Southwest Airlines Co. warned that costs will climb faster than expected as it grapples with heavy labor expenses, undercutting gains from strong demand for leisure travel.

Southwest Airlines stock was falling on Thursday after the carrier’s fourth-quarter revenue and forward guidance both came in a little short of Wall Street’s expectations. Shares fell 2.7% to $30.80 in premarket trading.

The airline also forecast better-than-expected unit revenue (RASM), a proxy for pricing power, for the first quarter. Airlines across the U.S. have cut seating to boost fares after a surplus capacity, introduced last summer in anticipation of a demand surge, forced airlines to offer discounts and sacrifice margins.

Southwest Airlines said Thursday it swung to a fourth-quarter profit of 42 cents a share from a year-ago loss of 42 cents a share, as overall expenses fell on lower fuel costs.

Southwest's results echo sentiments laid out by Delta Air Lines, which reported quarterly results earlier in the month. Delta said demand accelerated throughout the fourth quarter, with a handful of its highest revenue days in history taking place in November and December. The company also expects travel demand to remain strong this year.

Below are the earnings highlights for Southwest Airlines Inc. (LUV): Earnings: $261 million in Q4 vs. -$252 million in the same

Figure skaters and coaches returning from the national championships were aboard the American Airlines flight that collided with a Black Hawk helicopter near Reagan National Airport on Wednesday, the U.

The lawsuit filed in Texas says the carrier's failure to remove an underperforming fund option, which holds over $2 billion in assets, has cost plan members millions.

DALLAS (AP) — DALLAS (AP) — Southwest Airlines Co. (LUV) on Thursday reported fourth-quarter profit of $261 million. On a per-share basis, the Dallas-based company said it had net income of 42 cents. Earnings, adjusted for non-recurring costs, were 56 cents per share.

Southwest Airlines confirmed the pilot had been removed from duty and apologized to customers whose travel plans were disrupted.

Dallas-based Southwest Airlines is shifting about 270 pilots from key bases in Denver and Atlanta while bulking up its presence in Baltimore and Nashville.

Southwest Airlines Co (LUV) stock saw a modest uptick, ending the day at $32.58 which represents a slight increase of $0.41 or 1.27% from the prior close of $32.17. The stock opened at $32.07 and touched a low of $31.