Southwest beats Q3 profit forecasts

Southwest overcame hurricanes, higher fuel prices and slightly lower fares to boost Q3 profit 30%. The airline predicted Thursday that a measure of pricing power will be stronger in the fourth quarter than it was in the third, in line with forecasts from rivals. A key to the quarter was Southwest's ability to hold labor costs in check while benefiting from solid travel demand that is lifting the US airline industry. Southwest said it earned $503mi, up from $388m a year earlier. CEO Gary Kelly and other executives were scheduled to speak with analysts later Thursday. Investors will be looking for reassurance that Southwest won't grow too fast and put down downward pressure on fares. Regular customers will be more interested to hear more about Southwest's recently announced plan to begin flying to Hawaii. The airline hasn't said when those flights will start. Excluding special items such as costs to settle fuel-hedging contracts, the Dallas company said it earned 88 cents per share. Revenue was up 3% to $5.27b, just shy of expectations. Southwest cancelled 5,000 flights and lost $100m in revenue in Q3 due to hurricanes — Harvey shut down its operations in Houston for several days.<br/>