In an unusual circumstance reflecting losses on its fuel hedging positions, Southwest Airlines posted a third quarter net loss of USD140 million missing analysts’ expectations which had the airline earning USD104.5 million. However, it managed an 8% pre-tax return on invested capital for the 12 months ending 30-Sept-2011. The loss was the first since 2009.

Despite the grim number, Southwest posted record revenues, load factor, passenger revenues, revenue yields and unit revenues driven by strong load factors. Still, its third quarter net represents a USD345 million swing from the USD205 million net income posted in 3Q2010. It pointed out the performance in 3Q2010 included favorable special items totalling USD10 million as opposed to the USD262 million in net unfavourable special items in this year’s third quarter.