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

Bundesbank chief concerned about emergency funding for Greek banksBundesbank chief concerned about emergency funding for Greek banks
BERLIN (Reuters) - The head of Germany`s Bundesbank said on Saturday he had misgivings about granting emergency funding to Greece as the liquidity situation at the country`s banks has not improved. ...
Greece not playing a game of chicken on debt - KotziasGreece not playing a game of chicken on debt - Kotzias
NEW YORK (Reuters) - Greek Foreign Minister Nikos Kotzias said on Friday he respects Germany just not German politics, nor the way Berlin views Greece`s economy, which faces the prospect of running ...
Sony raises FY 2015 profit forecast to $2.5 billion: NikkeiSony raises FY 2015 profit forecast to $2.5 billion: Nikkei
TOKYO (Reuters) - Japanese consumer electronics firm Sony Corp <6758.T> has raised its operating profit estimate for fiscal 2015 to 300 billion yen ($2.52 billion), or four times its previous es...
Flash crash charges garner increasing skepticism in high-speed worldFlash crash charges garner increasing skepticism in high-speed world
WASHINGTON (Reuters) - The notion that one man trading from his parents` house in a working class London suburb had a material role in the 2010 Wall Street flash crash has aroused increasing skeptic...
Analysts See China Swing Factoring In Apple's Q2Analysts See China Swing Factoring In Apple's Q2
Apple Inc. (NASDAQ: AAPL ) will post one more quarter of stellar smartphone growth Monday, but it could be downhill from there, an analyst said Friday. Cupertino, California-based Apple Campus 2, ...

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 Futures Day Trading System S&P + Crude Oil Signals
Autotrading Autotrade Stocks Try for Free!