Southwest Airlines 2Q earnings rise 41%

07/14/05 - newratings.com

NEW YORK, July 14 (newratings.com) – Low-cost carrier Southwest Airlines (LUV) Thursday reported a 41% increase in its second quarter profits as fare increases enabled the company to offset the rising cost of fuel.

The company’s net income for the three-months ended June 30 increased to $159 million, or $0.20 per share, from $113 million or $0.14 per share posted in the year-ago period. The company’s revenues for the quarter increased 13.3% to $1.94 billion from $1.72-billion posted in a year ago. Southwest Airlines’ CEO, Cary C Gelly, said that the company aimed to cut costs and increase productivity in a bid to keep its 3Q unit costs, excluding fuel costs, in-line with the levels witnessed in 2Q. The company’s share price appreciated 5.6% to $14.47 in morning trade on the NYSE.