Southwest Lifts Q2 Profit 31 Percent

Southwest Airlines reported second-quarter earnings up 31 percent from a year earlier to USD$608 million.

The Dallas-based airline said it expects passenger revenue per available seat mile to fall 1 percent in the third quarter.

Southwest's capacity has grown significantly as it added longer flights from its headquarters at Dallas Love Field Airport, causing its unit revenue in the second quarter to fall 4.7 percent.

"While some yield softness has continued into July, demand thus far remains strong (in the third quarter)," chief executive Gary Kelly said, adding that he was "very pleased" with the revenue outlook.

The airline also forecast that unit costs will decline about 1 percent in the third quarter and about 2 percent for 2015, compared to the same periods a year ago.

It said it expects to pay about USD$2.20 per gallon of fuel in the third quarter, compared to USD$2.94 per gallon a year earlier.