Categories Analysis, Industrials

What to look for when Southwest Airlines (LUV) reports Q4 2023 earnings

Southwest expects capacity for the fourth quarter to be up around 21% YoY

Shares of Southwest Airlines Co. (NYSE: LUV) rose over 1% on Thursday. The stock has gained 17% in the past three months. The airline is scheduled to report its earnings results for the fourth quarter of 2023 on Thursday, January 25, before markets open. Here’s a look at what to expect from the earnings report:


Analysts are projecting revenue of $6.74 billion for the fourth quarter of 2023, which would represent a 9% growth from the same period a year ago. In the third quarter of 2023, operating revenues increased 5% year-over-year to $6.5 billion.


The consensus estimate for EPS in Q4 2023 is $0.12. This compares to an adjusted loss of $0.38 per share reported in Q4 2022. In Q3 2023, the company reported adjusted EPS of $0.38.

Points to note

In its investor update provided in December, Southwest said travel demand and yields remained healthy in the fourth quarter of 2023, with strong leisure demand and record revenue during the Thanksgiving holiday. Close-in bookings, including managed business bookings, were better than expected in November through mid-December. Therefore the company expects its unit revenues for the fourth quarter to be down 9-10% year-over-year, instead of its previous expectation of down 9-11%.

Southwest expects capacity for the fourth quarter to be up around 21% YoY. Economic fuel costs are expected to range between $3.00-3.10 versus the prior range of $2.90-3.00. Operating costs, excluding fuel, (CASM-X) is projected to be down 16-19% YoY.

Looking ahead to 2024, Southwest said it expects year-over-year capacity growth of 10-12% for the first quarter and 6-8% for the full year. The airline also stated that “the annual goal for capacity beyond 2024 is now for low-to-mid single-digit YoY ASM growth with low single-digit YoY trip growth.”

Listen to the conference calls as they happen. Don't miss a beat! With AlphaStreet Intelligence, you can listen to live calls and interviews as they happen, so you never have to worry about missing out on important information.

Most Popular

Home Depot (HD) Q4 2023 Earnings: Key financials and quarterly highlights

Home Depot (NYSE: HD) reported fourth quarter 2023 earnings results today. Sales were $34.8 billion, down 2.9% from the same quarter a year ago. Comparable sales decreased 3.5%.  Net earnings were $2.8

Nvidia (NVDA) is set to report Q4 2024 results. Here is what to expect

Nvidia Corporation (NASDAQ: NVDA) has emerged as the frontrunner in providing cutting-edge solutions to enterprises for ramping up their generative AI deployments. The chipmaker is thriving on the rapid transition

Hasbro vs. Mattel: Here’s how these toymakers fared in Q4 2023

Leading toymakers Hasbro, Inc. (NASDAQ: HAS) and Mattel, Inc. (NASDAQ: MAT) reported their fourth quarter 2023 earnings results this month. Both companies performed differently, with Hasbro coming out of a

Add Comment
Viewing Highlight