Southwest Airlines is up and up, Southwest airlines stock is up.
That’s the prevailing view from the company, which is up by 11% on the day, to $52.70, up from $52 a share a year ago.
Southwest Airlines has been a darling of Wall Street, with a market cap of $1.6 trillion.
The airline has grown to be the fifth-largest carrier in the U.S., according to the latest data from Thomson Reuters.
The stock is trading at $52, up 1% on Tuesday.
Southwest was already a favorite of investors and analysts.
It’s a good day for Southwest Airlines, said Michael O’Leary, senior analyst at Jefferies.
Southwest is on track to record its first profit since the recession and its first ever quarterly revenue increase since it was spun off from Delta in 2013.
“We are seeing an acceleration of the turnaround,” said O’Brien, who added that the company’s earnings are expected to rise from $7.9 billion in 2015 to $11.4 billion in 2018.
“The company’s capital structure is improving and its operating margins are improving.”
Southwest was also on track for a fourth straight quarter of net profit.
The company reported a net loss of $3.1 billion for the quarter.
Southwest, which had a profit of $10.6 billion in 2016, has struggled since its acquisition of American Airlines in 2009.
The carrier lost more than $600 million in 2017, according to Thomson Reuters data.
In a statement on Tuesday, Southwest CEO Ed Bastian said the company “has seen significant improvement in its financial position, which includes the strengthening of our balance sheet, strong growth in revenues and earnings, and the expansion of our fleet and operations.”
Southwest Airlines said it expects to post a net profit of around $5 billion for 2018, up 12% from last year’s $4.6 million.