Southwest Air posts profit on lower revenues
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DALLAS, July 18 (Reuters) - Southwest Airlines Co. (NYSE:LUV - News) on Thursday reported a $102.3 million quarterly profit, bucking the trend of losses among major U.S. airlines as its low cost structure offset a decline in revenue.
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Southwest, the leading low-cost carrier and No. 7 airline in the U.S., said it also expects to be profitable in the third quarter, though less than in the second quarter.
The airline's earnings have dropped sharply since the Sept. 11 attacks, but the carrier has reported a profit for each quarter. Southwest is the only major carrier that did not cut its schedule or lay off employees after the attacks.
Southwest reported net earnings of 13 cents per share for the second quarter, down 42 percent from a profit of $175.6 million, or 22 cents, in the same period a year earlier.
Excluding a $36 million gain, Southwest's second-quarter income was $84.5 million, or 10 cents per diluted share. The gain represents a lower than estimated liability for refunds and exchanges as passengers bought more restricted fares,
Analysts expected Southwest to earn 8 cents a share to 13 cents with a mean profit of 11 cents a share, according to market research firm Thomson First Call.
Total operating revenue fell 5 percent to $1.47 billion in the second quarter, mainly due to weak full-fare customer demand for air travel, Southwest said.
The nation's top carriers are expected to report losses totaling about $1.4 billion in the second quarter, on top of $2.4 billion losses in the first quarter and $7.4 billion in 2001 due to continued weak travel demand.
Continental Airlines (NYSE:CAL - News), American Airlines parent AMR Corp. (NYSE:AMR - News) and Delta Air Lines (NYSE
AL - News) have reported quarterly net losses so far this week.
Southwest posted a profit of $511 million last year and followed that with another $21.4 million in profits last quarter.
Southwest ended the second quarter with $2.1 billion cash on hand.
Shares of Southwest fell about 16.5 percent in the second quarter, while the American Stock Exchange airline index (AMEX:^XAL - News) declined about 33 percent. The shares closed at $13.93 Wednesday.
Southwest 2nd Qtr Results
More detailed description
(Adds details throughout)
DALLAS, July 18 (Reuters) - Southwest Airlines Co. (NYSE:LUV - News) on Thursday reported a $102.3 million quarterly profit, bucking the trend of losses among major U.S. airlines as its low cost structure offset a decline in revenue.
ADVERTISEMENT
Southwest, the leading low-cost carrier and No. 7 airline in the U.S., said it also expects to be profitable in the third quarter, though less than in the second quarter.
The airline's earnings have dropped sharply since the Sept. 11 attacks, but the carrier has reported a profit for each quarter. Southwest is the only major carrier that did not cut its schedule or lay off employees after the attacks.
Southwest reported net earnings of 13 cents per share for the second quarter, down 42 percent from a profit of $175.6 million, or 22 cents, in the same period a year earlier.
Excluding a $36 million gain, Southwest's second-quarter income was $84.5 million, or 10 cents per diluted share. The gain represents a lower than estimated liability for refunds and exchanges as passengers bought more restricted fares,
Analysts expected Southwest to earn 8 cents a share to 13 cents with a mean profit of 11 cents a share, according to market research firm Thomson First Call.
Total operating revenue fell 5 percent to $1.47 billion in the second quarter, mainly due to weak full-fare customer demand for air travel, Southwest said.
The nation's top carriers are expected to report losses totaling about $1.4 billion in the second quarter, on top of $2.4 billion losses in the first quarter and $7.4 billion in 2001 due to continued weak travel demand.
Continental Airlines (NYSE:CAL - News), American Airlines parent AMR Corp. (NYSE:AMR - News) and Delta Air Lines (NYSE
AL - News) have reported quarterly net losses so far this week. Southwest posted a profit of $511 million last year and followed that with another $21.4 million in profits last quarter.
Southwest ended the second quarter with $2.1 billion cash on hand.
Shares of Southwest fell about 16.5 percent in the second quarter, while the American Stock Exchange airline index (AMEX:^XAL - News) declined about 33 percent. The shares closed at $13.93 Wednesday.
Southwest 2nd Qtr Results
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