Shares of Southwest Airlines Co. (LUV) arꦿe down about 10% Thursday morning after the airline announced second-quarter earnings.

Unit revenue declines of 8.3% year-over-year were offset by 14.1% growth in 澳洲幸运5官方开奖结果体彩网:available seat miles (ASMs), earning Southwest $7 billion in operating revenue for the quarter, an all-time record. Net income per share came in at $1.08, a significant improvement over a first-quarter loss of 27 cents per share.

Southwest said the decline in 澳洲幸运5官方开奖结果体彩网:revenue per available seat mile (RASM) was due primarily to "a five point headwind from approximately $300 million of additional breakage revenue in second quarter 2022." The higher breakage was due to a policy c💟hange eliminating expiration daওtes on pandemic-era travel vouchers.

Despite setting new revenue records, LUV stock took a tumble, partially because inflation is pushing up expenses. Operating expenses for the quarter increased 12.1% compared with the year-ago quarter. Southwest expects full-year 澳洲幸运5官方开奖结果体彩网:cost per available seat mile (CASM) will decline 1% to 2% versus 2022.

"Although our network is largely restored, it is not yet optimized," CEO Bob Jordan said in the earnings release. "We are working to align our network, fleet plans, and staffing to better reflect the current business environment."

Despite some downturns, Southwest expectsꦡ the good🌳 times to keep rolling.

"Based on current revenue and cost trends, we expect record operating revenue and a profitable outlook again for third quarter 2023," Jordan said.

However, the company estimates unit revenue will decline by 3% to 7% year-over-year in the third quarter of 2023.