Southwest Airlines Corp. (NYSE: LUV) reported fourth-quarter and full-year 2015 results before markets opened on Thursday. The low-cost carrier reported quarterly adjusted EPS of $0.90 on revenues of $4.98 billion. In the fourth quarter of 2014, the airline posted EPS of $0.59 on revenues of $4.63 billion. Analysts were expecting Southwest to post third-quarter EPS of $0.90 on revenues of $5 billion.

For the full year, Southwest reported adjusted EPS of $3.52 and revenues of $19.82 billion, compared with $2.01 EPS and revenues of $18.61 billion in 2014. Analysts were expecting EPS of $3.52 on revenues of $19.68 billion.

The airline’s fourth-quarter total operating revenues benefited by approximately $125 million due to an accounting change related to the company’s co-branded credit card agreement with Chase. Southwest anticipates a similar benefit of $110 million in the first quarter of 2016.

CEO Gary Kelly said:

Record revenues, low fuel prices, and continued cost controls resulted in record operating income of $4.0 billion, and a strong operating margin of 20.1 percent, both excluding special items. We generated strong free cash flow of $1.1 billion in 2015, allowing us to return $1.4 billion to Shareholders. Based on our current outlook, we expect strong free cash flow to continue in 2016 and intend to repurchase an additional $500 million of Southwest common stock under an accelerated share repurchase program, which will be launched soon.

Fourth-quarter 2015 fuel costs came in at $2.03 per gallon, including $0.52 per gallon in unfavorable cash settlements from fuel derivative contracts, compared with $2.62 per gallon in fourth quarter 2014, including $0.03 per gallon in unfavorable cash settlements from fuel derivative contracts. Excluding fuel and special items, fourth-quarter operating costs rose 8.1% compared with the same period in 2014. Including fuel and all other costs, operating costs rose 7% year over year.

Southwest expects first-quarter operating unit revenues to be “in line” with the first quarter of 2015. The airline also expects “modest” unit cost inflation in the quarter and “another quarter of strong margins.” First quarter 2016 economic fuel costs are expected to be approximately $1.70 per gallon, compared with first quarter 2015 economic fuel costs of $2.00 per gallon.

Analysts are looking for first-quarter EPS of $0.82 on $4.77 billion in revenues. For the full 2016 fiscal year, EPS is pegged at $4.19 on revenues of $20.83 billion.

Southwest’s shares traded higher in Thursday’s premarket, up 1.5% to $39.90, in a 52-week range of $31.36 to $51.34. The consensus price target on the stock is $54.23.

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