Southwest Airlines Co (LUV) Meets Q2 Earnings, Misses Revenues - Tale of the Tape
Southwest Airlines Co. (LUV) is a low-cost passenger carrier that provides scheduled air transportation in the United States. The carrier also plans to expand its international operations to 50 international destinations. Recently, it completed the acquisition of AirTran Holdings, which now operates as a wholly owned subsidiary under the name AirTran Airways.
Lower fuel prices, continuous expansion of routes and wining of slots at the Reagan and LaGuardia airports will certainly boost its capacity and network presence. Meanwhile, integration of AirTran will boost Southwest Airlines’ operational and financial performance.
Currently, Southwest Airlines has a Zacks Rank #5 (Strong Sell), but that could definitely change following Southwest Airlines’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Southwest Airlines earnings inline. Our consensus earnings estimate called for EPS of $1.03 per share, and the company reported inline earnings. Investors should note that these figures take out stock option expenses.
Revenue: Southwest Airlines reported revenues of $5,111 million. This missed our consensus estimate of $5,170 million.
Key Stats to Note: In the reported quarter, Passenger revenue per available seat mile (PRASM) fell 4.6% year over year. Moreover, the carrier expects PRASM for third quarter 2015 to drop 1% as compared with third quarter last year.
Check back later for our full write up on this Southwest Airlines earnings report later!
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