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

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

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