Southwest posts record first-quarter profit

Southwest said its profit rose nearly 13% in its first quarter, beating Wall Street expectations, as it filled planes and kept costs in check with cheap fuel.

Net income rose to $511 million, or 79 cents per share, from $453 million, or 66 cents per share, during the first quarter of last year.

On an adjusted basis, the nation's largest low-fare carrier said it earned 88 cents per share. Analysts were expecting earnings per share of 84 cents, according to Zacks Research.

The strong financial performance reflects the impact of several dramatic shifts that have occurred over the last two years, from the integration of merger partner AirTran, to the elimination of restrictions on long-distance flights out of Dallas Love Field and Southwest's launch of international service.

“This year is a follow-through to healthy expansion beginning in 2014,’’ Gary Kelly, Southwest's CEO,  said during an earnings call Thursday with investors.

Kelly also said in a statement that continuing demand and strong financial performance in April bode well for the second quarter. "Solid bookings and revenue trends have continued, thus far, in April, and we currently expect modest operating unit revenue growth in second quarter 2016, year-over-year,"  he said.

Southwest also gave back $596 million to investors with a mix of dividends and share buybacks during the first three months of 2016.

Southwest shares traded 1.5% higher on Thursday afternoon to $47.73.