Southwest Airlines posted a $16 million net loss for the third quarter compared with a $120 million net loss a year earlier

. Excluding one-time items, the company achieved a $23 million profit. "Sixty days ago, even a modest profit seemed unattainable," according to CEO Gary Kelly. Southwest's average third-quarter fare was down 8.4 percent to $113.95. The carrier plans to cut fourth-quarter capacity by about 8 percent.