Southwest reports profit DALLAS (AP) =97 Low-fare carrier Southwest Airlines on Monday reported its= =20 48th consecutive profitable quarter, with earnings of $24 million for the=20 first three months of 2003, despite gloomier financial results from other=20 air carriers. The first-quarter earnings of 3 cents a share were an=20 increase of 14.3% over the year-ago period, the carrier said. In the first= =20 quarter of 2002, Southwest's $21.4 million in net income was its lowest=20 quarterly profit since fourth quarter 1994. The latest results were in=20 line with estimates of analysts surveyed by Thomson First Call. Total=20 operating revenue rose 7.5% to $1.35 billion. "Although our financial=20 performance has been exceptional relative to the airline industry as a=20 whole, Southwest, too, has been severely impacted by the lingering effects= =20 of the 2001 terrorist attacks and the war in Iraq," James Parker, company=20 vice chairman and chief executive officer, said in a prepared statement.=20 "Although our revenues were showing signs of recovery during fourth quarter= =20 2002 and into first quarter 2003, those trends were disrupted. "Since the= =20 war began, bookings for second quarter 2003 have softened further," he=20 said. "Currently, we expect only modest revenue growth, if any, compared to= =20 last year's second quarter revenue of $1.47 billion, which included $36=20 million in additional revenue related to a reduction in estimated refunds=20 and exchanges included in air traffic liability." Southwest, the No. 6 U.S. airline, still said it should be profitable in=20 the second quarter barring another catastrophic shock to the industry. The= =20 last time Southwest Airlines lost money, in the first quarter of 1991, the= =20 United States was also at war with Iraq in Operation Desert Storm, the=20 conflict that pushed dictator Saddam Hussein out of Kuwait. Financial=20 performance of the U.S. airline industry had begun suffering soon after the= =20 August 1990 invasion of Kuwait by Iraq. The downturn that followed and=20 lasted through 1993 marked the industry's worst period to that point, with= =20 about $13 billion in net losses. After the Sept. 11 terrorist attacks,=20 U.S. airlines furloughed tens of thousands of employees, grounded part of=20 their capacity and still lost record amounts of money =97 $7.7 billion in=20 2001 and an estimated $10 billion or more last year. Southwest executives= =20 have indicated that the tension over Iraq and then the latest Iraqi war=20 have also had had an impact. In an April 9 report, a day after meeting=20 with Southwest management, Blaylock and Partners analyst Ray Neidl told=20 investors that "uncertain industry conditions continue to impact=20 profitability and growth over the short term." However, Neidl said the=20 carrier "should return to aggressive growth once the economy recovers and=20 the Iraq war is over." Gary Chase of Lehman Bros. said in a recent report= =20 that Southwest should do well, despite efforts by higher-cost competitors=20 to bring their costs down closer to Southwest's. "While the network=20 airlines are likely to close some of the cost gap with Southwest through=20 bankruptcy and other means, Southwest has nothing to fear," he said in The= =20 Dallas Morning News' Monday editions. Contributing: Reuters *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.pscutt.com TnT Webdirectory: http://search.co.tt *********************************************************