Were it not for fuel hedging losses, Alaska Airlines would have posted record net income during the third quarter. But unlike Southwest, which was pushed into the red, Alaska retained profitability by posting USD77.5 million in net income, down from the USD122.4 million posted in 3Q2010. Excluding special items, the company would have bested 3Q2010 income of USD118.1 million by posting net income of USD131.1 million.

Analysts expected USD118.5 million in profits for the quarter. The company noted a 12% increase in operating revenues of USD130 million as fuel prices offset traffic gains. Higher advanced bookings and load factor boosted Alaska’s confidence that demand is remaining stable.