Southwest Airlines revenue rises but Q3 profit falls by two-thirds on higher costs

[October 24, 2024]  DALLAS (AP) — Southwest Airlines' third-quarter revenue rose to a record high but profit fell nearly two-thirds, to $67 million, on higher costs for labor and other expenses. 

Ryan Munoz, a flight attendant with Southwest Airlines, poses in the airline's newly designed uniform on Sept. 26, 2024, in Dallas. (AP Photo/Tony Gutierrez, File)

The airline, which is under pressure from hedge fund Elliott Investment Management to boost profit, said Thursday that adjusted earnings were 15 cents per share, which beat a forecast of six cents per share among Wall Street analysts.

Southwest also said it would speed up repurchase of $250 million worth of its stock, under a $2.5 billion share-buyback plan it announced last month.

Revenue rose 5%, to $6.87 billion, $100 million more than the average forecast among analysts surveyed by FactSet.

However, labor costs rose more than 12%, reflecting recent new contracts for pilots, flight attendants and other employees.

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