Just goes to show, as much as people may dislike them, they are a powerhouse! Clay - SEA FAAn of North Texas-based airlines. -----Original Message----- From: Bill Hough [mailto:psa188@xxxxxxxxx]=20 Sent: Thursday, October 14, 2004 6:58 AM Subject: SFGate: Southwest reports profits, higher revenue =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/2004/10/14= / financial0923EDT0048.DTL --------------------------------------------------------------------- Thursday, October 14, 2004 (AP) Southwest reports profits, higher revenue (10-14) 06:52 PDT DALLAS (AP) -- Southwest Airlines Co. reported a 12 percent jump in third-quarter profits on Thursday, as its decision to buy fuel in advance helped insulate the low-cost carrier from rising fuel prices. Southwest said Thursday that it earned $119 million, or 15 cents a share, in the July-September quarter, up from $106 million, or 13 cents a share, a year earlier. Analysts surveyed by Thomson First Call had forecast 12 cents per share in earnings. Revenue was $1.67 billion, up nearly 8 percent from $1.55 billion a year earlier -- but a bit below the $1.69 billion forecast by analysts. In morning trading Thursday, Southwest shares were up 42 cents, or 3 percent, at $13.99 on the New York Stock Exchange. Southwest was the first major carrier to report third-quarter results. Southwest had hedged -- or made advance purchases at fixed prices -- for most of its jet fuel purchases, which helped offset rising fuel prices. Chief executive Gary Kelly said in a statement that the Dallas-based carrier's cost controls "significantly contributed to these results" despite a weak environment for airline revenue and higher fuel prices. Kelly said that, excluding fuel, Southwest's costs were flat with a year ago and below the levels in the first half of this year. Southwest said it has hedged 80 percent of its fourth-quarter fuel prices at the equivalent of $24 a barrel, about half the current price, and 80 percent hedged next year at $25 per barrel. Traffic as measured by passengers flown by paying customers, rose 10.4 percent. Southwest has increased its fleet to 400 planes, which pushed capacity up 7 percent from a year ago. Average occupancy on the Southwest planes rose to 72.7 percent from 70.5 percent a year earlier. For the first nine months of the year, Southwest earned $258 million, or 32 cents per share on revenues of $4.40 billion. A year ago, the company earned $233 million, or 28 cents, per share on revenues of $4.05 billion. The $233 million figure excludes a $143 million government grant the airline received in 2003. On the Net: Southwest: www.southwest.com ---------------------------------------------------------------------- Copyright 2004 AP