Southwest Airlines Saw Q4 Earnings Hit Due To December Flight Disruptions, Books $800M Charge
- Southwest Airlines Co (NYSE: 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 (NYSE: 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.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: Briefs why it's movingEarnings News Guidance Movers Best of Benzinga
