Southwest Airlines Co (NYSE:LUV) was hit hard on Wednesday following the release of its earnings report for the third quarter of 2016.
Southwest Airlines Co reported revenue of $5.14 billion during the third quarter of 2016. This is down roughly 3% from revenue of $5.32 billion reported in the third quarter of 2015. It also failed to reach the $5.17 billion in revenue that Wall Street was expecting.
Southwest Airlines Co reports that its revenue for the third quarter of 2016 was harmed by a July outage. It claims this costs the company $55 million in revenue during the quarter.
Southwest Airlines Co reported earnings per share of 93 cents for the third quarter of 2016. The airline company reported earnings per share of 94 cents during the same time last year. Analysts were expecting the company to report earnings per share of 88 cents for the quarter.
Net income reported by Southwest Airlines Co in the third quarter of 2016 was $582 million. This is a drop from the net income of $623 million reported by LUV in the third quarter of the year prior.
Southwest Airlines Co also reported that operating unit revenues for the third quarter of 2016 were down 4.1% when compared to the third quarter of 2015. The company expects this trend to continue into the fourth quarter. It is expecting operating unit revenues to decrease by 4% to 5% during this time.
Southwest Airlines Co also saw its operating costs during the third quarter of 2016 increase by 6.8%. It expects costs to continue to increase in the range of 4% to 5% for the fourth quarter of the year.
LUV stock was down 10% as of Noon Wednesday.
