Southwest Airlines reported an operating expense of about 19.47 billion U.S. dollars in 2019. The company's operating expenses increased incrementally since 2015 and include costs such as maintenance, luggage handling, airport fees, and marketing.
Southwest's position in the market
Southwest has almost tripled its operating income since 2010, where it was at 988 million U.S. dollars, to over 2.96 billion U.S. dollars in 2019. The airline comprises the largest share of the domestic market in the United States, reaching 20.4 percent in 2018, more than four percentage points above its closest competitors - Delta Air Lines and American Airlines.
Expenses within the airline industry: jet fuel
The airline industry currently faces several challenges, including volatile fuel prices, which represent between 20 and 30 percent of an airline's total expenses and thus have a substantial impact on an airline's financial standing. Airlines attempt to handle this through strategies such as using more fuel-efficient fleets or price hedging.
Southwest's operating expenses from FY 2011 to FY 2019
(in billion U.S. dollars)
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Southwest Airlines. (February 4, 2020). Southwest's operating expenses from FY 2011 to FY 2019 (in billion U.S. dollars) [Graph]. In Statista. Retrieved June 02, 2020, from https://www.statista.com/statistics/595517/operating-expenses-of-southwest-airlines/
Southwest Airlines. "Southwest's operating expenses from FY 2011 to FY 2019 (in billion U.S. dollars)." Chart. February 4, 2020. Statista. Accessed June 02, 2020. https://www.statista.com/statistics/595517/operating-expenses-of-southwest-airlines/
Southwest Airlines. (2020). Southwest's operating expenses from FY 2011 to FY 2019 (in billion U.S. dollars). Statista. Statista Inc.. Accessed: June 02, 2020. https://www.statista.com/statistics/595517/operating-expenses-of-southwest-airlines/
Southwest Airlines. "Southwest's Operating Expenses from Fy 2011 to Fy 2019 (in Billion U.S. Dollars)." Statista, Statista Inc., 4 Feb 2020, https://www.statista.com/statistics/595517/operating-expenses-of-southwest-airlines/
Southwest Airlines, Southwest's operating expenses from FY 2011 to FY 2019 (in billion U.S. dollars) Statista, https://www.statista.com/statistics/595517/operating-expenses-of-southwest-airlines/ (last visited June 02, 2020)
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