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

China February exports seen roaring back, but deflationary risks still lurkingChina February exports seen roaring back, but deflationary risks still lurking
BEIJING (Reuters) - China`s exports likely recovered in February after a grim January reading, a Reuters poll showed, but inflation remained anemic, keeping pressure on policymakers to roll out more s...
Bank of Japan's QE skeptic says appropriate inflation lower than 2 percentBank of Japan's QE skeptic says appropriate inflation lower than 2 percent
MAEBASHI, Japan (Reuters) - The Bank of Japan should give itself more time to achieve its ambitious price target, board member Takahide Kiuchi said, warning that an appropriate level of inflation fo...
Bank of Japan's Kiuchi: Appropriate price level for Japan lower than 2 percentBank of Japan's Kiuchi: Appropriate price level for Japan lower than 2 percent
MAEBASHI, Japan (Reuters) - Bank of Japan board member Takahide Kiuchi said on Thursday that an appropriate level of inflation for Japan now is lower than the central bank`s 2 percent target. "If th...
China aims for around seven percent economic growth in 2015: Premier Li China aims for around seven percent economic growth in 2015: Premier Li
BEIJING (Reuters) - China aims to grow its economy by around 7 percent in 2015 and to keep consumer inflation at around 3 percent, Premier Li Keqiang said in remarks prepared for delivery at today`s o...
Asia stocks slip, euro languishes at 11-year low before ECBAsia stocks slip, euro languishes at 11-year low before ECB
TOKYO (Reuters) - Asian stocks slipped on Thursday after Wall Street continued to pull back from record highs ahead of Friday`s closely-watched U.S. jobs data, while the nervous euro languished at a...

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