Southwest Airlines Posts Surprise Profit Amid Policy Change

3 days ago

Isabelle Lee

"Third name is Southwest, ticker LUV. So stock is rising more than 5% in postmarket trading. They posted a surprise adjusted profit. So at least we're ending on a good note. So, the good news was boosted by fees from its new policy of charging passengers for bags. Maybe it's not good news for us and expected record operating sales in the fourth quarter. So, the company earned 11 cents per share versus an estimated loss of 3 cents. I always just find it fun when the estimation is a loss and then you post a gain. So, the stock is up fractionally for the year through Wednesday close, but tomorrow it will probably see a pop."

The insight highlights Southwest Airlines's surprise profit driven by a new fee policy, contrasting with analyst expectations of a loss. The mention of potential near-term upward movement (pop) reinforces a bullish outlook, supported by the company's broader turnaround initiatives.

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