Southwest's third-quarter revenue rose 21 percent to a record $8.4bn while fuel cost $3.92 a gallon against $2.40 a year earlier

Bob Jordan says the airline's earnings power holds up even with much higher fuel. The third-quarter results Southwest Airlines filed with the SEC on Wednesday put numbers on that claim: operating revenue rose 21.2 percent to a record $8,422m, while fuel cost $821m more than a year earlier.

Southwest paid $3.92 a gallon for fuel in the quarter, against $2.40 a year ago and above the $3.70 to $3.75 it had assumed. The company put the hit at $1.08 a share. Net income still rose to $270m, or 55 cents a share, from $54m, or 10 cents. Adjusted earnings were 66 cents.

Revenue per available seat mile rose 21.6 percent. The operating margin was 4.5 percent.

For the fourth quarter Southwest assumes fuel of about $4.55 a gallon and expects adjusted earnings of 55 to 80 cents a share, and $2.60 to $2.85 for the full year. It will set out multi-year targets at a Capital Markets Day in New York on March 2, 2027.