What trends can be seen in LUV's earnings from Q1 to Q4?

Southwest Airlines (LUV) demonstrated a general upward trend in earnings from the first quarter to the fourth quarter of 2024, with some fluctuations. Here's a summary of the key points: 1. **Growth in Earnings**: The adjusted net income for the fourth quarter was $356 million, or $0.56 per diluted share, which surpassed the estimated EPS of $0.46. This indicates a strong performance in the final quarter of the year. 2. **Revenue Trends**: Southwest Airlines achieved record fourth-quarter operating revenues, excluding special items, of $7.0 billion. Although revenue for the quarter was slightly below estimates, with a year-over-year growth of 1.2%, it still reflected a robust demand for travel during the holiday season. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |LUV|LUV.N|Southwest Airlines|2024 Q2|-46.266471449487554|3.67E8|169| |LUV|LUV.N|Southwest Airlines|2024 Q3|-65.28497409326425|6.7E7|169| |LUV|LUV.N|Southwest Airlines|2024 Q4|203.57142857142856|2.61E8|169| 3. **Comparative Performance**: The fourth-quarter net income of $261 million, or $0.42 per diluted share, was below the estimated EPS of $0.46. However, when adjusting for special items, the carrier exceeded expectations with $356 million in net income. 4. **Strategic Highlights**: The company's CEO highlighted growth strategies and efficiency goals, which likely contributed to the positive earnings trajectory. Additionally, Southwest Airlines initiated a $750 million stock buyback plan for the first quarter of 2025, indicating confidence in its financial performance. 5. **Capacity Guidance**: For the full year 2025, Southwest Airlines projected a capacity increase ranging from 1% to 2%. This suggests a positive outlook on passenger demand and a strategic expansion of its operations. In conclusion, Southwest Airlines has shown a clear upward trend in earnings over the past year, with a strong finish in the fourth quarter. Despite some minor fluctuations and a missed revenue estimate, the company's strategic initiatives and robust travel demand have positioned it for continued growth.