NewsSOS
Southwest Airlines posted a second-quarter profit gain of more than 9%, the company said, as higher fares helped the carrier absorb a climbing fuel tab. The stronger result did not carry into the forward view.
Southwest's third-quarter forecast fell short, with fuel costs still rising. Fare revenue covering the fuel line Higher fares have increasingly covered what Southwest pays for fuel, the company reported.
That dynamic drove the second-quarter profit increase.
Fuel is the dominant variable cost for any carrier, and Southwest's ability to pass expense into ticket prices has determined where the bottom line lands in recent quarters.
Keep reading