Southwest Airlines Co. (LUV) is a low-cost passenger carrier that provides scheduled air transportation in the United States. The carrier also plans to expand its international operations to 50 international destinations. Recently, it completed the acquisition of AirTran Holdings, which now operates as a wholly owned subsidiary under the name AirTran Airways.
Lower fuel prices, continuous expansion of routes and winning of slots at the Reagan and LaGuardia airports will certainly boost its capacity and network presence. Meanwhile, integration of AirTran will boost Southwest Airlines’ operational and financial performance.
Currently, Southwest Airlines has a Zacks Rank #1 (Strong Buy), but that could definitely change following Southwest Airlines’ earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Southwest Airlines beat on earnings. Our consensus earnings estimate called for EPS of $0.54/share, and the company reported EPS of $0.59 instead. Investors should note that these figures take out stock option expenses.
Revenue: Southwest Airlines reported revenues of $4,628 million. This outpaced our consensus estimate by $4,590 million.
Key Stats to Note: Southwest Airlines reported massive growth in operating income for the reported quarter buoyed by lower fuel prices while Passenger revenue per available seat mile (PRASM) increased 2.6% year over year.
Stock Price: Southwest Airlines were up almost 4.26% in the early trading. Clearly, the initial reaction to the release is positive.
Check back later for our full write up on this Southwest Airlines earnings report later!
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