A Southwest Airlines jet approaches Midway Airport on Dec. 15, 2023, in Chicago. (John J. Kim/Chicago Tribune/Tribune News Service via Getty Images)
John J. Kim | Chicago Tribune | Getty Images
Southwest Airlines on Wednesday posted a surprise profit for the third quarter and forecast better travel demand and higher fares for the fourth quarter.
The carrier said it expects unit revenue to rise between 1% and 3% during the final three months of the year, with capacity up 6% over the same period last year.
“This guidance range assumes demand strength remains at current levels through the end of the quarter,” Southwest said.
Here’s how Southwest performed in the third quarter compared with Wall Street expectations, according to consensus estimates from LSEG:
- Earnings per share: 11 cents adjusted vs. loss of 3 cents expected
- Revenue: $6.95 billion vs. $6.92 billion expected
In July, Southwest joined other airlines in cutting its 2025 profit forecast, which it reaffirmed Wednesday. The Dallas carrier said it expected full-year earnings before taxes of $600 million to $800 million, down from an earlier forecast of $1.7 billion. It reaffirmed that earnings outlook on Wednesday.
The carrier has been working to better compete with rivals and increase sales, abandoning longtime policies like open seating and two free checked bags for each traveler.
Southwest’s third-quarter profit fell more than 19% year over year to $54 million from $67 million. On a per-share basis, Southwest’s earnings fell to 10 cents from 11 cents a year earlier. Adjusting for one-time items, Southwest reported $58 million in earnings or 11 cents a share.
Revenue rose 1% to $6.95 billion from the year-earlier period.
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