Southwest sees record profit in third quarter

Buoyed by lower fuel costs and planes that are fuller than they've ever been, Southwest reported record profits and operating income for the third quarter.

The low-cost carrier posted a $329 million profit, or 48 cents per share, counting special items, a record for the July-September period. Not counting special items, the airline also saw a record profit of $382 million or 55 cents per share, a roughly 62% increase over the third quarter in 2013.

It also had record operating income of $614 million in the July-September period.

"Our third quarter 2014 cost performance benefited from lower jet fuel prices and our fleet modernization efforts,'' Gary Kelly, Southwest's CEO said in a statement. "With these trends continuing, we are poised for another solidcost performance for fourth quarter 2014.''

The third quarter had several milestones for Southwest, which merged with AirTran in 2011. The carrier, which flies more domestic fliers than any other airline launched international sevice on July 1, heading to destinations in the Carribbean and Mexico that were previously part of AirTran's schedule. The switchover of AirTran's international service to Southwest will be complete in November, when Southwest launches flights to Mexico City and Punta Cana, Dominican Republic.

And on October 13, most of the restrictions imposed by the Wright Amendment, which limited the ability of Southwest and other carriers to fly long-haul routes from Dallas Love Field, expired. Southwest has begun offering nonstop flights to seven destinations, and has announced service to several more.