SOUTHWEST REPORT 14% PROFIT JUMP.

Byline: Evan Pondel Staff Writer

Southwest Airlines reported a 14 percent jump in first-quarter profits Monday, a boon to the low-fare carrier and a positive sign for the airports it serves.

Southwest posted first-quarter earnings of $24 million, or 3 cents a share, compared with $21 million, or 3 cents a share, in the same period a year ago. Revenue rose 7.5 percent to $1.35 billion from $1.26 billion. The Dallas-based company managed to dodge an industrywide malaise amid the lingering effects of the 2001 terrorist attacks and the war in Iraq.

``The quarter was good, but it wasn't quite as good as it could have been,'' Gary Kelly, chief financial officer, said during a conference call Monday. ``We experienced some pretty terrific weather problems, which, coupled with the war, caused us to lose some momentum.''

Not even war has caused a serious diversion in the company's course; with Monday's first-quarter results, Southwest has reported 48 consecutive quarters of net income. To do that, the company has focused on keeping its costs under control, Kelly said.

Of Southwest's most prolific markets, California and Nevada are still the top performers. And Kelly said the company has plans to grow in each of these markets.

Southwest has served Burbank Airport since the early 1990s. Before the airline arrived, the airport was languishing as other carriers went out of business. Southwest emerged at the airport offering 16 flights a day - six to Las Vegas and 10 to Oakland. ``Their walk-up fares for $59 to Oakland at the time were hard to beat,'' said Victor Gill, an airport spokesman.

Southwest now handles about 60 percent of all departures out of Burbank and about 11.5 percent of the flights leaving Los Angeles International Airport. The airline's success has trickled down to the airports' concessions as the more people entering the airport to fly Southwest, the better the airport's overall revenues, Gill said.

``They (Southwest) have played a dominant role in the airport's success,'' he said.

Despite Southwest's positive play at Burbank, the airline is still not immune to industry woes.

``Since the war began, our bookings for the second-quarter 2003 have softened,'' James Parker, vice chairman and chief executive officer, said in a statement.

Southwest isn't alone.

After the 9-11 terrorist attacks, U.S. airlines have furloughed tens of thousands of employees, grounded part of their fleets and still lost record amounts of money - $7.7 billion in 2001 and an estimated $10 billion or more last year, according to The Associated Press. Several major carriers have entered into bankruptcy or are considering restructuring.

By comparison, Southwest - which started in 1971 as a small shuttle serving Dallas, Houston and San Antonio, Texas - hasn't lost money since 1991, and the company has exercised options to acquire four more planes in 2004.

``And barring any unforeseen event, we expect to be profitable in the second quarter of 2003,'' Parker said.

Southwest fell 36 cents to close at $15.16 Monday on the New York Stock Exchange.

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SOUTHWEST FLIES AHEAD OF RIVALS

SOURCE: The companies

Associated Press