Southwest Airlines-Southwest (LUV) Reports Q4 Earnings: What Key Metrics Have to Say

Financial Performance - For the quarter ended December 2024, Southwest Airlines reported revenue of $6.93 billion, an increase of 1.6% year-over-year [1] - EPS for the quarter was$ 0.56, compared to $0.37 in the same quarter last year, representing a significant increase [1] - The reported revenue was slightly below the Zacks Consensus Estimate of$ 6.95 billion, resulting in a surprise of -0.23% [1] - The company delivered an EPS surprise of +24.44%, with the consensus EPS estimate being $0.45 [1] Key Metrics - Load factor was 79.2%, below the five-analyst average estimate of 81.8% [4] - Revenue passenger miles (RPMs) totaled 34.47 billion, compared to the four-analyst average estimate of 35.71 billion [4] - Available seat miles (ASMs) were reported at 43.53 billion, slightly below the four-analyst average estimate of 43.7 billion [4] - Passenger revenue per ASM (PRASM) was 14.49 cents, slightly above the average estimate of 14.45 cents [4] - CASM, excluding fuel and oil expenses, special items, and profit-sharing expenses, was 12.19 cents, compared to the four-analyst average estimate of 12.23 cents [4] - Revenue Per Available Seat Mile (RASM) was 15.92 cents, in line with the four-analyst average estimate of 15.9 cents [4] - Fuel costs per gallon were$ 2.38, below the three-analyst average estimate of $2.58 [4] - Fuel consumed was 531 million gallons, compared to the estimated 534.92 million gallons [4] - Operating Revenues from Passenger services were$ 6.31 billion, slightly above the six-analyst average estimate of $6.30 billion, reflecting a year-over-year change of +1.6% [4] - Operating Revenues from Other sources were$ 579 million, below the six-analyst average estimate of $589.87 million, with a year-over-year change of +2.1% [4] - Operating Revenues from Freight were$ 45 million, below the six-analyst average estimate of $48.40 million, with a year-over-year change of +2.3% [4] Stock Performance - Shares of Southwest Airlines have returned -5.9% over the past month, while the Zacks S&P 500 composite has changed by +1.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]