Southwest 2Q profit up 23%

Southwest Airlines Co.'s second-quarter profit rose 23 percent, beating analysts' estimates as Philadelphia's second-busiest carrier benefited from an improving economy and increased passenger travel.

Southwest, the nation's largest discount-fare airline, reported second-quarter earnings of $112 million, or 15 cents a share, up from $92 million, or 12 cents a share a year earlier. Revenues rose 21 percent, to $3.17 billion.

"Although business demand has not fully recovered, it has strengthened, and consumer travel demand is robust," said chief executive Gary Kelly. "We see no signs that the momentum will stall in the second half 2010."

The earnings were the second best in Southwest's history, after the second quarter 2006, he said.

Excluding special items, earnings climbed to $216 million, or 29 cents a share, from $59 million, or 8 cents per share, in the year-earlier quarter, the airline said. Analysts surveyed by Thomson Reuters had forecast earnings of 27 cents on $3.15 billion in revenue.    - Linda Loyd