Financial Performance - Fourth quarter 2024 net income was $261 million, or $0.42 per diluted share, while full year net income was $465 million, or $0.76 per diluted share[2]. - Record fourth quarter operating revenues reached $6.9 billion, a 1.6% increase year-over-year, and full year operating revenues totaled $27.5 billion[10]. - Operating income for Q4 2024 was $278 million, a significant recovery from a loss of $404 million in Q4 2023[40]. - Net income for the year ended December 31, 2024, was $465 million, unchanged from the previous year[40]. - Basic net income per share for Q4 2024 was $0.44, compared to a loss of $0.42 per share in Q4 2023[40]. - The company reported a significant increase in operating income, excluding special items, to $397 million in Q4 2024, up 118.1% from $182 million in Q4 2023[41]. - The company reported a net income, excluding special items, of $356 million for the three months ended December 31, 2024, representing a 50.2% increase from $237 million in the same period of 2023[42]. - Total income before income taxes, excluding special items, was $455 million for the three months ended December 31, 2024, a 47.2% increase from $309 million in the prior year[42]. Revenue and Expenses - Total operating revenues for Q4 2024 reached $6,931 million, a 1.6% increase from $6,822 million in Q4 2023[40]. - Passenger revenue increased by 1.5% to $6,307 million in Q4 2024, compared to $6,211 million in Q4 2023[40]. - Total operating expenses decreased by 7.9% to $6,653 million in Q4 2024, down from $7,226 million in Q4 2023[40]. - Operating revenues, excluding special items, increased by 3.3% to $7,047 million in Q4 2024[41]. - Operating expenses, excluding fuel and oil expense and special items, rose by 6.3% to $5,307 million in Q4 2024[41]. - Fuel and oil expense, as reported, decreased by 25.8% to $1,264 million in Q4 2024, compared to $1,703 million in Q4 2023[40]. - Operating expenses per ASM, excluding fuel and oil expenses, increased to 12.19 cents for the three months ended December 31, 2024, an 11.1% increase from 10.97 cents in the previous year[43]. Shareholder Returns - The company returned $680 million to shareholders in 2024 through dividends and share repurchases[2]. - The Company returned $680 million to its shareholders in 2024, which included $430 million in dividends and $250 million in share repurchases[29]. - The Company plans to launch an additional $750 million accelerated share repurchase program in the first quarter of 2025[29]. Capital Expenditures and Debt - Full year 2024 capital expenditures were $2.1 billion, with 2025 capital spending estimated between $2.5 billion and $3.0 billion[22]. - The Company paid $1.3 billion during 2024 to retire debt and finance lease obligations, including the early redemption of its $1.3 billion outstanding 5.25% Notes due 2025[29]. - Total debt, including finance leases, decreased to $6,699 million as of December 31, 2024, from $8,007 million in 2023[65]. - Adjusted debt as of December 31, 2024, was $7,801 million, down from $8,957 million in 2023[65]. - Leverage ratio (adjusted debt to invested capital) improved to 43% in 2024 from 46% in 2023[65]. Operational Metrics - Fourth quarter revenues per available seat mile (RASM), excluding special items, increased by 8.0% year-over-year[10]. - For Q1 2025, RASM is expected to increase by 5% to 7% year-over-year, while available seat miles (ASMs) are projected to decrease by 2% to 3%[4]. - The company anticipates a 7% to 9% increase in CASM-X year-over-year for Q1 2025, driven by inflationary pressures and capacity moderation efforts[18]. - Revenue passengers carried decreased by 5.2% to 34,126,000 in Q4 2024 compared to Q4 2023[48]. - Average passenger fare increased by 7.1% to $184.81 in Q4 2024 compared to $172.60 in Q4 2023[48]. - Load factor improved by 1.0 percentage points to 79.2% in Q4 2024 compared to 78.2% in Q4 2023[48]. - Available seat miles decreased by 4.4% to 43,533 million in Q4 2024 compared to Q4 2023[48]. - Fuel consumed decreased by 6.0% to 531 million gallons in Q4 2024 compared to Q4 2023[48]. Cash Position - The Company ended 2024 with $8.7 billion in cash and cash equivalents and short-term investments, along with a fully available revolving credit line of $1.0 billion[29]. - Cash and cash equivalents at the end of the period were $7,509 million, down from $9,288 million at the end of 2023[56]. - The company reported a gain on sale-leaseback transactions of $871 million for the year ended December 31, 2024[56]. - The company incurred a loss on extinguishment of debt amounting to $2 million for the year ended December 31, 2024[56]. Future Outlook - The company is currently 51% hedged for fuel consumption in Q1 2025, with a maximum hedged percentage of 47% for the full year 2025[14]. - The Company has 63 remaining contractual but undelivered aircraft for 2024, consisting of 27 -7s and 36 -8s, and anticipates 73 contractual deliveries in 2025[25]. - The Company is currently using a planning assumption of 38 -8 aircraft deliveries in 2025[25]. - The Company has a total of 694 firm orders and options in its previous 737 order book as of October 24, 2024[26]. - The company aims to exceed its 2027 cost reduction target of $500 million, supporting a 2025 CASM-X exit rate in the low-single digits[1]. Recognition and Awards - The company was recognized as the 1 Airline for Economy Class Customer Satisfaction in the J.D. Power 2024 North America Airline Satisfaction Study for the third consecutive year[29].

Core Viewpoint - Southwest Airlines Co. (LUV) is expected to report its fourth-quarter 2024 results on January 30, with positive earnings estimates and growth indicators despite facing some operational challenges [1]. Financial Performance - The Zacks Consensus Estimate for LUV's fourth-quarter 2024 earnings has been revised upward by 21.6% to 45 cents per share, indicating a 21.62% growth from the previous year [2]. - LUV has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average earnings beat of 111.62% [3]. Revenue Insights - The revenue estimate for LUV's fourth-quarter 2024 is set at $6.95 billion, reflecting a year-over-year growth of 1.84%, supported by strong leisure demand and yield strength [4]. - LUV anticipates its revenue per available seat mile (RASM) to increase by 5.5%-7% year-over-year, an improvement from the previous forecast of 3.5%-5.5% [5]. Operational Factors - The growth in unit revenues is attributed to consistent travel demand and effective revenue management strategies, including network optimization and capacity rationalization [6]. - However, production delays at Boeing, increased labor and airport costs, and higher fuel expenses are expected to impact LUV's bottom line, with CASM (excluding fuel and other costs) projected to rise by 11-13% compared to the previous year [7]. Fuel Cost Projections - The expected economic fuel cost per gallon for the fourth quarter is now between $2.35 and $2.45, up from the prior estimate of $2.25 to $2.35, which poses a challenge for profitability [8]. Earnings Prediction - The model predicts an earnings beat for Southwest Airlines, supported by a positive Earnings ESP of +6.78% and a Zacks Rank of 2 (Buy) [9].

Core Viewpoint - Southwest Airlines (LUV) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Recent Performance of Southwest Airlines - For the fiscal year ending December 2024, Southwest is expected to earn $0.84 per share, reflecting a decrease of 46.5% from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Southwest has increased by 4.2%, indicating a positive trend in earnings estimates [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of Southwest to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].

Core Points - Southwest Airlines Co. will host a live webcast to discuss its fourth quarter and full year 2024 financial results [1] - The webcast is scheduled for January 30, 2025, at 12:30 PM Eastern Time [1] - Key executives participating in the call include Bob Jordan (President and CEO), Andrew Watterson (COO), Ryan Green (Chief Transformation Officer), and Tammy Romo (CFO) [1] Access Information - The webcast can be accessed through the company's investor relations website or the main Southwest Airlines website [1] - Registration for the event will begin 20 minutes prior to the start of the call [1]

Core Viewpoint - Rosen Law Firm is investigating potential breaches of fiduciary duties by the directors and officers of Southwest Airlines Co. related to the company's information technology infrastructure, which may impact its business operations and stock price [1]. Group 1 - The investigation focuses on the impact of Southwest Airlines' information technology infrastructure on its business and stock performance [1]. - The law firm is reaching out to current shareholders of Southwest Airlines for further information and potential involvement in the investigation [2]. - Rosen Law Firm has a strong track record in representing investors, having achieved significant settlements in securities class actions and shareholder derivative litigation [3].

Group 1 - The Schall Law Firm is inviting shareholders who have incurred losses to participate in an inquiry regarding potential securities law violations by Southwest Airlines [1] - The inquiry is focused on whether Southwest Airlines misled investors about its operational performance and financial health [1] - The law firm is seeking to determine if there were any violations that could have impacted shareholder value [1]

DALLAS, Jan. 17, 2025 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) today announced another milestone in its commitment to Safety and transformational journey with the successful completion of the IATA Operational Safety Audit (IOSA). IOSA is a flagship program of the International Air Transport Association."Along with our robust Safety Management System and Safety Culture we already have in place, successfully completing IOSA reinforces our commitment to Safety and makes us accountable to the high sta ...

Southwest Airlines Co. Is Being Investigated For Securities Fraud And Impacted Investors Are Urged To Contact The Schall Law Firm ...

Southwest Airlines (LUV) is lower in premarket trading, after Citi downgraded the stock to "sell" from "neutral," and cut its price target to $29.50 from $31.50. The analyst in coverage cited valuation concerns and weakening earnings quality, while citing the budget airline's deteriorating free cash flow and shrinking pre-tax margins as making Southwest less competitive to sector peers like Delta Air lines (DAL) and United Airlines (UAL).LUV, like most of Wall Street, has yet to get off the ground in 2025. ...

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