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 Airlines Looking for Expansion Opportunities July 22, 2003 By REUTERS CHICAGO, July 21 - Southwest Airlines reported an increase in its quarterly profit today and said that it would speed the delivery of planes next year as it looked for opportunities to expand. Southwest, the only major United States carrier to report consistent profits since the Sept. 11 attacks, said that it would increase capacity 6 percent to 7 percent next year and that profits in this year's third quarter would be higher than the $75 million it posted a year ago. Its larger rivals, meanwhile, are deferring aircraft deliveries and relying on government aid to offset huge losses. The airline also said it might add a city to its network in 2004, which would be its first move into a new market since it started service to Norfolk, Va., a month after Sept. 11, 2001. Southwest is also looking to add business where its bigger competitors - strapped with excessive costs - are cutting back. In a conference call with analysts, its chief financial officer, Gary C. Kelly, said the decision by AMR, the parent of American Airlines, to reduce its St. Louis service provided an opportunity for Southwest to expand. "We are interested in doing something there," Mr. Kelly said. Southwest reported second-quarter net income of $246 million, or 30 cents a share, including $143 million in government aid to offset security costs. That was more than the $102 million, or 13 cents a share, it posted for the second quarter of 2002. Even without the government aid, Southwest's profit rose 22.6 percent, to $103 million, or 13 cents a share, from $84 million, or 10 cents a share, before one-time items a year earlier. Analysts on average expected Southwest to earn 11 cents a share. The carrier said it recently exercised options for the delivery of nine Boeing 737-700's next year. http://www.nytimes.com/2003/07/22/business/22FLY.html?ex=1059880788&ei=1&en=7475859c4f83bd0c --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html 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