Southwest profit up on cheaper fuel
Southwest reported Q4 net profit of US$536m, up from US$190m in Q4 2014. Earnings before special items rose 46% to US$591m, as the falling cost of jet fuel added US$189m to Southwest's bottom line. Including special items such as the change in the market value of Southwest's outstanding hedges, the company earned US$536m. The US budget airline said it would soon start a US$500m accelerated stock buyback. Southwest said it expected Q1 unit revenue to be "in line" with a year earlier. The measure fell 0.7% in Q4. "We've seen a continuation of strong demand and softer yields," or fares per mile per passenger, CE Gary Kelly said. Cheap oil has also forced Southwest to pay hefty sums to counter-parties in hedge contracts that the carrier acquired for protection in case of rising energy prices. As a result, it will not reap the full benefit of cheaper fuel.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-01-22/unaligned/southwest-profit-up-on-cheaper-fuel
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Southwest profit up on cheaper fuel
Southwest reported Q4 net profit of US$536m, up from US$190m in Q4 2014. Earnings before special items rose 46% to US$591m, as the falling cost of jet fuel added US$189m to Southwest's bottom line. Including special items such as the change in the market value of Southwest's outstanding hedges, the company earned US$536m. The US budget airline said it would soon start a US$500m accelerated stock buyback. Southwest said it expected Q1 unit revenue to be "in line" with a year earlier. The measure fell 0.7% in Q4. "We've seen a continuation of strong demand and softer yields," or fares per mile per passenger, CE Gary Kelly said. Cheap oil has also forced Southwest to pay hefty sums to counter-parties in hedge contracts that the carrier acquired for protection in case of rising energy prices. As a result, it will not reap the full benefit of cheaper fuel.<br/>
