Yet another fourth quarter loss! This one from the Dallas-based Southwest Airlines!

Southwest reported its net loss of $56 million, or 8 cents per share, in the fourth quarter, in striking contrast to its $111 million, or 15 cents per share, profit in the same quarter a year earlier.

The loss this time around is inclusive of the $117 million of charges that went towards the adjustment of one-time charges of its fuel hedging portfolio. Those charges excluded, the company announced its $61 million, or 8 cents per share, profit for the quarter, in comparison to the $87 million, or 12 cents per share, figures a year back.

By far, the most economical airlines in the US, Southwest has been, over the past few years, benefiting from its far-sighted fuel-hedging program. However, of late, the company has taken the blow from the rapidly falling oil prices; now expecting to pay 16-17 cents per gallon more than the market prices for aircraft fuel during the next three years.

In order to offset the effects of the fairly low oil prices at present, the airline has downsized its hedges to provide for only about 10 percent of its five-year fuel requirements.

Anticipating in advance, the airline remarked about the "notable softness" in post-January bookings, more so as the economic downturn begins taking its toll on the business as well as leisure travel demand in the US!