Stock:
Symbol Lookup
Register | Login My Watchlist | My Account | Logout
History
to View Your Portfolio

Pre Market | Dow Jones | Gold | Newsletters | Learn


Southwest Airlines Reports Q4 Results (LUV)

Friday, January 25, 2013 7:24 AM
Southwest Airlines Co. (NYSE: LUV) reported on Thursday that its fiscal fourth-quarter profit  plunged 49% due to decline in passenger traffic, higher operating expenses and  low gains on fuel-hedge; however, shares gained a tad as the U.S’s fourth largest airline company provided an upbeat outlook on the fiscal first quarter, thanks to strong bookings. The Company said that looking at the current trend in bookings and ticket prices thus far, revenue could rise 2 to 3 percent in January from the same period of last year. Southwest Airlines, which introduced the concept no-frills business, is expanding its traction in domestic market through the acquisition of Air Tran, even as it intends to start international services. According to the Company’s Chairman and Chief Executive, Garry Kelly, the company was on track to fully integrate Air Tran’s business by the end of fiscal 2014. The move will is allowing Southwest Airlines to offer more connecting flights. For the fiscal fourth quarter, the airline company reported a  net income of $78 million, or 11 cents a share compared  to income of $152 million, or 20 cents a share, in the corresponding period of last year. After excluding onetime gains such as gains on fuel contracts, net income came in at 9 cents a share, 2 cents above analysts’ expectation. Revenue during the period rose 1.6% to $4.17 billion as average fare jumped $8 from the year earlier period; nevertheless, it fell short of Street’s average estimate of $4.20 billion. Nonetheless, the pace of rise in expenses outpaced the revenue growth. While labor costs during the quarter jumped by 4.5 percent, maintenance costs leaped 13 percent. Fuel cost, which is Airline Company’s biggest cost component, increased merely by 0.7%. In the first quarter which ends March 31, Southwest is expecting fuel bill will fall to $3.30 a gallon from $3.44 a gallon, in the same period of last year. CEO Gary Kelly described falling fuel cost as an “encouraging trend”. The average fourth-quarter fare, a key gauge on airline company’s performance,  was $148.02, up 5.4 percent from $140.38, in the year earlier quarter. For fiscal 2012, Southwest earnings stood at $421 million, up from $178 million, in fiscal 2011, a 40th successive profitable year.
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2016 the year you get RICH!

Latest Headlines

U.S., India in talks to settle solar power trade disputeU.S., India in talks to settle solar power trade dispute
WASHINGTON (Reuters) - The United States and India are in talks that could settle a long-running solar power trade dispute, delaying the announcement of a ruling by the World Trade Organization, an ...
Lawmakers nix bill linking tax breaks to Boeing jobsLawmakers nix bill linking tax breaks to Boeing jobs
SEATTLE (Reuters) - Washington state lawmakers voted down a bill on Friday that would have linked billions of dollars in state tax breaks to Boeing Co employment levels. The 7-8 vote in the House ...
State lawmakers nix bill linking aerospace tax breaks to Boeing jobs State lawmakers nix bill linking aerospace tax breaks to Boeing jobs
SEATTLE (Reuters) - Washington state lawmakers voted down a bill on Friday that would have linked $8.9 billion in state aerospace industry tax breaks to Boeing Co employment levels. (Reporting by Al...
Argentina offers U.S. creditors $6.5 billion payment on defaulted debtArgentina offers U.S. creditors $6.5 billion payment on defaulted debt
NEW YORK/BUENOS AIRES (Reuters) - Argentina made a formal debt payment offer to U.S. creditors who hold its defaulted bonds on Friday, seeking to end a more than decade-long legal battle that transf...
New Jersey sues VW over excess diesel emissions New Jersey sues VW over excess diesel emissions
(Reuters) - New Jersey on Friday filed a lawsuit against Volkswagen AG and its luxury units over the German automaker`s excess diesel emissions, becoming the third U.S. state to take legal action. ...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.

{localized={en_US=Terry}, preferredLocale={country=US, language=en}} {localized={en_US=Scott}, preferredLocale={country=US, language=en}}

Terry Scott
CEO of StockMarketWatch

View Profile


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.

Be a Better
Trader, Today
arrow
PreMarket PRO Our New Streaming Realtime Pre-Market Product -- Click Here to Learn More