LUV

Southwest Airlines Expects Financial Outlook Remains Stable And Solid In Q4

(RTTNews) - Southwest Airlines Co. (LUV) said that it expects financial outlook remains stable and solid in fourth quarter 2019. It expects another positive year-over-year unit revenue performance in fourth quarter 2019, despite the suboptimized flight schedule during the holiday time periods, as a result of the extended MAX groundings.

Gary Kelly, Chairman of the Board and Chief Executive Officer, said, "We are engaged in ongoing discussions with The Boeing Company (Boeing) regarding compensation for damages related to the MAX groundings. The operating income reduction from the MAX groundings is estimated to be $435 million for the nine months ended September 30, 2019, and we expect the damages to continue to grow into 2020."

The company expects fourth quarter 2019 CASM, excluding fuel and oil expense and profit sharing expense, to increase in the 4 to 6 percent range, compared with fourth quarter 2018.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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