Southwest Airlines reports increase in annual profits

Southwest Airlines reported its fourth quarter and full year 2012 results. Fourth quarter 2012 net income was $78m which included $13 million (net) of favorable special items. This compared to net income of $152m in fourth quarter 2011, which included $86m (net) of favorable special items. Excluding special items, fourth quarter 2012 net income was $65m, which was comparable to fourth quarter 2011. For the full year of 2012, net income was $421m, which included $4m (net) of favorable special items. This compared to $178m, in full year 2011, which included $152m (net) of unfavorable special items. Excluding special items, full year 2012 net income was $417m, compared to net income of $330m for full year 2011. Operating income for full year 2012 was $623m, compared to $693m for full year 2011. Excluding special items, operating income for full year 2012 was $838m, which was comparable to full year 2011.