$LUV (-2,47聽%) | Southwest Airlines Q3'24 Earnings Highlights:
馃敼 Adjusted EPS: $0.15 (Est. $0.07)馃煝
馃敼 Operating Revenue: $6.87B (Est. $6.81B) 馃煝; UP +5.3% YoY
Segments Revenue:
馃敼 Passenger: $6.25B (Est. $6.16B) 馃煝; UP +5.7% YoY
馃敼 Freight: $43M (Est. $45.9M)馃槙; DOWN -2.3% YoY
馃敼 Other: $577M (Est. $588.7M)馃槙; UP +1.4% YoY
Operational Metrics:
馃敼 ASM: 45.22B (+2.4% YoY)
馃敼 RPM: 36.74B (+3.1% YoY)
馃敼 Load Factor: 81.2% (vs. 80.7% YoY)
馃敼 RASM: $13.82 (+3.3% YoY)
馃敼 Yield per Passenger Mile: $17.01 (+2.5% YoY)
馃敼 Average Passenger Fare: $175.97 (+5.2% YoY)
Business and Strategic Updates:
馃敻 Economic Fuel Cost: $2.55 per gallon, including 7c/gallon premium expense and 2c/gallon favorable cash settlements from fuel derivatives
馃敻 Aircraft Delivery: 20 Boeing 737-8 deliveries expected in 2024; delays may extend into 2025
馃敻 Q4 Capacity Guidance: ASMs to decline ~4%; RASM to rise 3.5%-5.5% YoY
馃敻 Capital Spending: Revised FY24 capex to ~$2.1B, with ~$825M for aircraft
馃敻 Liquidity: $9.4B in cash and cash equivalents; fully available $1B credit line
馃敻 Shareholder Returns: Returned $431M to shareholders through dividends YTD
Relevant Excerpts:
馃敻 "Record Q3 performance for both operating and passenger revenues driven primarily by yield improvements from capacity moderation and progress in managing tactical initiatives."
馃敻 "Continue to take urgent steps to control costs, including offering voluntary time off programs and controlling hiring to address overstaffing."
馃敻 "Savings from the cost plan announced last month expected to ramp up to $500M in annual run rate savings by 2027."