Stock:
Symbol Lookup
Register | Login
...
History
...
...

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 2014 the year you get RICH!

Latest Headlines

Asian factories slow in September, push inflation ever lowerAsian factories slow in September, push inflation ever lower
SYDNEY (Reuters) - Factory activity stumbled across much of Asia in September, with slowdowns in India, Japan and Taiwan and an outright decline in South Korea delivering a setback to hopes for a pi...
Winter season heightens Russia-Europe gas gameWinter season heightens Russia-Europe gas game
PRAGUE/BERLIN (Reuters) - A cat and mouse game is on between Europe and Russia over gas supplies as the continent switches into the winter heating season. Since September, Russia`s state-controlle...
Dollar scales six-year peak vs yen, Aussie falters on weak dataDollar scales six-year peak vs yen, Aussie falters on weak data
TOKYO/SYDNEY (Reuters) - The dollar struck a six-year high against the yen and was poised near a two-year peak against the euro, while gathering more bullish impetus on Wednesday as weaker than expe...
If analysts don't ask questions, expect stock declines: studyIf analysts don't ask questions, expect stock declines: study
NEW YORK (Reuters) - Earnings conference calls that inspire little more than silence are not a great sign for the company`s shares in the days that follow, according to a study released on Wednesday...
Dollar rises above 110 yen for the first time since August 2008Dollar rises above 110 yen for the first time since August 2008
TOKYO (Reuters) - The dollar rose above 110 yen for the first time since August 2008 on Wednesday, continuing to ride on bullish momentum against its peers generated by gains against a flagging euro. ...

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.


Learn the Stock Market

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