Southwest's First Quarter Earnings Are Out & Profit Has Been Gained For The 64th Consecutive Year!!

Southwest has reported their 2007 first quarter earnings on April 19th and the numbers show that the airline continues to have a profitable year, for the 64th year in a row. Southwest is proud of their achievements however, the profit is below what it was last year at this time. Southwest's CEO explained that the profits are lower this year due to the high cost of fuel and the earnings last year were exceptionally strong. Southwest's total costs for 2007 were 1.7 % higher than 2006.

The Southwest website states that the "Net income for first quarter 2007 was $93 million, or $.12 per diluted share, compared to $61 million, or $.07 per diluted share, for first quarter 2006. Economic net income for first quarter 2007 was $33 million, or $.04 per diluted share, compared to $64 million, or $.08 per diluted share, for first quarter 2006. This economic net income result is in line with First Call's mean estimate of $.04 per diluted share for first quarter 2007."

The financial highlights that Southwest experienced in the 2007 first quarter are...

• Record first quarter revenues of $2.2 billion, up 8.9 percent
• Economic net income of $33 million, down 48.4 percent
• Economic net income per diluted share of $.04, down 50 percent
• Repurchased 13.5 million shares of common stock for $209 million

Given the fact that Southwest has experienced an increase in total costs and a decrease in total profit in comparison to last years numbers, the airline will still continue to value their customers as they always do and will stay dedicated to maintaining their signature low fare tickets. Southwest did a web cast on April 19th to discuss the first quarter of 2007 financial results.