Southwest reports Q1 profit



Southwest Airlines Co. (NYSE: LUV) has reported its first quarter 2018 results, the company said.

First quarter 2018 operating income was USD 616 million, compared with USD 606 million in first quarter 2017. Excluding special items, first quarter 2018 operating income was USD 584 million, compared with USD 574 million in first quarter 2017.

Other expenses in first quarter 2018 were USD 14 million, compared with USD 74 million in first quarter 2017. The USD 60 million difference resulted primarily from USD 4 million in other losses recognized in first quarter 2018, compared with USD 63 million in first quarter 2017.

In first quarter 2017, these losses included ineffectiveness and unrealized mark-to-market amounts associated with a portion of the company´s fuel hedge portfolio, which are special items. Excluding these special items related to fuel hedging, other losses were USD 4 million in first quarter 2018, compared with other gains of USD 2 million in first quarter 2017. Net interest expense in first quarter 2018 was USD 10 million, compared with USD 11 million in first quarter 2017.

First quarter 2018 net income was USD 463 million, or a first quarter record USD .79 per diluted share, compared with first quarter 2017 net income of USD 339 million, or USD .55 per diluted share. Excluding special items, first quarter 2018 net income was USD 438 million, or USD .75 per diluted share, compared with first quarter 2017 net income of USD 359 million, or USD .58 per diluted share, and compared with First Call first quarter 2018 consensus estimate of USD .74 per diluted share.

Due to revisions to its future fleet order book with Boeing, the company now estimates its 2018 capital expenditures to be in the USD 2.0 to USD 2.1 billion range.