Southwest posts 2Q profit of $161 million

By DAVID KOENIG | August 4, 2011 | 8:00 AM EDT

DALLAS (AP) — Southwest Airlines is making more money than it did a year ago because of higher fares and the acquisition of AirTran Airways.

But fuel costs are up 64 percent from a year ago, and Southwest's profit isn't as big as analysts expected.

Southwest said Thursday that it earned $161 million in the April-through-June quarter. That's up from $112 million a year ago.

The average fare went up about 8 percent. Southwest and other airlines raised prices several times this year to offset rising fuel costs.