Southwest Profit Up; Continental Trims Loss

Southwest Airlines Co. increased first-quarter profit and Continental Airlines Inc. narrowed its loss as more people flew than at the start of 2003, when the Iraq war and the severe acute respiratory syndrome virus reduced travel.

Net income rose 8.3% to $26 million at Southwest, the largest low-fare airline, as sales increased 9.8% to $1.48 billion. The net loss at Continental, the fifth-biggest U.S. carrier, shrank by almost half to $124 million as revenue climbed 11% to $2.27 billion.

Shares of Dallas-based Southwest fell 23 cents to $14.83 on the NYSE. Houston-based Continental declined 11 cents to $12.25, also on the NYSE.