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Jan. 27, 2022, 7:01 a.m. EST

Southwest swings to first adjusted profit in two years and beats expectations, stock gains

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By Tomi Kilgore

Shares of Southwest Airlines Co. /zigman2/quotes/201071949/composite LUV -2.11% rose 0.7% in premarket trading Thursday, after the air carrier swung to the first adjusted quarterly profit in two years that topped forecasts, amid strong leisure travel demand. Net income was $68 million, or 11 cents a share, after a loss of $908 million, or $1.54 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 14 cents, compared with last year's loss of $1.29 and above the FactSet consensus of $7 cents. Revenue jumped 150.9% to $5.05 billion, beating the FactSet consensus of $4.97 billion. Load factor rose to 81.0% from 53.8%, as traffic increased 136.0% while capacity grew 54.4%, but came up shy of the FactSet consensus of 82.0%. Economic fuel costs rose 80% to $2.25 per gallon, and is expected to be $2.25 to $2.35 per gallon in the first quarter. "While we made significant progress in 2021, the Omicron variant has delayed the demand improvement we were previously expecting in early 2022," said Incoming Chief Executive Bob Jordan. "With COVID-19 cases trending downward, the worst appears to be behind us, and we are optimistic about current bookings and revenue trends for March 2022." The stock has dropped 6.1% over the past three months through Wednesday, while the U.S. Global Jets ETF /zigman2/quotes/207744796/composite JETS -1.38% has lost 6.8% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.01% has declined 4.4%.

/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 42.65
-0.92 -2.11%
Volume: 4.52M
May 20, 2022 4:00p
P/E Ratio
45.19
Dividend Yield
0.00%
Market Cap
$25.29 billion
Rev. per Employee
$334,519
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/zigman2/quotes/207744796/composite
US : U.S.: NYSE Arca
$ 19.25
-0.27 -1.38%
Volume: 6.11M
May 20, 2022 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,901.36
+0.57 +0.01%
Volume: 3.00B
May 20, 2022 5:03p
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