$LUV (+0.96%) | Southwest Airlines Q3'24 Earnings Highlights:

🔹 Adjusted EPS: $0.15 (Est. $0.07)🟢

🔹 Operating Revenue: $6.87B (Est. $6.81B) 🟢; UP +5.3% YoY

Segments Revenue:

🔹 Passenger: $6.25B (Est. $6.16B) 🟢; UP +5.7% YoY

🔹 Freight: $43M (Est. $45.9M)😕; DOWN -2.3% YoY

🔹 Other: $577M (Est. $588.7M)😕; UP +1.4% YoY

Operational Metrics:

🔹 ASM: 45.22B (+2.4% YoY)

🔹 RPM: 36.74B (+3.1% YoY)

🔹 Load Factor: 81.2% (vs. 80.7% YoY)

🔹 RASM: $13.82 (+3.3% YoY)

🔹 Yield per Passenger Mile: $17.01 (+2.5% YoY)

🔹 Average Passenger Fare: $175.97 (+5.2% YoY)

Business and Strategic Updates:

🔸 Economic Fuel Cost: $2.55 per gallon, including 7c/gallon premium expense and 2c/gallon favorable cash settlements from fuel derivatives

🔸 Aircraft Delivery: 20 Boeing 737-8 deliveries expected in 2024; delays may extend into 2025

🔸 Q4 Capacity Guidance: ASMs to decline ~4%; RASM to rise 3.5%-5.5% YoY

🔸 Capital Spending: Revised FY24 capex to ~$2.1B, with ~$825M for aircraft

🔸 Liquidity: $9.4B in cash and cash equivalents; fully available $1B credit line

🔸 Shareholder Returns: Returned $431M to shareholders through dividends YTD

Relevant Excerpts:

🔸 "Record Q3 performance for both operating and passenger revenues driven primarily by yield improvements from capacity moderation and progress in managing tactical initiatives."

🔸 "Continue to take urgent steps to control costs, including offering voluntary time off programs and controlling hiring to address overstaffing."

🔸 "Savings from the cost plan announced last month expected to ramp up to $500M in annual run rate savings by 2027."