(Reuters) - Southwest Airlines Co (N:LUV) on Thursday reported a quarterly profit above analysts' estimates and said it expected unit revenue to rise "modestly" in the second quarter.
The U.S. budget carrier, whose shares rose 4 percent in premarket trading, said it had earned $511 million in the first quarter, up from $453 million a year earlier.
Excluding special items, the profit was 88 cents per share. Analysts on average were expecting 84 cents, according to Thomson Reuters I/B/E/S.
The airline offered a bright picture of U.S. travel demand that contrasted with Wednesday's report from bigger rival United Continental Holdings Inc (N:UAL), which said flights were exceeding consumer interest.
"Solid bookings and revenue trends have continued," Southwest Chief Executive Officer Gary Kelly said in a news release.
Southwest also said it had moved up plans to retire classic Boeing Co (N:BA) 737 jets in its fleet to no later than the third quarter of 2017 from 2018 to resolve uncertainty about U.S.-mandated pilot training requirements for flying those aircraft and their next-generation model, the Boeing 737 MAX.
This will result in fewer aircraft and lower growth in flight capacity than Southwest previously forecast, it said.