Southwest Airlines Co. (LUV) reported income of $61 million up slightly from $59 million in the year-ago period. The carrier said income rose 49% to $64 million from $43 million last year. Operating revenue rose 21% to $2.02 billion.
General Motors Corp. (GM), the world's largest automaker, reported a sixth straight quarterly loss that beat analysts' estimates, helped by a smaller loss in its North American auto operations and a profit in Europe. The first-quarter net loss narrowed to $323 million from $1.25 billion a year earlier. Revenue rose 14 percent to $52.2 billion. GM has scaled back as Toyota and Honda win more sales, cutting the U.S. automaker's share of its home market to 26.2 percent last year, the lowest since 1925.
GM is reducing pension and health- care benefits, trimming 30,000 jobs in North America and closing nine plants, as well as selling assets such as 51 percent of GM's finance unit to raise money to help fund new models. One analyst said "These numbers, they're OK. They're a little better than expected. It's like a drop in the ocean.'' If they are going to return to profitability, they need to become more competitive on the auto front and not just with big trucks and SUVs.