UPDATE: Southwest Airlines Q4 Profit Beats Views, Shares Surge

Shares of

jumped more than 4% in pre-market trading after the company reported upbeat fourth-quarter results. The Dallas, Texas-based company posted quarterly net earnings of $190 million, or $0.28 per share, compared to $212 million, or $0.30 per share, in the year-ago quarter. Excluding non-recurring items, the company's adjusted earnings came in at $0.59 per share. Its revenue climbed 4.5% to $4.63 billion. However, analysts were expecting earnings of $0.55 per share on revenue of $4.59 billion. Load factor widened to 82.0% from 80.4%, while economic fuel costs shrank to $2.62 a gallon from $3.05. Passenger revenue reached $4.4 billion, a 2.6% rise on a unit basis. Operating income in the quarter jumped to $621 million from $386 million. Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, said, "Our balance sheet and liquidity remain strong, with cash and short-term investments of $3.0 billion at the end of 2014. We generated strong free cash flow of $1.1 billion in 2014, allowing us to repurchase $955 million of Southwest common stock, pay $139 million to Shareholders in dividends, and reduce debt and capital lease obligations by $261 million, net, during the year.” Southwest Airlines shares gained 4.35% to $43.65 in pre-market trading.