Transport Airlines

Southwest Says Lower Fuel Costs, Higher Fares Boost 4Q Profit

Jan 23, 2014 9:20 am

Skift Take

This is Southwest’s 41st consecutive year of profitability, which is track record that few other airlines can match.

— Samantha Shankman

The Future of Meetings in the Hospitality Industry

Kiichiro Sato  / AP Photo

In this Wednesday, Jan. 8, 2014, photo, Southwest planes line up in Chicago. Southwest reports quarterly earnings on Thursday, Jan. 23, 2014. Kiichiro Sato / AP Photo


Southwest Airlines is making more money thanks to a lower fuel bill and higher average fares.

The company said Thursday that fourth-quarter net income was $212 million, up from $78 million a year earlier.

The airline says that excluding special items it earned 33 cents per share. Analysts were expecting 29 cents per share, according to a FactSet survey. Revenue is up 6.1 percent to $4.43 billion, above analysts’ forecast of $4.39 billion.

The increase in net income can be credited to a 9.2 percent drop in fuel spending, a savings of $138 million. Labor costs are up 7.3 percent, however.

The average fare on Southwest is $156.05 each way, up $8 or 5.4 percent from a year earlier.

Copyright (2014) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More on Skift

The Booking Habits of Hostel Guests Around the Globe
The New Mobile Booking Solution for Small Airlines
The Biggest Issues Faced by Elderly Travelers at American Airports
How to Find the ‘Holistic Traveler’ Trapped in Your Data

We're the Moneyball of the Travel Industry

We know what's coming next in travel. Subscribe to the newsletter and get all the goodness in your inbox daily.