Quantcast
Transport Airlines

Southwest Airlines’ Q2 Profits Dropped as Costs Went Up

Jul 25, 2013 6:50 am

Skift Take

The rising demand that analysts and other airlines were hoping for didn’t materialize. That’s good news for consumers who likely won’t be hit with fare increases in Q3.

— Jason Clampet

Free Report: The Megatrends Defining Travel in 2015

Southwest Airlines Co said on Thursday that quarterly profit edged down as costs increased.

Net income dipped to $224 million, or 31 cents a share, in the second quarter, from $228 million, or 30 cents a share, a year earlier.

There were special items including costs tied to the integration of AirTran, which was acquired in 2011. Excluding items, profit was 38 cents a share, in line with expectations of analysts on average, according to Thomson Reuters I/B/E/S.

Quarterly revenue rose less than 1 percent to $4.64 billion, compared with $4.66 billion expected by analysts. Operating expenses rose 1.3 percent, even as fuel and oil costs fell 5.6 percent.

Tags: ,

Next Up

More on Skift

7 Aviation Trends We’re Tracking at Skift This Week
eDreams Shuffles CEOs and Appoints Philip Wolf as Chairman
Readers Sound off on the Current State of United Airlines
Watch This Free Webinar on Using Twitter to Increase Travel and Tourism