Southwest profits despite 'stunning' rise in fuel costs |
| USA Today - Aug 4, 2011 |
Southwest Airlines announced a second-quarter profit of $161 million this morning.
Despite finishing the quarter in the black, The Associated Press writes Southwest's profit came against the backdrop of a "stunning" rise in fuels costs.
Reuters writes Southwest "said its fuel costs rose 64% from a year earlier," adding that the carrier has responded with a decision to "(trim) winter flying schedule and 2012 capacity plans."
"Given the pessimistic near-term outlook for fuel prices and the U.S. economy, we have reevaluated our capacity plans," Southwest CEO Gary Kelly says in a statement.
With that, the Fort Worth Star-Telegram writes Southwest becomes "the latest carrier to announce changes to its capacity plans. With rising fuel prices and a sluggish economy, the carrier said it will keep 2012 capacity flat compared to this year. Its 2011 capacity will grow 4%-5% compared with 2010."
Read Full Article from USA Today
- Posted: 2011-08-04 09:58:31
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