Southwest Airlines Investor Update

TL;DR

Southwest Airlines dropped an 8-K investor update today, expect operational and financial performance details.

AI Summary

Southwest Airlines Co. issued an 8-K filing on June 26, 2024, to provide an investor update. The filing details the company's operational and financial performance, including updates on capacity, revenue, and cost initiatives. Southwest is focusing on improving operational reliability and profitability.

Why It Matters

This filing provides investors with a snapshot of Southwest's current operational and financial standing, offering insights into the company's strategic direction and performance metrics.

Risk Assessment

Risk Level: medium — Airline industry is subject to significant external factors like fuel prices, economic conditions, and regulatory changes, which can impact performance.

Key Players & Entities

• Southwest Airlines Co. (company) — Registrant
• Texas (location) — State of incorporation
• Dallas (location) — Principal executive offices city
• June 26, 2024 (date) — Date of report

FAQ

Key Financial Figures

• $1.00 — ange on which registered Common Stock ($1.00 par value) LUV New York Stock Exchange
• $2.70 — Economic fuel costs per gallon 1 (c) $2.70 to $2.80 No change CASM-X (d), year-ov
• $2.80 — c fuel costs per gallon 1 (c) $2.70 to $2.80 No change CASM-X (d), year-over-year 2
• $9 — heduled debt repayments (millions) (e) ~$9 ~$7 Interest expense (millions) ~$63 ~
• $7 — led debt repayments (millions) (e) ~$9 ~$7 Interest expense (millions) ~$63 ~$62
• $63 — ) ~$9 ~$7 Interest expense (millions) ~$63 ~$62 (a) Operating revenue per availa
• $62 — ~$7 Interest expense (millions) ~$63 ~$62 (a) Operating revenue per available s
• $0.07 — xes and fuel hedging premium expense of $0.07 per gallon and favorable cash settlemen
• $0.04 — ments from fuel derivative contracts of $0.04 per gallon. (d) Operating expenses per

Filing Documents

• luv-20240626.htm (8-K) — 44KB
• luv-20240626_g1.jpg (GRAPHIC) — 155KB
• 0000092380-24-000098.txt ( ) — 551KB
• luv-20240626.xsd (EX-101.SCH) — 2KB
• luv-20240626_def.xml (EX-101.DEF) — 16KB
• luv-20240626_lab.xml (EX-101.LAB) — 27KB
• luv-20240626_pre.xml (EX-101.PRE) — 16KB
• luv-20240626_htm.xml (XML) — 3KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. Southwest Airlines Co. (the "Company") is providing updated guidance regarding selected financial trends. The following table presents updated selected financial guidance for second quarter 2024. These projections are based on current booking trends and the Company's current outlook, and actual results could differ materially. 2Q 2024 Estimation Previous estimation RASM (a), year-over-year Down 4.0% to 4.5% Down 1.5% to 3.5% ASMs (b), year-over-year Up 8% to 9% No change Economic fuel costs per gallon 1 (c) $2.70 to $2.80 No change CASM-X (d), year-over-year 2 Up 6.5% to 7.5% No change Scheduled debt repayments (millions) (e) ~$9 ~$7 Interest expense (millions) ~$63 ~$62 (a) Operating revenue per available seat mile ("RASM" or "unit revenues"). (b) Available seat miles ("ASMs" or "capacity"). The Company's flight schedule is currently published for sale through March 5, 2025. The Company continues to expect third quarter 2024 capacity to increase in the low-single digits; fourth quarter 2024 capacity to decrease in the low- to mid-single digits; and full year 2024 capacity to increase approximately 4 percent, all on a year-over-year percentage basis. (c) Based on the Company's existing fuel derivative contracts and market prices as of June 20, 2024. Includes fuel taxes and fuel hedging premium expense of $0.07 per gallon and favorable cash settlements from fuel derivative contracts of $0.04 per gallon. (d) Operating expenses per available seat mile, excluding fuel and oil expense, special items, and profitsharing ("CASM-X"). Guidance based on the revised second quarter 2023 CASM-X of 10.85 cents provided in the Company's third quarter 2023 10-Q filed on October 30, 2023. (e) The Company returned two aircraft leases earlier than originally planned, which shifted payments forward from the previous monthly payments scheduled later in the year. The Company's second quarter 2024 operational performance, thus far, co

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SOUTHWEST AIRLINES CO. June 26, 2024 By: /s/ Tammy Romo Tammy Romo Executive Vice President & Chief Financial Officer (Principal Financial and Accounting Officer)

View Full Filing

View this 8-K filing on SEC EDGAR