Southwest Airlines Co. (LUV) reported a loss of $140 million in earnings for the third quarter of 2011, down from a profit of $205 million last year.
"Our economic fuel costs per gallon," Gary C. Kelly, Southwest CEO and Chairman of the Board said, "increased approximately 34 percent compared with the third quarter last year. This surge in fuel costs caused our quarterly profits to decline despite record revenue results."
Southwest's expenses ballooned from about $2860 million last year to $4537 million, when all expenses were accounted for. As Kelly reported, Southwest revenue rose, reporting $4311 million in revenue, compared with the $3192 million reported last year.
Earnings per share declined 18 cents, while last year's quarter reported a gain of 27 cents.
Kelly was optimistic about the company's future. "While it is disappointing to report a decline earnings excluding special items, I was pleased with our strong third quarter revenue performance," he said.
Southwest purchased AirTran in May of this year. The company was also optimistic about this acquisition. "I am pleased with the overall progress we are making on our AirTran integration," Kelly said. He expects to have both flight networks connected by the first half of next year.
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