Southwest Reports $34 Million First-Quarter Profit

Southwest Airlines said its first quarter earnings were lower as it struggled with the effects of a weak economy and record fuel costs. Quarterly net profit for Southwest was $34 million, or 5 cents per share, down from $93 million, or 12 cents per share, in the same period last year.

Excluding one-time items, profit was $43 million, or 6 cents a share, compared to $33 million, or 4 cents a share in the year-ago period. At the same time, the airline pointed out that it had record first quarter revenues of $2.53 billion, up 15 percent and that its net income was up 30 percent.

Southwest CEO Gary Kelly said the airline was concerned about fuel costs and, in an effort to restore its profit margins, will do a rigorous review of its flight schedule to eliminate nonproductive flying.

It still plans to accept 23 new Boeing 737-700s this year, but is reviewing its plan to retire 22 aircraft. It will reduce fleet growth in 2009.