have a look at key operational parameters driving the corporate’s prime line and our expectations for 2020.
A Fast Have a look at Southwest Airlines’ Revenues
Southwest Airways’ reported $22.four billion in Whole Revenues for full-year 2019. It contains three income streams:
- Passenger Income: $20.7 billion in FY2019 (93% of Whole Revenues). It represents revenue from the sale of air tickets…