Turns out Southwest Airlines really isn't immune to the industry's hardships. The low-fare airline's ability to maintain profitability through recent rough patches earned it Wall Street's admiration.

But during the past year, Southwest has hit some turbulence. For one thing, its fuel hedges aren't providing as much protection against rising oil prices, and the company's profits are shrinking.

The company's shares had fallen 10 percent since last June before Chief Executive Gary Kelly outlined a strategy to restore its profit growth last month on the airline's 30th anniversary as a public company. Kelly's action plan has lifted shares more than 3 percent in recent trading. Shares closed yesterday unchanged at $15.55.

Among other things, the Dallas-based carrier plans to curtail its fleet expansion, enhance its fare structure and launch a new advertising campaign.

"Given the slowing U.S. economy and fuel cost pressures, we are taking these steps to adjust our capacity rate, which will help to restore profit growth," Kelly said last month. "In this economic environment, we simply need to take less risk and grow more slowly."

Analyst Ray Neidl of Calyon Securities maintained his "neutral" rating on the airline company.

"The operating model is not broken as some say," Neidl wrote in a research note, "but needs modification now with tougher competition from revitalized network and low-cost carriers."