Southwest Airlines Reports 4th Quarter / Full Year Profit for 2009

Southwest Airlines Co. beat analysts’ estimates as it reported net income of $116 million for the fourth quarter, helping it avoid its first annual loss since 1972.

Excluding special items, the Dallas-based earned $74 million, or 10 cents a share, compared to the consensus estimate of 7 cents a share.

Although the company remained profitable, the results fell short of its earnings a year earlier. Southwest earned $99 million, or 13 cents a share, in 2009, compared to $178 million, or 24 cents a share.

Excluding special items, Southwest earned $143 million, or 19 cents share, in 2009, compared to $294 million, or 40 cents a share, in 2008.

“In what has been, perhaps, the most difficult revenue environment the airline industry has ever faced, we are extremely proud to report our 2009 earnings, which represents our 37th consecutive year of profitability,” Southwest chairman and chief executive officer Gary Kelly said.

“To report any profit in these times is a major accomplishment, and I could not be more proud of our employees who worked so hard to finish the year strong with a fourth quarter and full year profit,” he said.

Kelly said unit revenues, or revenues per available seat mile flown, increased 7.4 percent in the fourth quarter.

By comparison, Continental Airlines reported on Thursday that its unit revenues declined 8.6 percent in the fourth quarter compared to a year earlier, and American Airlines Inc. said Wednesday that its passenger unit revenues fell 4.3 percent.

“With strong revenue and booking trends continuing thus far into 2010, we expect another year-over-year increase in unit revenue for first quarter 2010,” Kelly said.

He said Southwest has no plans at present to increase capacity in 2010.

(Terry Maxon - Dallas Morning News)