Southwest Airlines (LUV, Financial) shares dropped over 4%, trading at $29.475. Despite a strong earnings report, investor sentiment remained cautious. The airline's Q3 revenue reached $6.87 billion, surpassing the expected $6.81 billion. Additionally, the adjusted earnings per share were reported at $0.15, exceeding the market forecast of $0.07.
The company is implementing "urgent measures" to control costs, including offering voluntary leave programs. This week, Southwest Airlines reached an agreement with activist investor Elliott Investment Management, appointing new board members to avoid a proxy battle. Chairman Gary Kelly will retire earlier than planned, while CEO Bob Jordan will continue in his role.
