Southwest Airlines profit in Q4 will be close to zero
2022.12.29 14:32
Southwest Airlines profit in Q4 will be close to zero
Budrigannews.com – In a note to clients on Thursday, analysts at Raymond James stated that Southwest Airlines (NYSE:) was unsurprisingly affected by the recent weather on flights. operations indicate that the carrier will experience the greatest impact on earnings when compared to other companies.
“Due to full planes and a greater risk of flight crews “timing out” toward the end of the month, bad weather in a single region (let alone a rolling impact across multiple regions) during this peak holiday period is difficult for airlines in general,” the analysts explained. Additionally, the two months of November and December account for the majority of 4Q revenue and profits.”
But they said Southwest will probably still make a small profit in the fourth quarter of 22.
The analysts added, “The meltdown appears to have been caused by Southwest’s exposure to airports that struggled the most with severe weather, its ‘daisy chain’ point-to-point network, and its less sophisticated crew scheduling system.”
More Southwest Airlines to resume flights on Friday
In addition, they believe Alaska Air Group (NYSE:), which comes in second place, whereas American Airlines likewise, JetBlue Airways are probably the least affected of the airlines covered by Raymond James.
