What's Going On With Southwest Airlines Stock?

Southwest Airlines Co LUV shares are trading higher Thursday. The company announced this week that it reached a tentative agreement with the Southwest Airlines Pilots Association (SWAPA).

What To Know: Southwest has reached a tentative agreement with SWAPA that will be voted on by nearly 11,000 Southwest pilots. 

The agreement won't impact the company's fourth-quarter guidance. Southwest said its forecast for operating expenses per available seat mile, excluding fuel and oil expense, profit sharing and special items, including those associated with the tentative agreement, remains unchanged at down 16% to 19% on a year-over-year basis.

Southwest also noted that the CASM-X guidance range is inclusive of market wage rate accruals for all open labor contracts related to the fourth quarter.

"Our Pilots are exemplary aviators, and this agreement would give them industry-leading pay rates, and numerous quality-of-life enhancements, while also providing opportunities for operational efficiencies," said Adam Carlisle, vice president of labor relations at Southwest.

"I thank both negotiating committees and the National Mediation Board for their hard work to achieve this milestone, and I am glad our Pilots will get to vote on this agreement soon."

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LUV Price Action: Southwest shares were up 2.56% at $29.81 at the time of publication, according to Benzinga Pro.

Photo: Tomás Del Coro from Flickr.