Southwest Airlines reported third-quarter 2024 net income of $67 million, or $0.11 per share, on total operating revenues of $6.87 billion, an increase of over 5% year-over-year. Adjusted for one-time items, the company reported $89 million in net income, or $0.15 per share, surpassing Wall Street estimates for a break-even quarter.
Concurrently, Southwest Airlines and activist investor Elliott Investment Management reached a settlement to avert a proxy fight. The agreement includes the appointment of six new directors to Southwest's board, with five nominated by Elliott and one former Chevron CFO. Executive Chairman Gary Kelly will step down next month, while CEO Bob Jordan will retain his position.
The company also provided an optimistic outlook for the fourth quarter, forecasting unit revenue to increase between 3.5% and 5.5% on a 4% drop in capacity. Furthermore, Southwest authorized a new $2.5 billion share repurchase program, with an initial $250 million accelerated buyback, signaling confidence in its future performance.
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