Southwest Airlines Co
Southwest's shares rose in premarket trading.
The discount carrier, which plans to acquire rival AirTran Holdings Inc
Excluding the effect of fuel contracts, profit came to 15 cents a share, in line with average analyst expectations, according to Thomson Reuters I/B/E/S.
Revenue rose nearly 15 percent to $3.11 billion, compared with $3.08 billion expected by analysts. Passenger revenue was up 14 percent.
Total expenses were up 14 percent as fuel and oil costs spiked 18 percent. Costs tied to maintenance and repairs were 20 percent higher.
Many U.S. airlines have seen revenue and profits improve in the past year after the 2008-09 economic downturn affected travel demand. Earlier this week, Delta Air Lines Inc
But spiking oil prices have renewed worries about the strength of the airline industry's recovery.
Southwest shares were $12.90 in premarket trading, up from Wednesday's close of $12.83 on the New York Stock Exchange.
(Reporting by Karen Jacobs; Editing by Gerald E. McCormick and Maureen Bavdek)