DieselDragRacer
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http://www.cnbc.com/id/44017591
Southwest Airlines posted a higher quarterly profit Thursday, helped by full flights and higher fares, but fell short of Wall Street expectations.
The low-cost carrier said its fuel costs rose 64 percent from a year earlier and it has trimmed its winter flying schedule and 2012 capacity plans.
"Given the pessimistic near-term outlook for fuel prices and the U.S. economy, we have reevaluated our capacity plans," Chief Executive Gary Kelly said in a statement.
The airline industry has been battered this year by soaring fuel costs. While most major U.S. carriers posted profits for the second quarter, fuel costs weighed. Southwest said earnings came to $161 million, or 21 cents a share, for the second quarter, compared with $112 million, or 15 cents a share, a year earlier.
Excluding one-time items, profit was 15 cents per share. On that basis, analysts had expected 20 cents, according to Thomson Reuters.
Quarterly revenue rose 31 percent to $4.1 billion.
Southwest completed its purchase of AirTran in May, positioning itself to challenge bigger rivals in major East Coast markets such as Atlanta, a city it did not previously serve and home of the world's busiest airport.
Southwest said it has incurred $75 million in costs related to the merger this year, including $58 million in second quarter 2011.
The company said it expects to receive final government approval to operate as a single carrier in the 2012 first quarter.
Southwest Airlines posted a higher quarterly profit Thursday, helped by full flights and higher fares, but fell short of Wall Street expectations.
The low-cost carrier said its fuel costs rose 64 percent from a year earlier and it has trimmed its winter flying schedule and 2012 capacity plans.
"Given the pessimistic near-term outlook for fuel prices and the U.S. economy, we have reevaluated our capacity plans," Chief Executive Gary Kelly said in a statement.
The airline industry has been battered this year by soaring fuel costs. While most major U.S. carriers posted profits for the second quarter, fuel costs weighed. Southwest said earnings came to $161 million, or 21 cents a share, for the second quarter, compared with $112 million, or 15 cents a share, a year earlier.
Excluding one-time items, profit was 15 cents per share. On that basis, analysts had expected 20 cents, according to Thomson Reuters.
Quarterly revenue rose 31 percent to $4.1 billion.
Southwest completed its purchase of AirTran in May, positioning itself to challenge bigger rivals in major East Coast markets such as Atlanta, a city it did not previously serve and home of the world's busiest airport.
Southwest said it has incurred $75 million in costs related to the merger this year, including $58 million in second quarter 2011.
The company said it expects to receive final government approval to operate as a single carrier in the 2012 first quarter.
