Southwest Airlines (LUV) reported a loss for the fourth quarter, as the company took an $800 million pretax hit to earnings due to the computer system failure that led to the airline’s holiday travel meltdown.
For the quarter, Southwest reported:
Revenue: $6.17 billion vs $6.12 billion (est.)
Adjusted earnings per share (EPS) loss: $0.38 vs. $0.07 (est.)
"Due to the operational disruptions in late December, which resulted in more than 16,700 flight cancellations, we incurred a fourth quarter pre-tax negative impact of approximately $800 million (or approximately $620 million on an after-tax basis), which resulted in a fourth quarter 2022 net loss,” Southwest CEO Bob Jordan said in a statement.
Overall for the quarter, Southwest lost $220 million resulting in an adjusted EPS loss of $0.38. Southwest had to cancel around 16,700 flights between December 21 through December 31, nearly all the flights scheduled for that time period. The U.S. Transportation Department said on Wednesday it was investigating Southwest over claims it had deceived customers by scheduling more flights that it could handle.
Southwest says it has offered 25,000 Rapid Rewards points to the approximately 2 million travelers who had booked flights on Southwest during the holiday period disruption.
On the positive front, Southwest reported record quarterly revenue that jumped nearly 8% compared to 2019. However, revenue took a $410 million hit due to those flight cancellations in Q4.
Looking ahead to Q1 2023, Southwest CEO Bob Jordan said the airline is expecting another quarterly loss, though the company is encouraged by current booking trends for March 2023.
“We remain intent on achieving the long-term financial goals outlined at our December 2022 Investor Day. We also intend to regain our 51-year reputation for operational excellence,” Jordan said.
Southwest shares are trading lower today in the pre-market.
—
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
Energy inflation remains a serious concern. Protect your portfolio.
Lucid (LCID) shares soared as much as 88% on Friday and were repeatedly halted for volatility following speculation that Saudi Arabia's Public Investment Fund is considering buying a remaining stake in the luxury electric vehicle startup.
Apple earnings and the Fed meeting loom, but don't sit out a possible "life-changing" market rally. Tesla rival BYD is an aggressive buy.
Energy Transfer (NYSE: ET) is giving its investors another raise. The master limited partnership (MLP) recently declared its latest distribution, a 15% increase from the prior payment level. Energy Transfer's new payment level is $0.305 per unit each quarter ($1.22 a year).
In today’s digital world, there will always be a need for cybersecurity. Too many of our essential systems, everything from the upper levels of government and finance to the automation systems that run the traffic lights, depend on online connections for us to ignore the basics of securing our computer networks. Recent events, including the ongoing questions about election integrity, deep macroeconomic volatility, and the Russian war in Ukraine, have simply underscored the importance of cybersec
Nio (NYSE: NIO), a stock that rode the electric vehicle (EV) hype in 2021, turned out to be among the biggest losers in 2022 — it plunged 69% last year. At current prices, Nio could be a rare opportunity to buy a growth stock in a fast-growing industry. Here are the three biggest reasons why Nio stock is a solid buy right now for 2023.
Let's see if some analysis can provide the answer to whether or not investors should consider SoFi stock right now. Today, while student financing remains a major part of its business, it offers a broad array of services, such as personal banking, investing, credit cards, and mortgages.
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been a money machine for his shareholders since taking the reins in 1965. Through this past weekend, he's presided over a nearly 3,800,000% increase in the value of Berkshire's Class A shares (BRK.A).
Her flagship Ark Innovation ETF has lost 41% over the past year and 76% from its February 2021 peak.
Asia's richest man is rocked by a U.S. short-seller's allegations of fraud and money laundering.
It was a busy week for dividend announcements, with the fourth-quarter earnings season in full swing.
AT&T (NYSE: T) reported earnings this week, and while there was steady growth, a high dividend yield, and strong cash flow, the company continues to pay the price for previous investments. Travis Hoium, Jason Hall, and Jon Quast discuss the company's operations and why they're hesitant to buy the stock.
Two-year U.S. Treasury notes were yielding 4.22% early Friday, while 10-year Treasury notes were yielding 3.56%. A lower long-term interest rate means investors expect to profit when a slowing economy causes the Federal Reserve to change its policy and push interest rates down. Bond prices move in the opposite direction and long-term prices are more sensitive.
In the latest trading session, Geron (GERN) closed at $3.34, marking a -0.89% move from the previous day.
You could say he cleaned up.
Economic headwinds sent the S&P 500 into a bear market last year, and the benchmark index is still 16% off its high. Warren Buffett's Berkshire Hathaway treated the drawdown as a buying opportunity, investing $66 billion into the stock market through the first three quarters of 2022. Smart investors like Buffett know that a bear market offers investors a chance to buy good stocks at great prices.
The battle of the bills turns personal.
Plug Power (NASDAQ: PLUG) disappointed investors with its latest business update, and its shares were punished yesterday. As of 3:45 p.m. ET Friday, shares of the hydrogen production and fuel cell company were higher by 3.4%. Responses to the update shared by Barron's today included Evercore ISI analyst James West writing that it was "full steam ahead in 2023" for Plug Power.
The energy industry is a passive income lover's dream these days. For example, a $10,000 investment spread across monster dividend payers like Crestwood Equity Partners (NYSE: CEQP), MPLX (NYSE: MPLX), and Pioneer Natural Resources (NYSE: PXD) could produce $2,000 of passive income in less than three years.
The stock market is off to a decent start in 2023, with the S&P 500 up by about 4% with about a week left in January — not a stellar performance but a welcome change from last year. Block (NYSE: SQ), formerly known as Square, dramatically underperformed the market in 2022, for a few reasons. There are also credit risk fears surrounding the (expensive) Afterpay acquisition, as well as the cooling off in Bitcoin prices, both significant revenue drivers for Cash App.
