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Southwest Airlines Swings to Q3 Profit

But revenue was flat and the airline said it will cut costs


Southwest Airlines (NYSE:LUV) announced on Thursday that it earned $16 million during the third quarter, compared to a loss of $140 million in the same period last year. Adjusted EPS came in 13 cents, topping Wall Street, which expected earnings of 12 cents a share, Reuters noted.

The airline recorded quarterly revenue of $4.3 billion, flat compared to last year.

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Shares of Southwest moved up fractionally in Thursday afternoon trading.

The company noted that business passenger airfares slid during the quarter, causing the company’s average fare to dip to $142.86, down from $143.03.

Airline officials said that revenue per available seat mile was flat during the third quarter, but moved up about 4% in October. Operating expenses increased 4.2% over last year, driven by a 10% rise in repair costs.  Southwest Airlines said it would attempt to trim costs further.

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