Southwest Airlines Co LUV reported better-than-expected earnings for the first quarter. The company also reported a 7.1 percent rise in its Q1 traffic.
The Dallas, Texas-based company posted quarterly earnings of $453 million, or $0.66 per share, versus $152 million, or $0.22 per share, in the year-ago period. However, analysts were expecting earnings of $0.65 per share.
Its total operating revenue rose 6.0 percent to $4.4 billion. Analysts expected revenue of $4.41 billion.
Economic fuel costs slipped to $2.00 per gallon in the first quarter, from $3.08 per gallon in the year-ago quarter.
Total operating expenses slipped 8.0 percent to $3.6 billion in the latest quarter, while operating income jumped to $780 million from $215 million.
As of April 22, 2015, Southwest had around $3.4 billion in cash and short-term investments.
During the quarter, the company repurchased $300 million in common stock.
The average estimate among 26 Estimize users was for earnings of $0.65 per share and revenue of $4.42 billion.
Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, "We are thrilled to report an exceptionally strong first quarter 2015 earnings performance. Our net income, excluding special items, of $451 million, or $.66 per diluted share, far surpasses any first quarter profit in our history and represents our eighth consecutive quarter of record profits."
Southwest shares gained 1.05 percent to $43.30 in pre-market trading.
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