Southwest Airlines’ Q2 Profits Dropped as Costs Went Up
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.
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.