Southwest (LUV) Reports Q4 Earnings: What Key Metrics Have to Say

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For the quarter ended December 2024, Southwest Airlines (LUV) reported revenue of $6.93 billion, up 1.6% over the same period last year. EPS came in at $0.56, compared to $0.37 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $6.95 billion, representing a surprise of -0.23%. The company delivered an EPS surprise of +24.44%, with the consensus EPS estimate being $0.45.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Southwest performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Load factor: 79.2% versus the five-analyst average estimate of 81.8%.

  • Revenue passenger miles (RPMs): 34.47 billion versus the four-analyst average estimate of 35.71 billion.

  • Available seat miles (ASMs): 43.53 billion versus the four-analyst average estimate of 43.7 billion.

  • Passenger revenue per ASM (PRASM): 14.49 cents compared to the 14.45 cents average estimate based on four analysts.

  • CASM, excluding Fuel and oil expense, special items, and profitsharing expense: 12.19 cents versus the four-analyst average estimate of 12.23 cents.

  • Revenue Per Available Seat Mile (RASM): 15.92 cents compared to the 15.9 cents average estimate based on four analysts.

  • Fuel costs per gallon, including fuel tax: 2.38 $/gal versus the three-analyst average estimate of 2.58 $/gal.

  • Fuel consumed: 531 Mgal versus 534.92 Mgal estimated by three analysts on average.

  • CASM, excluding Fuel and oil expense and special items: 12.31 cents versus the three-analyst average estimate of 12.25 cents.

  • Operating Revenues- Passenger [$M]: $6.31 billion versus the six-analyst average estimate of $6.30 billion. The reported number represents a year-over-year change of +1.6%.

  • Operating Revenues- Other: $579 million versus the six-analyst average estimate of $589.87 million. The reported number represents a year-over-year change of +2.1%.

  • Operating Revenues- Freight [$M]: $45 million versus the six-analyst average estimate of $48.40 million. The reported number represents a year-over-year change of +2.3%.

View all Key Company Metrics for Southwest here>>>

Shares of Southwest have returned -5.9% over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.