Southwest Airlines says Q2 profit rose more than 9% as fares offset fuel costs

The carrier reported second-quarter EPS of $0.94 versus estimates of $0.51, while $8.43 billion in revenue missed the expected $8.58 billion and third-quarter adjusted earnings guidance trailed forecasts.

Summary

Southwest Airlines reported second-quarter profit rose more than 9% from a year earlier as higher fares helped offset a nearly $900 million increase in its fuel bill. The airline posted EPS of $0.94, topping analyst estimates of $0.51, but revenue of $8.43 billion missed expectations of $8.58 billion. For the third quarter, Southwest forecast adjusted earnings of 50 cents to 75 cents, below the 82 cents analysts expected, according to LSEG consensus estimates.

Terms & Concepts
  • EPS: Earnings per share, a company’s profit allocated to each outstanding share.
  • adjusted earnings: Profit measure excluding certain items.
  • consensus estimates: Average forecasts compiled from analysts.