Southwest Airlines (LUV) Falls Hard on Dismal Q3

We recently published 10 Stocks Slump Amid Wall Street Cheer; 2 Hit Rock Bottom. Southwest Airlines Co. (NYSE:LUV) is one of the worst performers on Thursday.

Southwest Airlines declined by 6.25 percent on Thursday to finish at $31.65 apiece after reporting a dismal earnings performance in the third quarter of the year.

In an updated report, Southwest Airlines Co. (NYSE:LUV) said net income during the period dropped by 19.4 percent to $54 million from $67 million in the same period last year, while total operating revenues inched up by only 1.1 percent to $6.95 billion from $6.87 billion year-on-year.

Despite the results, Southwest Airlines Co. (NYSE:LUV) maintained its EBIT outlook for full-year 2025 at $600 million to $800 million.

For the fourth quarter alone, the company expects available seat miles (ASM) to increase by 6 percent, while operating revenues per ASM (RASM) are expected to grow between 1 and 3 percent.

Commenting on the results, Southwest Airlines Co. (NYSE:LUV) President and CEO Bob Jordan said he was pleased with the company’s results, which are expected to ramp up in the fourth quarter of the year and into next year.

“And while early, indicators for our new assigned and extra legroom seating products are in line with expectations. We are encouraged by our momentum and confident in our direction. Our people continue to lead the way, and I couldn’t be more excited about 2026 and beyond,” he noted.

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Disclosure: None. This article is originally published at Insider Monkey.