Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Southwest posts $152M 4Q profit on strong traffic

Send a link to a friend

[January 19, 2012]  DALLAS (AP) -- Southwest Airlines Co. is making money even with higher fuel prices, thanks to full planes and rising fares.

HardwareCEO Gary C. Kelly says based on passenger-booking trends, the airline expects strong revenue in the first quarter too.

Southwest said Thursday that it earned $152 million in the fourth quarter, up from $131 million a year earlier.

The increase came from gains on fuel-hedging contracts. Without those one-time gains, Southwest would have earned $66 million, or 9 cents per share, compared with adjusted income of $115 million, or 15 cents per share, a year ago.

Still, the results beat analysts' prediction of 8 cents per share, according to FactSet.

With the addition of AirTran Airways, which Southwest bought last year, revenue jumped to $4.11 billion, a tick below analysts' forecast of $4.12 billion.

Southwest carries more passengers in the U.S. than any airline, and it's the first to report fourth-quarter results, so its profit is likely to be seen as a precursor to figures from other carriers that report next week.

Fuel costs have weighed on the airlines, but they were able to offset that by raising fares repeatedly in 2011.

[to top of second column]

The average passenger on Southwest paid a fare of $140.18 in the fourth quarter, a 7 percent increase from a year ago.

Southwest paid more at the pump to fill its fleet of Boeing 737s, however. Fuel averaged $3.29 per gallon, up from $2.46 a year earlier, and Southwest's final fuel tab came to $1.49 billion.

[Associated Press; By DAVID KOENIG]

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

< Recent articles

Back to top


 

News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries

Community | Perspectives | Law & Courts | Leisure Time | Spiritual Life | Health & Fitness | Teen Scene
Calendar | Letters to the Editor