Southwest Airlines posts quarterly profit

Southwest Airlines on Thursday reported a slightly higher first-quarter profit as soaring fuel costs hurt the low-fare carrier's bottom line.

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The Dallas-based airline said earnings rose to $26 million, or 3 cents per share, from $24 million, or 3 cents a share, a year earlier.

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Southwest said its net income included $18 million of expenses for consolidating its reservation operations.

Excluding those expenses, analysts had expected Southwest to earn 5 cents a share, with estimates ranging from 3 cents to 6 cents, according to Reuters Research, a unit of Reuters Group Plc.