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 2015 the year you get RICH!

Latest Headlines

Exclusive: Sysco, US Foods offer to divest 11 facilities to win FTC deal approvalExclusive: Sysco, US Foods offer to divest 11 facilities to win FTC deal approval
WASHINGTON (Reuters) - Food distributor Sysco Corp <SYY.N> and its biggest rival, US Foods Inc <USFOO.UL>, have offered to sell a smaller competitor 11 facilities in order to convince sk...
Honda says fatal crash involved Takata air bag inflator ruptureHonda says fatal crash involved Takata air bag inflator rupture
DETROIT (Reuters) - Honda Motor Co <7267.T> on Friday said it has confirmed that a Takata Corp <7312.T> air bag inflator ruptured in a Jan. 18 crash in Texas that killed the driver. Prio...
ECB's Praet says quantitative easing will help fend off damaging deflationECB's Praet says quantitative easing will help fend off damaging deflation
BERLIN (Reuters) - European Central Bank Executive Board member Peter Praet defended the ECB`s decision to buy government bonds in an interview published on Saturday, saying it took pre-emptive action...
Exxon adds discrimination protections in U.S. for LGBT workers  Exxon adds discrimination protections in U.S. for LGBT workers
HOUSTON (Reuters) - Exxon Mobil Corp <XOM.N>, the world`s largest publicly traded oil company, has changed its U.S. employment policies to prohibit discrimination based on sexual orientation a...
Fed's Williams sticks to mid-year call for possible rate hike Fed's Williams sticks to mid-year call for possible rate hike
SAN FRANCISCO (Reuters) - The Federal Reserve is still on track to potentially raise U.S. interest rates in six months or so, a top Fed official said on Friday, repeating a view he has held for severa...

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.

Algorithm Based
Trade Signals
arrow
small cap swing trades SmallCaps stocks under $10
Index Signals Index Signals SPY, QQQ, DIA, IWM
options trading Mega Stocks options + stock trade signals
AppleStock FREE AAPL Signals realtime daytrade signals