Southwest CFO: Q3 Profit Goal Within Reach Despite Fuel Spike
LUV sits 34% above its 52-week low of $29.26.
Summary
CFO Tom Doxey told the Morgan Stanley Laguna Conference that revenues have exceeded expectations and the airline can still hit its Q3 EPS guidance of $0.50-$0.75 despite higher fuel costs. He warned that capacity cuts may be needed if fuel prices stay elevated. Q2 fuel expense rose about $889M year-over-year, but the average price of $3.92 per gallon came in below the prior estimate of $4.10-$4.15. The company also lowered its 2026 capacity growth forecast to ~1.5% from 2%. This follows the Q2 earnings report and guidance issued in July, adding management's current assessment of demand and cost trends.
At the time of this announcement, LUV was trading at $39.29 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $19.2B. The 52-week trading range was $29.26 to $55.11. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.