No-frills giant in warning to Branson

SOUTHWEST Airlines has confirmed its status as the only major US carrier to report consistent profits since 9.11 with a report which will sound warning bells for Virgin Group's Sir Richard Branson. The airline will be a major rival should he go ahead with plans to launch a low-cost US airline next year.

Southwest's net profit was $246m (£155m) more than double the $102m for the same period last year. It also said it was boosting its fleet by up to 17 Boeing 737-700s next year.

Relatively unknown in the UK, 32-year-old Southwest is the goliath in America's low-cost airline market, providing a model copied by European budget carriers such as Ryanair.

It started as a regional Texas-based airline and now flies to 58 cities and carries more than 60m passengers a year. It has grown to be America's fourth-largest carrier by pledging to keep roundtrip fares below $299.