Southwest Airlines Tops Estimates

Southwest Airlines (LUV Quote) beat analysts' estimates in the third quarter, buoyed by improved revenue trends and cash settlements from fuel hedging.

Excluding one-time items, the carrier reported earnings of $69 million, or 9 cents a share. Analysts surveyed by Thomson Reuters had estimated 7 cents. Revenue rose 11.7% to $2.9 billion, slightly exceeding the consensus forecast. The carrier said cash-settlement gains of $448 million from fuel contracts are reflected in its profit.

Including $247 million in charges, primarily related to mark-to-market adjustments for its fuel-hedge portfolio, Southwest reported a third-quarter loss of $120 million. The amount reversed mark-to-market gains that had been recognized in prior periods. ...