Shares of Southwest Airlines Co. LUV,
It rose 1.5% in premarket operations on Thursday, after the airline suffered a large loss that was narrower than expected, as the drop in passenger demand was not as bad as feared . The company said reserves decreased during July. Net loss was $ 915 million, or $ 1.63 per share, after net income of $ 741 million, or $ 1.37 per share, in the same period of the prior year. Excluding non-recurring items, the adjusted loss per share was $ 2.67, compared to the FactSet loss consensus of $ 2.73. Total revenue fell 82.9% to $ 1.01 billion, but was above the FactSet consensus of $ 947.9 million, as passenger revenue decreased 87.2% to $ 704 million but exceeded expectations of $ 577 million. The load factor fell to 31.4% from 86.4%, but exceeded expectations of 20.5%. “So far in July 2020, bookings for all months have softened; travel cancellations have increased moderately; and the sequential monthly improvement rate for July revenue trends has slowed down,” the company said. The stock has fallen 38.3% so far this year through Wednesday, while the US Global Jets ETF JETS.
has dropped 48.6% and the S&P 500 SPX,
It has gained 1.4%.
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