Southwest Airlines on Thursday reported net income of $98 million, or 13 cents a share, for the first quarter.
Excluding special items such as fuel hedging, the Dallas-based carrier showed a smaller-than-expected net loss of $18 million. Analysts had expected a 5-cent-a-share loss. Southwest had net income of $20 million, or .03 cents per diluted share, in the first quarter of 2011.
Operating income was $22 million, compared with $114 million in the first quarter of 2011. Company officials said the sharp decline was driven by a $478 million increase in first-quarter fuel costs compared with the first quarter last year.
Dallas-based Southwest, the third-largest carrier at Denver International Airport, said traffic and bookings look solid in April.
“Despite a modest loss, excluding special items, our first-quarter results were notable, with outstanding revenue production and, except for jet fuel, better-than-expected operating costs,” Southwest chief executive Gary Kelly said in a statement.
