$LUV (+1.05%) | 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."
