SWA returns to Denver

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1


[ Competing against a strong FFT, or a dying UAL?
You decide. -Ed. ]

http://www.thedenverchannel.com/trav...43/detail.html

Southwest Airlines Returning To Denver
Third-Quarter Profit Nearly Doubles For Texas-Based Airline

POSTED: 6:15 am MDT October 20, 2005
UPDATED: 6:14 pm MDT October 20, 2005

DALLAS -- Low-cost carrier Southwest Airlines said Thursday it will
begin flying to Denver in January, going head-to-head with United
Airlines as it emerges from bankruptcy and with Frontier Airlines, a
Denver-based low-fare carrier.

Southwest said it would release schedules and fares next week.

Denver officials Thursday said the announcement is good news for the
traveling public in the Rocky Mountain region.

"We welcome Southwest to the Mile High City," said Denver Mayor John
Hickenlooper. "Southwest has the reputation of being one of the
toughest competitors in the airline industry, but so are Frontier and
United and the other carriers based at DIA. We welcome Southwest to
join the family, knowing that everyone who flies in and out of the
Denver metro region will benefit from the lower prices that the new
competition will bring."

Turner West, co-manager of aviation at DIA, said Southwest??s entry
into the Denver market will be "great news for travelers throughout the
Rocky Mountain area that is served by Denver International Airport.
"Denver will now be served by most of the low-fare carriers in the
country, and more competition generally results in lower fares."

Specifics regarding Southwest's flight schedule and fares from DIA were
expected to be revealed during a news conference sometime next week.

"Southwest has experienced strong customer demand to serve an obvious
gap in our route network, and this service will return Southwest??s
legendary low fares to Colorado," said Gary Kelly, Southwest??s Chief
Executive Officer. "Denver??s growing community is one we have studied
and intended to serve, for quite some time, and we look forward to also
serving the people of the entire State of Colorado."

Historically, when Southwest enters a new city, fares drop
substantially and demand for travel greatly increases. The U.S.
Department of Transportation in a 1993 study described the phenomenon
as the "Southwest Effect."

United is the dominant carrier in Denver, followed by Frontier.

Frontier spokesman Joe Hodas said the airline competes against
Southwest at other U.S. cities and is awaiting details about
Southwest's plans for Denver.

"Much of our research would indicate that we're very competitive," he
said.

Southwest left Denver in 1986 after serving the former Stapleton
International Airport since 1983.

Meantime, Southwest's quarterly profit rose to $227 million, or 28
cents per share, from $119 million, or 15 cents per share, last year.
Profit included $87 million in one-time gains from Southwest's hedging
strategy, in which it locks in jet-fuel prices months in advance to
protect it from price spikes, is considered to be among the best within
the airline industry.

Without that gain, the company reported earnings of $174 million, or 21
cents per share. The results surpassed Wall Street projections for
earnings of 18 cents per share, according to a Thomson Financial survey
of analysts.

Southwest is more than 70 percent hedged for 2006.

Total operating revenues increased 19 percent to $1.99 billion,
compared with $1.67 billion last year. Operating income rose to $273
million from $191 million a year ago.

Quarterly traffic increased 15.5 percent to 16.37 billion revenue
passenger miles, which is one paying passenger flown one mile. Capacity
grew 12.1 percent, and load factor, or the percentage of seats filled,
rose 2.2 points to 74.9 percent.

BL.
- --
Brad Littlejohn | Email:
Unix Systems Administrator, |
Web + NewsMaster, BOFH.. Smeghead! | http://www.sbcglobal.net/~tyketto
PGP: 1024D/E319F0BF 6980 AAD6 7329 E9E6 D569 F620 C819 199A E319 F0BF

-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.4.2 (GNU/Linux)

iD8DBQFDXRU2yBkZmuMZ8L8RArQsAKCTiBAO3yxpu1Ae4N6ZDD jrbqmxUACguSr0
ShoNRr1XOvq5tvfPZGzfKXg=
=JxJo
-----END PGP SIGNATURE-----