Higher passenger volumes drive Southwest profit beat

Southwest edged past expectations for Q4 profit Thursday, helped by a small increase in unit revenue per seat driven by higher overall passenger numbers. The carrier said it expects Q1 unit revenue, which compares ticket sales with flight capacity, to increase in the 1-2% range, compared to last year. In Q4 ended Dec. 31 the measure rose 1.9%. Average passenger fares, however, were down 2.7% and shares of Southwest dipped in premarket trading after a torrid Wednesday for airline stocks driven by growing fears of a price war in the sector. The airline said net income rose to $1.89b, or $3.18 per share, from $522m, or $0.84 per share, a year earlier. That was largely driven by a $1.4b benefit due to tax reform legislation. Operating revenue, however, also rose 3.9% to $5.27b. <br/>