Southwest Airlines forecasts quarterly earnings below estimates on higher fuel

Southwest expects to earn between 35 cents and 65 cents a share in the current quarter, while analysts polled by LSEG expected 55 cents a share.

The airline in January forecast earnings per share of $4 this year, saying that it expected its new initiatives would pay off. Southwest has sought to increase revenue with bag fees and seat assignment fees.

“Achieving this outcome would require lower fuel prices and/or stronger revenue performance to offset higher fuel expense. The Company expects to provide updates to this guidance as appropriate,” Southwest said in an earnings release Wednesday.

Here’s what the company reported for first quarter compared with Wall Street expectations, according to consensus estimates from LSEG:

• Earnings per share: 45 cents vs. 47 cents cents expected
• Revenue: $7.25 billion vs. $7.27 billion expected

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