Southwest Airlines Co. , the top U.S. carrier by market value, Wednesday said fourth-quarter earnings fell, depressed by record fuel prices.
The Dallas-based company reported profit of $56 million, or 7 cents a share, compared with $66 million, or 8 cents a share, a year earlier.
Analysts on average had estimated quarterly profit at 8 cents a share, according to Reuters Estimates.
Southwest, a discount carrier which has been a beacon of profitability in a U.S. industry buffeted by surging fuel prices, fare wars and overcapacity, said revenue rose to $1.66 billion from $1.52 billion.
"The industry revenue environment continues to be a challenge due to the glut of airline seats," Southwest Chief Executive Officer Gary Kelly said in a statement. "On balance, our fourth quarter revenue challenges are continuing into 2005."
