Southwest Airlines beat profit estimates in Q3 with forecasted revenue increase; announced cost-cutting measures

From CNBC: 2024-10-24 06:58:45

Southwest Airlines third-quarter profit exceeded Wall Street estimates, with a forecasted unit revenue increase of 3.5% to 5.5% for the upcoming quarter. The carrier reported a 4% drop in capacity compared to the previous year and projected a potential cost increase of up to 13%, excluding fuel. Sales outlined a three-year plan increasing earnings before interest and taxes by $4 billion in 2027, authorizing a $2.5 billion stock buyback and cutting underperforming flights to save costs. Southwest will now charge for seats and offer extra legroom options to shift from open seating. In the third quarter, the airline reported revenue of $6.87 billion, a more than 5% increase over the previous year, with net income falling 65% from the year before. Adjusted net income of $89 million, or 15 cents per share, was reported, beating analyst expectations for a break-even on an adjusted basis.



Read more at CNBC:: Southwest Airlines (LUV) 3Q 2024 earnings