Southwest Airlines Reports Higher Revenue for Q4
Southwest Airlines reports higher revenue and adjusted earnings for Q4, exceeding expectations. Plans to counter rising costs through strategic initiatives and cutting back on hiring.
Southwest Airlines has announced higher revenue for the fourth quarter of the year, and the company has unveiled plans to counteract rising costs. Despite reporting a loss of $219 million or 37 cents per share, the airline's results were in line with the previous year's figures. However, after adjusting for one-time items and new union contracts, the adjusted earnings stood at 37 cents per share, exceeding analysts' expectations of 12 cents per share.
The good news continued as revenue witnessed an almost 11% increase to $6.82 billion, surpassing analyst expectations of $6.75 billion. CEO Bob Jordan expressed satisfaction with the strong service metrics achieved in the critical holiday season following a challenging operational period during the previous year's holiday travel. November and December demand exceeded projections.
Despite these positive results, Southwest Airlines is bracing for non-fuel costs to rise by 6% to 7% in 2024. However, it plans to combat this by implementing strategic initiatives and cutting back on hiring. The airline is also eagerly awaiting deliveries of dozens of Boeing aircraft. Southwest clarified that the arrival of Boeing 737-7 planes is contingent upon certifications and approvals from the Federal Aviation Administration (FAA). While hopeful, Southwest offers no guarantees about meeting estimated delivery expectations.