Categories AlphaGraphs, Earnings

Despite fuel price woes, Southwest Airlines hovers above Q3 estimates

America’s largest low-cost carrier, Southwest Airlines (LUV), reported third-quarter operating revenues of $5.57 billion, up 5.1% year-over-year, despite being weighed down by the rising fuel prices. The higher revenues, combined with a cut down in the federal income taxes, helped the company post adjusted earnings of $1.08 per share, up 16.1%.

On a reported basis, third-quarter earnings rose to $615 million, or $1.08 per share, from $528 million, or $0.88 per share in the year-over period.

Analysts had, on an average, expected the company to post earnings of $1.06 per share on a revenue of $5.56 billion.

CEO Gary C. Kelly said, “Based on our second half 2018 revenue trends, we are well-positioned for year-over-year unit revenue growth in 2019, with easier year-over-year comparisons in first half. We also will continue to experience year-over-year unit cost inflation in 2019, excluding fuel and oil expense and profit-sharing expense, of at least 3%, as we continue investing in and deploying new operations, technology, and airport infrastructure to support future growth.”

While revenue per available seat mile (RASM) edged up 1.2% during the quarter, passenger yield gained 2.3%. The company also reported that passengers paid 2.5% higher fares to use its services, compared to last year.

Southwest Airlines stock jumps on Q2 earnings beat

The company added that it sees 1% to 2% growth in RASM in 2018. Capacity growth for this period is estimated to be around 4%.

LUV shares were trading in red during pre-market trading on Thursday. The stock has dropped about 17% so far this year.

American Airlines (AAL) stock gained 3.8% during pre-market trading today after reporting better-than-expected Q3 earnings.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Dollar Tree (DLTR): Key points of note from the Q3 2024 earnings report

Shares of Dollar Tree, Inc. (NASDAQ: DLTR) rose over 2% on Wednesday after the company delivered better-than-expected earnings results for the third quarter of 2024. The discount retailer beat estimates

FL Earnings: Foot Locker Q3 2024 adj. profit rises; sales down 1%

Foot Locker, Inc. (NYSE: FL), a leading footwear and apparel retailer, reported an increase in adjusted profit for the third quarter of 2024 and a modest decrease in sales. Net sales

Infographic: How The Campbell’s Company (CPB) performed in Q1 2025

The Campbell's Company (NASDAQ: CPB) reported net sales of $2.8 billion for the first quarter of 2025, up 10% from the same period a year ago. Organic sales decreased 1%.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top