Southwest Airlines (NYSE:LUV) stock is falling on Thursday following the release of its latest earnings report.
The big news hitting LUV stock today is an $800 million hit to its net income during the fourth quarter of 2022. This resulted in the company reporting a net loss of $220 million during the period.
According to Southwest, that massive loss was connected to a December computer outage that caused “more than 16,700 flight cancellations.” Despite this, the company notes that net income for the full year of 2022 came in at $723 million.
Bob Jordan, President and CEO of Southwest Airlines, said the following in the earnings report:
“We have swiftly taken steps to bolster our operational resilience and are undergoing a detailed review of the December events. In addition, our Board of Directors has established an Operations Review Committee that is working with the Company’s Management to help oversee the Company’s response. As part of our efforts, we are also conducting a third-party review of the December events and are reexamining the priority of technology and other investments planned in 2023.”
More Q4 Data From LUV
To go along with those results, adjusted earnings per share (EPS) and revenue came in at -38 cents and $6.17 billion for the company. Those are mixed results next to Wall Street’s estimates of – 12 cents per share and $6.2 billion.
LUV stock is down 4.7% as of Thursday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
