Southwest Airlines Co. LUV is soaring to new heights following an impressive earnings beat and a fresh alliance with activist investor Elliott Investment Management.

In its recent earnings report, the airline posted a 5.3% increase in total operating revenue, hitting $6.87 billion — outpacing expectations of $6.81 billion.

Earnings Impress Despite Challenges

Despite turbulence from the COVID-19 pandemic and ongoing delivery delays from Boeing, the airline showed resilience with an adjusted net income of $89 million.

CEO Bob Jordan is laser-focused on executing strategies that promise to return Southwest to its profit-generating glory days.

Read Also: Southwest Airlines Beats Q3 Street Expectations, Secures Agreement With Elliott Management-Driven Board Overhaul

LUV Chart Signals Continued Bullish Momentum

What's more? The charts are looking very bullish!

Chart created using Benzinga Pro

LUV stock made a Golden Cross, with its price at $31.09 comfortably above critical moving averages: the 50-day at $29.32, the 20-day at $30.46, and the eight-day at $30.65.

This upward trend signifies strong buying pressure, suggesting investors are piling in with optimism. With holiday travel demand heating up, Southwest is projecting unit revenues to rise between 3.5% and 5.5% in the fourth quarter, despite some hiccups from Hurricane Milton’s flight cancellations.

A New Strategic Direction

And with six new board members joining the team — including industry heavyweights from Chevron and Virgin America — Southwest is reshaping its strategy to better compete in the crowded skies.

As LUV takes off, the combination of a solid earnings report, bullish technical signals, and an invigorated management team positions the airline for a potential turnaround.

Investors are buzzing, eager to see if this newfound momentum can carry Southwest to higher altitudes as the bustling holiday season approaches.

Read Next:

• Southwest Shares Drop Despite Strong Earnings, Elliott Deal: CEO Warns Of Boeing Delivery Delays If Strike Continues

Courtesy: Southwest Airlines