This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ Southwest Posts Another Profit as Bigger Rival Airlines Struggle April 22, 2003 By The Associated Press Southwest Airlines, the low-fare carrier, reported its 48th consecutive profitable quarter yesterday, even as its larger rivals posted heavy losses. Southwest earned $24 million, or 3 cents a share, in the first quarter, an increase of 14.3 percent over the year-earlier period, the company said. In the first three months of 2002, Southwest had $21.4 million in net income - its lowest quarterly profit since the fourth quarter of 1994. Revenue rose 7.5 percent, to $1.35 billion from $1.26 billion. The latest results were in line with estimates of analysts surveyed by Thomson First Call. "Although our financial performance has been exceptional relative to the airline industry as a whole, Southwest, too, has been severely impacted by the lingering effects of the 2001 terrorist attacks and the war in Iraq," said James F. Parker, vice chairman and chief executive. "Although our revenues were showing signs of recovery during fourth quarter 2002 and into first quarter 2003, those trends were disrupted. "Since the war began, bookings for second quarter 2003 have softened further," he said. The company is expecting only modest growth in revenue, if any, compared with last year's second-quarter revenue of $1.47 billion, which included $36 million in additional revenue related to a reduction in estimated refunds and exchanges included in air traffic liability. The last time Southwest Airlines lost money, in the first quarter of 1991, the United States was also at war with Iraq. Financial performance of the United States airline industry had begun suffering soon after the August 1990 invasion of Kuwait by Iraq. The downturn that followed through 1993 was the industry's worst period to that point, with some $13 billion in net losses. The current war adds to an already glum environment for air travel that has sent two major carriers - United Airlines and US Airways - into bankruptcy court. US Airways emerged from court protection late last month. After the Sept. 11 attacks, United States airlines furloughed tens of thousands of employees, grounded part of their fleets and still lost record amounts of money - $7.7 billion in 2001 and an estimated $10 billion or more last year. Last week, Delta Air Lines reported a wider first-quarter loss and offered a gloomy forecast days after Continental and Northwest Airlines both reported hefty losses. Delta lost $466 million, Continental lost $221 million and Northwest $396 million. Shares of Southwest fell 36 cents, to close at $15.16, on the New York Stock Exchange. http://www.nytimes.com/2003/04/22/business/22SOUT.html?ex=1052018014&ei=1&en=3a611b7920180c80 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company