Low-Cost Air Carriers Post Profit Gains
From Reuters
Southwest Airlines Inc. and America West Holdings Corp. posted quarterly profits, highlighting the success of low-cost carriers in an industry where bigger rivals are still losing millions.
Dallas-based Southwest, consistently profitable because of one of the lowest cost structures in the industry, said fourth-quarter net income rose 57% to $66 million, or 8 cents a share. Revenue rose 8% to $1.52 billion.
Southwest shares rose 39 cents to $15.49 on the NYSE.
America West, the Phoenix-based parent of America West Airlines reported a profit of $6.8 million, or 13 cents a share, versus a loss of $52 million, or $1.54, a year earlier. Revenue rose 8% to $554 million.
America West shares rose 3 cents to $12.69, on the NYSE.
