Southwest Airlines Reports Strong Q2 Earnings but Issues Weaker Outlook
Southwest Airlines (LUV) reported record operating revenue of $8.43 billion for its second quarter, a year-over-year increase of 16.4%. Adjusted earnings per share came in at $0.94, surpassing expectations and driven by strong unit revenue growth despite rising fuel costs. However, the stock fell 2.1% following the report due to management's weaker-than-expected guidance for Q3 adjusted EPS of $0.50–$0.75 versus an estimated $0.82. The company also revised its full-year earnings forecast downward amid concerns over high fuel prices impacting profitability. Analysts remain cautiously optimistic, with a consensus rating of 'Moderate Buy' and a mean price target suggesting up to 20.5% upside from current levels.
Tickers: $LUV
Topics: LUV stock performance Q2 earnings report Southwest Airlines