Southwest Airlines Saw Q4 Earnings Hit Due To December Flight Disruptions, Books $800M Charge

  • Southwest Airlines Co LUV reported fourth-quarter FY22 operating revenue growth of 22.2% year-over-year to $6.17 billion, missing the consensus of $6.19 billion
  • Adjusted EPS loss of $(0.38) missed the consensus loss of $(0.09).
  • Operating revenue increased 7.7% compared to 4Q19.
  • Operating income loss was $(386) million.
  • CEO Bob Jordan stated, "Due to the operational disruptions in late December, which resulted in more than 16,700 flight cancellations, we incurred a fourth-quarter pre-tax negative impact of approximately $800 million (or approximately $620 million on an after-tax basis), which resulted in a fourth-quarter 2022 net loss."
  • Southwest Airlines' cash provided by operating activities year-to-date was $579 million. The company held $12.3 billion in cash and equivalents.
  • RASM increased 14.9%, driven primarily by a passenger yield increase of 10.6%, coupled with a load factor increase of 0.4 points compared to 4Q19.
  • Revenue passenger miles decreased 4.1% Y/Y, Available seat miles were down 6.3% Y/Y, and load factor was 83.5% compared to 83.1% in 4Q19.
  • The fuel efficiency improved by 2.0% compared with 4Q19 due to more Boeing Co BA 737-8 aircraft.
  • Outlook Southwest Airlines expected 1Q operating revenue growth of 20% - 24% versus the consensus of $5.88 billion.
  • Price Action: LUV shares are trading lower by 3.01% at $35.75 during the premarket session on last check Thursday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversAirlinesBriefsIndustrialswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!