Southwest Airlines reports a rare quarterly loss due mainly to fuel hedging

Southwest Airlines Company (Dallas) today reported its third quarter 2011 results. The Company reported a third quarter 2011 net loss of $140 million, or $.18 per share, which included $262 million (net) of unfavorable special items. This compared to net income of $205 million, or $.27 per diluted share, for third quarter 2010, which included favorable special items totaling $10 million (net). The Company’s operating income was $225 million for third quarter 2011, compared to $355 million for third quarter 2010. Excluding special items, third quarter 2011 net income was $122 million, or $.15 per diluted share, compared to net income of $195 million, or $.26 per diluted share, in third quarter 2010. This exceeded Thomson’s First Call mean estimate of $.14 per diluted share for third quarter 2011.

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Copyright Photo: Bruce Drum.