{"id":77150,"date":"2023-10-26T14:20:41","date_gmt":"2023-10-26T18:20:41","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/southwest-airlines-spirit-stocks-fall-after-earnings\/"},"modified":"2023-10-26T14:20:44","modified_gmt":"2023-10-26T18:20:44","slug":"southwest-airlines-spirit-stocks-fall-after-earnings","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=77150","title":{"rendered":"Southwest Airlines, Spirit Stocks Fall After Earnings"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000778406\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<p>        <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>Low-cost airline stocks have been hit by turbulence for months. Earnings from<br \/>\n        Southwest Airlines<br \/>\n       and<br \/>\n        Spirit Airlines<br \/>\n       are making things even worse. <\/p>\n<p>\n        Southwest Airlines<br \/>\n      \u2018 (ticker: LUV) earnings weren\u2019t terrible but the stock was down early Thursday.<\/p>\n<div class=\"paywall\">\n<p>The carrier may have reported record third-quarter revenue of $6.5 billion, but that was below analysts\u2019 estimates. Adjusted earnings per share of 38 cents were in line with analysts\u2019 expectations.<\/p>\n<p>Demand remains solid, the company said, and it even expects record fourth-quarter revenue and record passenger numbers. But that\u2019s pretty much where the good news ends.<\/p>\n<p>Southwest said that leisure trends, so strong over the summer, \u201cappear to be returning to historically seasonal norms\u201d in the fourth quarter. Revenue per available seat mile, or unit revenue, is expected to fall between 9% and 11% in the current quarter from last year. That\u2019s a sharper fall than the 6.8% drop in the third-quarter.<\/p>\n<p>Cost pressures are mounting for all airlines, particularly for low-cost carriers whose business models mean they can\u2019t hike air fares in response.<\/p>\n<p>Southwest said fuel costs per gallon are set to rise, to a range of $2.90 to $3 in the fourth quarter, up from $2.78 in the third quarter.<\/p>\n<p>One area discount airlines can counter rising costs is by filling up their planes. But Southwest\u2019s load factor\u2013the percentage of seats it was able to sell on flights\u2013fell to 80.7% in the third quarter, from 85.4% the previous year.<\/p>\n<p>The stock was 0.5% lower Thursday, paring earlier heavier losses.<\/p>\n<p>Coming into earnings, the shares have fallen 38% since their July peak, and are 28% down in 2023.<\/p>\n<p>Spirit (SAVE) stock was also pointing lower early Thursday after its third-quarter earnings. The discounter had a tough quarter, booking an adjusted loss of $1.37 per share, albeit a narrower-than-expected loss. The airline said softer demand and discounted fares in its markets led to a \u201cdisappointing outcome.\u201d<\/p>\n<p>Its load factor was also lower, dropping to 81.4% from 83.3% in the third quarter of 2022. <\/p>\n<p>Again, it\u2019s Spirit\u2019s guidance and commentary around the fourth quarter that\u2019s likely to concern investors. Spirit said it has \u201cnot seen the anticipated return to a normal demand and pricing environment\u201d for the peak holiday period. <\/p>\n<p>Revenue guidance of between $1.28 billion and $1.32 billion comes in below the analysts\u2019 consensus of $1.39 billion. It also sees a higher fuel cost per gallon\u2013$3.15\u2013in the current quarter.<\/p>\n<p>Spirit stock fell 3.8% in early trading.<\/p>\n<p>The summer peak travel season is now a distant memory and investors are looking nervously to the coming quarters.<\/p>\n<p>For low-cost names, there\u2019s really not much to be optimistic about.<\/p>\n<p>Write to Callum Keown at callum.keown@barrons.com<\/p>\n<p>\u00a0<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/southwest-airlines-spirit-stock-price-earnings-be837dd4?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Low-cost airline stocks have been hit by turbulence for months. Earnings from Southwest Airlines and Spirit Airlines are making things even worse. Southwest Airlines \u2018 (ticker: LUV) earnings weren\u2019t terrible but the stock was down early Thursday. The carrier may have reported record third-quarter revenue of $6.5 billion, but that was below analysts\u2019 estimates. Adjusted [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":77151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-77150","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Southwest Airlines, Spirit Stocks Fall After Earnings | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Low-cost airline stocks have been hit by turbulence for months. 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