Group 1: Earnings Performance - Southwest Airlines reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.15 per share a year ago, representing an earnings surprise of +1,000.00% [1] - The company posted revenues of $6.95 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.29%, compared to $6.87 billion in the same quarter last year [2] - Over the last four quarters, Southwest has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Southwest shares have increased by approximately 3.2% since the beginning of the year, while the S&P 500 has gained 14.5% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.69 on revenues of $7.53 billion, and $1.03 on revenues of $28.17 billion for the current fiscal year [7] Group 3: Industry Context - The Transportation - Airline industry, to which Southwest belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5] - The current Zacks Rank for Southwest is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6]

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Southwest Airlines Co. (NYSE: LUV) breached their fiduciary duties to shareholders. If you currently own Southwest stock and acquired shares on or before February 4, 2020, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to lear. ...

Core Insights - The carrier experienced a positive demand inflection in early July, which continued to gain momentum in the following months [1] - This increase in demand contributed to a total operating revenue rise of 1.1%, reaching a record $6.95 billion for the third quarter [1]

Core Insights - The airline reported a surprise profit, which has generated optimism for continued growth momentum [1] Group 1 - The unexpected profitability of the airline indicates a potential shift in financial performance, suggesting improved operational efficiency and demand recovery [1] - Analysts are now revising their forecasts for the airline industry, anticipating a more favorable outlook based on this performance [1] - The positive results may encourage further investments in the airline sector, as stakeholders look for signs of sustained recovery [1]

Southwest Airlines' shares rose 3% in after-hours trading Wednesday after the airline posted a surprise quarterly profit and noted that both demand and fares are on the rise.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 expectedRevenue: $6.95 billion vs. $6.92 billion expectedIn July, Southwest joined other airlines in cutting its 2025 profit forecast, which it r ...

Southwest Airlines surprisingly reported a third-quarter profit on Wednesday, helped by stronger revenue and lower-than-expected operating costs. ...

Core Insights - Southwest Airlines reported strong third quarter 2025 financial results, with unit revenues, unit costs, and net income all exceeding expectations, indicating effective execution across the business [1][3][7] Company Highlights - The CEO emphasized substantial progress in the company's transformation, with profitable results and reaffirmation of full year 2025 EBIT guidance [3][4] - The company is currently leading in operational performance according to the Wall Street Journal's airline rankings, reflecting the strength of its strategic plan and execution [3] - The company returned $439 million to shareholders through dividends and share repurchases, demonstrating commitment to shareholder value [7][23] Financial Performance - Third quarter 2025 operating revenues reached a record $6.9 billion, a 1.1% increase year-over-year, driven by better-than-anticipated unit revenues [7][11] - Net income for the third quarter was $54 million, or $0.10 per diluted share, down from $67 million or $0.11 per diluted share in the previous year [7][27] - The company expects fourth quarter 2025 unit revenues to increase by 1% to 3% year-over-year, with capacity up approximately 6% [12][14] Cost Management - The company achieved a year-over-year increase in CASM-X of 2.5%, which was below guidance, indicating effective cost management [15][14] - The company continues to target a $370 million cost reduction for the year, with expectations for fourth quarter CASM-X to be flat to up 1% year-over-year [14][15] Capacity and Fleet Management - Full year 2025 capacity is expected to increase by roughly 1.5%, including adjustments related to extra legroom seating retrofits [18][19] - The company updated its fleet planning to include 53 -8 aircraft deliveries in 2025, up from a prior estimate of 47 [19] Liquidity and Capital Deployment - As of the end of the third quarter 2025, the company had $3.0 billion in cash and cash equivalents, with a fully available revolving credit line of $1.5 billion [23] - Capital expenditures for the third quarter were $678 million, primarily driven by aircraft-related spending [22][23]

SOUTHWEST AIRLINES REPORTS RECORD THIRD QUARTER REVENUE, STRONG EXECUTION OF TRANSFORMATIONAL INITIATIVES CONTINUES DALLAS, TEXAS - October 22, 2025 - Southwest Airlines Co. (NYSE: LUV) (the "Company") today reported its third quarter 2025 financial results, with unit revenues, unit costs, and net income all exceeding its expectations and strong execution continuing across the business. Company Highlights: Bob Jordan, President, Chief Executive Officer, & Vice Chairman of the Board of Directors, stated, "We ...

Industry Overview - The Zacks Transportation sector is facing challenges due to increased expenses, inflation-driven high interest rates, a decline in freight demand, and supply-chain issues [1][2] - Geopolitical uncertainties and tariff-related economic tensions are negatively impacting consumer sentiment and growth expectations [1] Economic Factors - Inflation concerns and risks of an economic slowdown are likely to increase market volatility [2] - Supply-chain disruptions are expected to keep costs elevated in the near future [2] Oil Prices Impact - A decrease in oil prices by 4.2% during the July-September 2025 period is anticipated to positively affect the profitability of transportation companies, as fuel costs are a major expense [3] Company Earnings Expectations - Investors are awaiting earnings results from Southwest Airlines Co. (LUV), Union Pacific Corporation (UNP), American Airlines Group Inc. (AAL), and Norfolk Southern Corporation (NSC), all scheduled for release this week [4] Southwest Airlines (LUV) - LUV is expected to report a 1.3% increase in passenger revenues compared to the third quarter of 2024 [6] - The Zacks Consensus Estimate for LUV's third-quarter 2025 revenues is $6.97 billion, reflecting a 1.44% year-over-year growth [7] - LUV's earnings estimate has been revised upward by over 100% in the past 60 days to 1 cent per share, but this represents a 93.33% decline from the previous year's actual [7][8] Union Pacific Corporation (UNP) - The Zacks Consensus Estimate for UNP's third-quarter 2025 revenues is $6.23 billion, indicating a 2.34% increase year-over-year [9] - Freight revenues are estimated at $5.86 billion, a 1.7% increase from the previous year, while other revenues are expected to decline by 3.6% [9] - The earnings estimate for UNP is $2.99 per share, reflecting an 8.73% increase from the year-ago actual [10][11] American Airlines Group Inc. (AAL) - AAL's loss estimate for the third quarter has widened to 27 cents per share, compared to a profit of 30 cents in the same quarter last year [12] - The Zacks Consensus Estimate for AAL's revenues is $13.63 billion, indicating a slight decline of 0.13% year-over-year [13] - AAL's earnings prediction does not suggest a likely earnings beat, with an Earnings ESP of -0.68% and a Zacks Rank of 3 [14] Norfolk Southern Corporation (NSC) - The earnings estimate for NSC has been revised downward by 4.50% to $3.18 per share, indicating a 2.15% decline from the previous year [15] - The revenue estimate for NSC is $3.09 billion, reflecting a 1.26% year-over-year growth [15] - E-commerce demand is expected to support shipment volumes, but challenges such as inflation, high interest rates, and weak freight demand may negatively impact performance [16][17]

Market Overview - Pre-market futures are showing a flat trend with a slight downward bias following a record closing high for the Dow on Tuesday [1] - The Dow is down 9 points, S&P 500 is up 3 points, Nasdaq is down 38 points, and Russell 2000 is down 9 points at this hour [1] Federal Reserve Insights - Fed Governor Michael Barr is scheduled to make appearances ahead of the upcoming monetary policy decision from the FOMC [2] - Analysts are nearly unanimous in expecting a 25 basis-point rate cut next Wednesday, which would lower the Fed funds rate to a range of 3.75-4.00% [2] Q3 Earnings Reports - **AT&T (T)**: Reported Q3 earnings of 54 cents per share, missing estimates by 1 cent, with revenues of $30.71 billion, down 0.81% from estimates. Shares are down 1.6% [3] - **Thermo Fisher (TMO)**: Reported earnings of $5.79 per share, beating estimates of $5.50, with revenues of $11.12 billion, exceeding expectations by 2%. Shares are up 2% [4] - **GE Vernova (GEV)**: Reported earnings of $1.64 per share, missing the consensus of $1.78 by 7.87%, but revenues of $9.97 billion were 8.62% higher than anticipated. Shares are up 3.8% [5] - **Teck Resources (TECK)**: Reported earnings of 55 cents per share, surpassing projections by 41%, with revenues of $2.46 billion, exceeding consensus by 14.3%. This company may gain relevance due to rare earth negotiations with China [6] Upcoming Earnings Expectations - **Tesla (TSLA)**: Expected to report negative earnings per share, down 26.4% year over year, but with a 5% increase in revenues. Shares are up 9.6% year to date [7] - **IBM**: Anticipated to report earnings 6% higher and revenues up 7.57% for the quarter, with shares having gained 28% since the start of the year [9] - **Southwest Airlines (LUV)**: Facing a tough year-over-year comparison with expected earnings growth down 93% but a slight revenue increase of 1.44% [9]