Southwest
Southwest Airlines reported $0.55 in earnings per share and $4.8 billion in revenue for the most recent quarter, against Thomson Reuters consensus earnings estimates of $0.53 in earnings per share and $4.79 billion in revenue. In the third quarter of the previous year, Southwest had earnings of $0.34 per share and revenue of $4.54 billion.
Net income for the third quarter was $382 million and operating income was $649 million, resulting in an operating margin of 13.5%. Fuel costs were $2.94 per gallon, compared to the previous year’s $3.06 per gallon. Looking ahead to the fourth quarter, fuel costs are expected to be in the range of $2.70 to $2.75 per gallon.
Shares of Southwest closed Wednesday even at $34.20. The initial reaction following the release of the earnings report in the premarket was positive, and shares opened Thursday at $35.00. The stock has a consensus analyst price target of $37.78 and a 52-week trading range of $16.17 to $35.49. The company has a market cap of $23 billion.
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JetBlue
JetBlue Airways reported its earnings as $0.24 per share, on $1.53 billion in revenue. The consensus earnings estimates had called for $0.26 in earnings per share and $1.54 billion in revenue. In the third quarter from the previous year, earnings came to $0.21 per share and revenue totaled $1.44 billion.
Net income for the third quarter was $79 million, which was up from $71 million in the third quarter of the previous year. Revenue passenger miles for the third quarter increased by 5.9% to 10.1 billion on a capacity increase of 4.5%, which resulted in a load factor of 86.2%. Yield per passenger mile was $13.96, or up 0.9% from the same quarter in the previous year. JetBlue’s CEO cited improved profitability across the carrier’s network.
Shares of JetBlue closed Wednesday down about 3% at $11.18. The initial reaction following the release of the earnings report in the premarket was positive, and shares opened at $11.46. Shares have a consensus price target of $13.50 and a 52-week trading range of $7.05 to $12.83. JetBlue has a market cap of $3 billion.
United Continental
United Continental posted earnings of $2.75 per share and $10.56 billion in revenue. The consensus estimates were $2.68 in earnings per share and revenue of $10.56 billion. The results also compared to $1.51 in earnings per share and $10.23 billion in revenue in the third quarter of last year. Net income for the most recent quarter was $1.1 billion, which was its highest quarterly profit ever, and up from the previous year’s $541 million.
Third-quarter passenger revenue increased 4.4% to $9.3 billion. The revenue from cargo this quarter grew 19.1% year-over-year to $237 million from higher cargo volumes. Consolidated revenue passenger miles increased 0.4%, and consolidated available seat miles increased 0.5%. The company claims to be executing against its $2 billion cost reduction plan, improving its balance sheet and returning cash to shareholders.
Shares of United closed Wednesday down almost 1% at $49.06. The initial reaction following the release of the earnings report in the premarket was negative, and shares opened at $46.86. The consensus price target is $57.44, and shares have traded in a 52-week range of $29.63 to $52.45. The company has a market cap of $18 billion.
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