Shares of Southwest Airlines Co. (LUV) rose 1.0% in premarket trading Thursday, after the air carrier reported a narrower-than-expected third-quarter as revenue fell less than forecast. The company swung to a net loss of $1.16 billion, or $1.96 a share, from net income of $659 million, or $1.23 a share, in the year-ago period. Excluding non-recurring items, the adjusted loss per share was $1.99, compared with the FactSet loss consensus of $2.35. Revenue dropped 68.2% to $1.79 billion, above the FactSet consensus of $1.70 billion, as monthly declines lessened in each month of the quarter. Load factor fell to 44.9% from 83.5%, but beat the FactSet consensus of 43.4%, while passenger revenue per available seat mile (PRASM) declined 58.7% to $5.49 but topped expectations of $3.45. The company reduced its October revenue decline guidance range to 65% to 70% from 65% to 75% and raised its load factor outlook to 50% to 55% from 45% to 55%. The stock has dropped 26.2% year to date through Wednesday, while the U.S. Global Jets ETF (JETS) has tumbled 43.5% and the S&P 500 has gained 6.3%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 22, 2020 06:55 ET (10:55 GMT)
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