Summary Box: Southwest posts net loss for 3Q

AP News
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Posted: Oct 20, 2011 4:47 PM
Summary Box: Southwest posts net loss for 3Q

RARE LOSS: Southwest Airlines Co. reported a $140 million loss for the third quarter, its first since the same period in 2009. The results were hurt by higher fuel costs than a year ago, and by markdowns of fuel-hedging contracts designed to insulate Southwest from fuel spikes.

HIGHER FARES: Without the hedges and other special items, Southwest would have earned $122 million, or 15 cents per share. That's the way analysts look at companies, and on that basis, they expected Southwest to earn 14 cents per share. Southwest was helped by fares that rose an average 7.4 percent from last year.

SOLID DEMAND: Southwest said bookings were solid through October. Its positive comments reassured investors that travel demand is holding up despite the weak economy. Southwest shares rose on the report.