Southwest Airlines: Q2 Profit Rises, Tops Forecasts

The airline benefited from higher ticket prices during the quarter

By Christopher Freeburn, InvestorPlace Writer

Southwest Airlines (NYSE:LUV) announced that it earned $228 million during its second quarter, shrugging off higher fuel costs. That was up from $161 million during the same time last year.

Adjusted EPS for the quarter was 36 cents, topping the 33 cents predicted by Wall Street analysts, Bloomberg noted.

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Investors were unimpressed. Shares of Southwest Airlines slipped about 1% in Thursday midday trading.

The airline saw revenue during the second quarter rise 4.7% to $4.62 billion. Analysts had been looking for $4.59 billion. The number of passengers carried remained flat compared to last year, but prices jumped 4.9% on average, which offset a 3.3% rise in fuel expenses.

Company officials said the airline is on track to produce record annual earnings and will not expand its fleet of jets for at least a year.

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