Southwest Airlines income cut in half
Fourth quarter 2012 net income was $.11 per diluted share, compared to $.20 per diluted share, in Q4 year before, which included $86 million (net) of favorable special items. Excluding special items, fourth quarter 2012 net income was $65 million, or $.09 per diluted share, which was comparable to fourth quarter 2011.
For the full year of 2012, net income was $421 million, or $.56 per diluted share, which included $4 million (net) of favorable special items. This compared to $178 million, or $.23 per diluted share, in full year 2011, which included $152 million (net) of unfavorable special items. Excluding special items, full year 2012 net income was $417 million, or $.56 per diluted share, compared to net income of $330 million, or $.43 per diluted share, for full year 2011.
Operating income for full year 2012 was $623 million, compared to $693 million for full year 2011. Excluding special items, operating income for full year 2012 was $838 million, which was comparable to full year 2011.
Gary C. Kelly, chairman of the board, president, and chief executive officer, said that "2012 was a year of tremendous progress. Our profits, excluding special items, of $417 million grew 26 percent as compared to 2011 and represented our 40th consecutive year of profitability. Without a doubt, this is a remarkable feat and a record unmatched in the airline industry. These solid earnings were achieved despite significant efforts and costs related to critical strategic initiatives."
Fourth quarter 2012 operating revenues were a fourth quarter record $4.2 billion, bringing full year 2012 operating revenues to more than $17 billion. Company has $3 billion in cash and short term investments
The company said that bookings and revenue trends suggest a year-over-year improvement in January 2013 passenger unit revenues in the two to three percent range and reported strong bookings for the remainder of first quarter. ■