=Southwest Air (LUV) reported earnings on Thur 21 Jul 2016 (b/o)

Southwest Air misses by $0.02, reports revs in-line :

• Reports Q2 (Jun) earnings of $1.19 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of $1.21; revenues rose 5.3% year/year to $5.38 bln vs the $5.4 bln Capital IQ Consensus.
• Based on current bookings and yields, the Company expects third quarter 2016 RASM to decline in the three to four percent range, compared with third quarter 2015 RASM (excluding the one-time special revenue adjustment of $172 million recorded in third quarter 2015 as a result of the Chase amendment and a resulting required change in accounting methodology).
• Based on current trends and excluding fuel and oil expense, special items, and profitsharing expense, the Company expects its third quarter 2016 and annual 2016 unit costs to increase approximately two percent, and approximately one percent, respectively, as compared with the same year-ago periods, largely due to additional depreciation expense associated with the accelerated retirement of the Company's Classic fleet (Boeing 737-300/-500 aircraft) to no later than third quarter 2017.