Southwest, Continental Airlines Profits Rise on Fares (Update2)

Oct. 18 (Bloomberg) -- Southwest Airlines Co. and Continental Airlines Inc. said third-quarter profits rose as increased travel demand let them fill more seats at higher fares.

Southwest, the biggest low-fare airline, said today that net income more than tripled from a year earlier to $162 million. Earnings at Continental, the fourth-largest U.S. carrier, rose 1.7 percent to $241 million.

AMR Corp.'s American Airlines and Delta Air Lines Inc. also posted higher profits this week. So-called legacy carriers such as Continental, American and Delta boosted ticket prices at least four times in the quarter as fuel costs rose, and Southwest increased fares twice. Most legacy airlines also slowed U.S. growth and expanded internationally, where demand was stronger.

``It looks like it's going to be a good quarter for the airlines,'' said Ray Neidl, a Calyon Securities analyst in New York.Audio Cables