Southwest Profit Rises 12% on Greater Traffic

Southwest Airlines Co. said third-quarter net income rose 12% as the company flew more passengers and purchase contracts helped reduce the effect of record jet fuel prices.

Net income increased to $119 million, or 15 cents a share, from $106 million, or 13 cents, a year earlier, Southwest said. Sales rose 7.8% to $1.67 billion. The airline was expected to earn 12 cents a share, the average estimate in a Thomson First Call survey of analysts.

Southwest, the first major U.S. airline to report results for the quarter, is the only major carrier to remain profitable since the 2001 terrorist attacks.

The airline’s shares rose 57 cents to $14.14 on the NYSE.