Why Southwest Airlines Shares Are Taking Off Today

Southwest Airlines Co LUV shares are trading higher Thursday after the company reported better-than-expected earnings results and issued guidance.

Southwest Airlines reported third-quarter revenue of $6.2 billion, which missed average analyst estimates of $6.23 billion, according to Benzinga Pro. The company said its top-line results were up 10.3% compared to the third quarter of 2019.

Southwest reported quarterly earnings of 50 cents per share, which beat average analyst estimates of 44 cents per share.

"Following record summer leisure travel demand, revenue trends remained strong in September 2022, bolstered by improving business travel trends post-Labor Day. Leisure and business demand remains strong, and we currently expect revenue trends to improve sequentially from third quarter to fourth quarter 2022, despite lower capacity," said Bob Jordan, CEO of Southwest Airlines.

"We remain focused on maintaining our current momentum and expect to generate strong profits and margins in fourth quarter 2022, based on current trends and barring any significant unforeseen events," Jordan said.

Southwest expects fourth-quarter operating revenue to be up 13% to 17% compared to the fourth quarter of 2019. 

Related Link: Southwest Airlines: Q3 Earnings Insights

LUV Price Action: Southwest has a 52-week high of $50.10 and a 52-week low of $30.20.

The stock was up 3.03% at $35.41 Thursday morning.

Photo: Owen Lystrup from Unsplash.