Southwest Airlines (LUV) Falls Hard on Dismal Q3

Core Insights - Southwest Airlines Co. (NYSE:LUV) experienced a significant decline in stock price, dropping 6.25% to $31.65 following disappointing third-quarter earnings results [1] - The company's net income fell by 19.4% to $54 million compared to $67 million in the same quarter last year, while total operating revenues increased slightly by 1.1% to $6.95 billion from $6.87 billion year-on-year [2] - Despite the poor earnings performance, Southwest Airlines maintained its EBIT outlook for full-year 2025, projecting between $600 million and $800 million [2] Financial Performance - For the fourth quarter, Southwest Airlines anticipates a 6% increase in available seat miles (ASM) and expects operating revenues per ASM (RASM) to grow between 1% and 3% [3] - The company’s President and CEO, Bob Jordan, expressed optimism about the results and expects improvements in the fourth quarter and into the next year [3] Future Outlook - The company is encouraged by the early indicators for its new assigned and extra legroom seating products, indicating positive momentum and confidence in future growth [4]