Photo: Wikimedia Commons
Southwest Airlines Co. posted Q2 earnings of $161 million or $0.21 per diluted share, up from $112 million, or $0.15 per diluted share. Excluding special items however, Q2 2011 net income was $121 million, or $0.15 per diluted share, down from $216 million, or $0.29 per diluted share a year ago. And earnings missed estimates of $0.20 per share.
The earnings also include the results of AirTran, which Southwest acquired in May this year.
Total operating revenue climbed to $4.1 billion, but CEO Gary C. Kelly admitted, “with with our economic fuel costs rising 72%, our year-over-year revenue growth could not keep pace.”
Airline industry’s share prices have been down 15% this year according to the IATA, and early results for Q2 airline profits reflect the first year-on-year decline in eight quarters.
In an interview with CNBC, CEO Gary C. Kelly said:
“There was no guidance provided for AirTran, but any way you look at it we did $0.15 a share, and that was down 48% compared to last year and pretty much all about fuel.”
Kelly added that revenues were pushed by the passenger side of the business, while the cargo business continued to lag its passenger business. The stock is down 25.6% year-to-date, but was up on the news.