=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/04/15/f= inancial0900EDT0040.DTL --------------------------------------------------------------------- Thursday, April 15, 2004 (AP) Southwest posts narrow profit (04-15) 06:00 PDT DALLAS (AP) -- Southwest Airlines said Thursday that it earned slightly more in first-quarter profits than a year ago, as higher revenue was offset by rising costs for labor and jet fuel. Southwest said Thursday that it earned $26 million, or 3 cents per share, in the January-March period compared with $24 million, also 3 cents per share, a year earlier. The 2004 figure included $18 million of expenses related to closing three of its nine reservation call centers. Southwest said analysts surveyed by Thomson First Call did not include those costs in their forecast of earnings of 4 cents per share. Revenues rose 9.8 percent to $1.48 billion, compared to $1.35 billion a year ago. Miles flown by paying customers rose 8.2 percent, which was more than the 5.6 percent increase in capacity, meaning that Southwests jets were slightly more full than in early 2003. Occupancy rose to 64.2 percent from 62.6 percent in early 2003. Operating expenses were $1.44 billion, an increase of 10.2 percent from early 2003. The Dallas-based carrier cited higher labor, airport, and jet fuel costs. Fuel costs rose 6.4 percent, the company said. Southwest said it had locked in prices for most of its fuel this year to limit the effect of price increases. Chief executive James F. Parker said the company was "grateful" to report its 52nd straight profitable quarter during a time of " record high energy costs and the challenging revenue environment our industry faced" in the latest period. Parker said the company expected heavy passenger loads from March to continue into April, and he said there had been a "significant pickup" in May and June bookings. He said revenue per passenger in the second quarter would top year-earlier levels. Parker said the company recently exercised options to buy three more Boeing 737s next year, raising its firm orders for 2005 to 31 from 28 with options for another three jets. ---------------------------------------------------------------------- Copyright 2004 AP