Southwest Loses Money In 1st Quarter DALLAS, TX (KERA) - Southwest Airlines, which flies more domestic passengers than any other carrier, lost money in the first quarter. That hadn't happened since 1991. KERA's Bill Zeeble has more

Southwest, headquartered in Dallas, says it lost 91 million dollars in the first quarter, compared to making millions a year ago. After excluding losses tied to fuel costs, the company says a share was down by 3 cents, which was worse than analysts expected. Southwest is offering buyouts to most workers, has imposed a wage freeze, and stopped its fleet growth.

CEO Gary Kelly says Southwest faces its toughest revenue environment ever.

Kelley: We need to focus on the prime challenge at hand which is surviving this difficult recession, difficult revenue environment, and sustaining our profit, cash flow, and financial health.

Kelly says he's optimistic more passengers will fly Southwest when it adds New York City and Boston to its schedule, with sale-priced fares. And he says the profit loss would NOT lead to baggage fees, which other carriers have implemented.

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