Revenue Continues to Grow: Southwest Air CEO


Southwest Airlinesreported record revenue and earnings growthThursday and all signs point to continued growth for the low-cost airline, Gary Kelly, chairman and CEO said on CNBC Thursday.

LUV's Upbeat Earnings

"I don’t see any signs of a slowdown in our revenue momentum," said Kelly.

Kelly added that through the second quarter, Southwest's revenue was up 21 percent, and its earnings more than tripled, despite higher fuel costs.

The traffic so far through July, and the booking for the rest of this quarter look strong, Kelly went on to say.

Whether July traffic for the airline is a record "I can’t quite say, but it’s possible," Kelly said. "And that will be an all-time monthly record if that occurs."

Southwest's demand is strongest among consumers, which represent about 65 percent of Southwest's business. The airliner is seeing improvement in business travel, but it has not returned to pre-recession levels, said Kelly.

In the past, Southwest has managed the effects of volatile fuel prices on its bottom line by hedging fuel prices (buying oil like it's a future's contract).

While Kelly is unsure how financial regulatory reformwill affect Southwest's ability to hedge, he said he's confident the airliner can continue to do so.

"What’s helpful with the new legislation is there’s much more transparency and I think much less ability to manipulate the market, and that’s what important to us," Kelly said.