Southwest Airlines Reports Soaring Results

Southwest Airlines soared to a $159 million profit for the second quarter Thursday, speeding past last year's results of $113 million and landing ahead of Wall Street's expectations.

For the quarter, Southwest's hedges saved it about $196 million, Kelly said.

Next year, the hedge will cover 65 percent of fuel purchases at $32 per barrel.

"Although we remain well-hedged, our employees understand that we must be prepared for higher fuel costs," Kelly said. "They are working harder than ever to reduce our cost structure through increased productivity."

Southwest's stock (ticker: LUV) jumped 44 cents, or more than 3 percent, in trading Thursday to close at $14.42 per share.

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