Southwest Airlines Co. reported it nearly tripled its profit in the final quarter of the year as the company continues to soar on cheap fuel and the modernization of its fleet.
The No. 4 U.S. airline by traffic said its fuel and oil expense dropped 37% in the latest quarter.
The average cost of fuel was $2.03 a gallon, compared with $2.62 in the period last year.
The airline estimates fuel costs in the current quarter will be about $1.70 a gallon, compared with $2 a gallon in first quarter last year.
Chief Executive Gary Kelly pointed to strong free cash flow of $1.1 billion in 2015, and said Southwest intends to repurchase an additional $500 million of stock under an accelerated share repurchase program, to be launched soon.
