The earnings call reflected a balanced outlook with strong financial performance and strategic progress offset by significant cost pressures, Boeing delivery uncertainties, and weather-related disruptions. The company is focused on executing its transformational plan while navigating external challenges.

Company Guidance

During the Southwest Airlines Q3 2024 earnings call, the executives provided comprehensive guidance on several key metrics and strategic initiatives. They reiterated their commitment to achieving a 15% or higher return on invested capital (ROIC) by 2027, well above the company's cost of capital. For the third quarter, Southwest reported record operating revenues of nearly $7 billion, with a unit revenue increase of 2.8% year-over-year. The company aims to increase capacity by 1% to 2% in 2025 without additional aircraft capital expenditure, leveraging initiatives like red-eye flights and reduced turn times. Cost management remains a priority, with efforts to enhance efficiency targeting over $500 million in run-rate savings by 2027. The fourth-quarter revenue per available seat mile (RASM) is expected to rise by 3.5% to 5.5% compared to the previous year. Additionally, the company has outlined a fleet monetization strategy that could contribute approximately $4 billion in incremental EBIT by 2027, separate from its core business operations.

Record Operating Revenues

Southwest Airlines achieved third-quarter record operating revenues of nearly $7 billion, with a unit revenue increase of 2.8% compared to last year.

Industry-Leading Operational Performance

Southwest led the industry with the best on-time performance and completion factor of any major domestic airline in the third quarter, despite challenging weather.

Progress on Strategic Initiatives

The airline is on track with its strategic initiatives, including signing direct lodging partners for Getaways by Southwest and preparing for a new premium cabin configuration.

Strong Balance Sheet and Shareholder Returns

Southwest ended the third quarter with a net cash position and announced a new $2.5 billion share repurchase program, expected to be significantly earnings accretive.

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Southwest Airlines (LUV) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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LUV Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 30, 2025	2024 (Q4)	0.39 / -	0.37	―	―	―
Oct 24, 2024	2024 (Q3)	0.05 / 0.15	0.38	-60.53% (-0.23)	―
Jul 25, 2024	2024 (Q2)	0.52 / 0.58	1.09	-46.79% (-0.51)	―
Apr 25, 2024	2024 (Q1)	-0.34 / -0.36	-0.27	-33.33% (-0.09)	―
Jan 25, 2024	2023 (Q4)	0.12 / 0.37	-0.38	197.37% (+0.75)	―
Oct 26, 2023	2023 (Q3)	0.38 / 0.38	0.5	-24.00% (-0.12)	―
Jul 27, 2023	2023 (Q2)	1.09 / 1.09	1.3	-16.15% (-0.21)	―
Apr 27, 2023	2023 (Q1)	-0.23 / -0.27	-0.32	15.62% (+0.05)	―
Jan 26, 2023	2022 (Q4)	-0.07 / -0.38	0.14	-371.43% (-0.52)	―
Oct 27, 2022	2022 (Q3)	0.41 / 0.50	-0.23	317.39% (+0.73)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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LUV Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 24, 2024	$30.73	$29.02	-5.56%
Jul 25, 2024	$26.45	$27.91	+5.52%
Apr 25, 2024	$28.94	$26.92	-6.98%
Jan 25, 2024	$30.56	$29.86	-2.29%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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