Southwest Airlines – the biggest passenger carrier within the United States – recently surprised analysts with their second quarter profits at $112 million, up by 23% from last year. This reflects a $0.15-per share price.
Except for the impact of fuel hedging, this means a $0.29-per share earning. Revenues totaled $3.17 billion, outperforming the industry at a time of economic recession. The predicted income of the airline was pegged at only $3.15 billion by analysts polled by Thomson Reuters.
Reported numbers also show that the airlines' per gallon fuel costs jumped 32% to $2.37 outside of taxes. Similarly, load factor increased to 79.3% from last year's 77% while traffic is at 2.7% as capacity dipped 0.3%.
Well-known in the industry as the discount giant, Southwest Airlines is believed to have greatly benefited from a recovery that lifted airline performance recently. The airline's discount program is believed to have been responsible for the income growth.