Southwest Airlines (LUV) Tops Q4 EPS by 5c; Sees Q1 RASM Flat to Down 1%

Southwest Airlines (NYSE: LUV) reported Q4 EPS of $0.75, $0.05 better than the analyst estimate of $0.70. Revenue for the quarter came in at $5.1 billion versus the consensus estimate of $5.03 billion.

The Company's fourth quarter 2016 total operating revenues were a record $5.1 billion, driven largely by record fourth quarter passenger revenues of $4.6 billion. As compared with fourth quarter 2015, total operating revenues increased 2.0 percent on a 5.0 percent increase in available seat miles, resulting in a 2.9 percent decline in operating unit revenues (RASM). Strong demand for low fares resulted in a fourth quarter record 84.4 percent load factor, and a 3.8 percent year-over-year decline in fourth quarter passenger revenue yield. Based on revenue and booking trends thus far in January, the Company expects its first quarter 2017 RASM to be flat to down one percent, as compared with first quarter 2016.

Annual 2016 total operating revenues increased 3.1 percent, year-over-year, to a record $20.4 billion. Annual operating revenues for 2015 included a one-time special revenue adjustment of $172 million recorded as a result of the July 2015 amendment of the Company\'s co-branded credit card agreement with Chase Bank USA, N.A. and a resulting required change in accounting methodology. Excluding this special item, annual 2016 total operating revenues increased 4.0 percent, year-over-year.

For earnings history and earnings-related data on Southwest Airlines (LUV) click here.

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