Southwest Airlines posted a third-quarter net loss of $120 million

Resulting from a $247 million charge related to its fuel hedge portfolio, . Excluding all one-time items, the company earned $69 million in net income compared with $156 million a year earlier. Southwest recorded an 18 percent jump in average fare during the quarter to $124.38, and an 11 percent increase in total passenger revenue. The airline currently plans to reduce first quarter 2009 capacity by between 5 percent and 6 percent.