Why Southwest Airlines (LUV) Shares Are Trading Lower Today - Southwest Airlines (NYSE:LUV)

Southwest Airlines Co 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 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.