Southwest Airlines (NYSE:LUV) earnings for the travel company’s second quarter of 2020 have LUV stock dwindling on Thursday. That’s due to it reporting adjusted losses per share of $2.67, which is worse than Wall Street’s estimate for a loss of $2.66. Even so, its revenue of $1.01 billion is better than analysts’ estimates of $845.26 million.
Let’s take a deeper dive into the most recent Southwest Airlines earnings report below.
- Adjusted per-share losses are a massive decline from adjusted EPS of $1.37 in the same period of the year prior.
- Revenue for the quarter comes in 82.9% lower than the $5.91 billion reported in Q2 2019.
- Operating loss of $1.13 billion is a major drop year-over-year from an operating income of $968 million.
- The Southwest Airlines earnings report also includes a net loss of $915 million.
- That doesn’t look good compared to the company’s net income of $741 million from the same time last year.
Gary Kelly, chairman and CEO of Southwest Airlines, said the following about the earnings.
“As our Nation continues to battle the COVID-19 pandemic, demand for air travel remains weak, which was the driver of our second quarter net loss of approximately $1.5 billion, excluding special items. We were encouraged by improvements in May and June leisure passenger traffic trends, compared with March and April; however, the improving trends in revenue and bookings have recently stalled in July with the rise in COVID-19 cases.”
Southwest Airlines doesn’t provide specific guidance for the rest of 2020. However, it does say it’s expecting year-over-year declines for revenue. This is due to the novel coronavirus hurting travel in the U.S.
LUV stock was down 1% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.