Southwest Airlines Co (LUV) Reports Q3 2023 Earnings
Southwest Airlines Co (NYSE:LUV) reported a net income of $193 million, or $0.31 per diluted share in Q3 2023.
The company's net income, excluding special items, stood at $240 million, or $0.38 per diluted share.
Southwest Airlines Co (NYSE:LUV) recorded a record Q3 operating revenue of $6.5 billion.
The company's liquidity was reported at $12.7 billion, well above its outstanding debt of $8.0 billion.
Southwest Airlines Co (NYSE:LUV) released its third quarter 2023 financial results on October 26, 2023. The company reported a net income of $193 million, or $0.31 per diluted share. Excluding special items, the net income stood at $240 million, or $0.38 per diluted share. The company also reported record third quarter operating revenues of $6.5 billion.
Company Performance and Financial Highlights
Southwest Airlines Co (NYSE:LUV) reported strong financial results for the third quarter of 2023. The company's revenue strength was driven by solid leisure demand throughout the quarter and by managed business continuing to perform largely as expected. The company also reported liquidity of $12.7 billion, well in excess of its outstanding debt of $8.0 billion.
Bob Jordan, President and Chief Executive Officer, stated,
Overall, we are pleased with our accomplishments in third quarter 2023. We generated another quarter of profitability and record third quarter operating revenues."
Financial Tables and Guidance
The company provided financial guidance for the fourth quarter and full year 2023. For the fourth quarter, the company expects RASM to be down 9% to 11% year-over-year, and ASMs to be up approximately 21% year-over-year. The company also expects economic fuel costs per gallon to be between $2.90 to $3.00.
For the full year 2023, the company expects ASMs to be up 14% to 15% year-over-year, and economic fuel costs per gallon to be between $2.85 to $2.95. The company also expects CASM-X to be down 1% to 2% year-over-year.
Company's Outlook and Future Plans
Southwest Airlines Co (NYSE:LUV) is optimistic about the future. The company plans to slow its ASM growth rate in 2024 to absorb current capacity, mature development markets, and optimize schedules to current travel patterns. The company is also focused on operational excellence and driving out inefficiencies, increasing productivity, improving reliability, and returning its margins back to historical levels.
The company also secured a cost-effective order book with The Boeing Company to continue the modernization of its fleet and provide plenty of flexibility to adjust its growth up or down to match the dynamic environment.
Southwest Airlines Co (NYSE:LUV) also reached a tentative agreement for its Flight Attendants, which is a positive step towards maintaining a harmonious working environment.
Explore the complete 8-K earnings release (here) from Southwest Airlines Co for further details.
This article first appeared on GuruFocus.
