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Shares of Southwest Airlines (LUV) - Get Southwest Airlines Co. Report  gained on Wednesday as investors shrugged off the discount airline's announcement of a cut in its expected first-quarter revenue

In a statement, the largest U.S. operator of the 737 MAX said the model's grounding combined with bad weather and reduced productivity during contract negotiations will together force the cancellation of some 9,800 flights, adding up to a $150 million cut in revenue. That is in addition to the $60 million drop from the U.S government shutdown earlier in the period, Southwest said.

Southwest also raised its unit costs growth guidance to 10% from 6%, based in large part on higher fuel costs. The carrier revised its fuel cost estimate to $2.05 a gallon from $2 to $2.05 a gallon.

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The Dallas-based discount carrier, which as of last month had 34 Boeing MAX jets out of a total of 750 airplanes, noted that it wasn't able to estimate the financial impact of the grounding beyond the current quarter.

After falling Shares of nearly 2% in pre-market trading on Wednesday, Southwest shares rebounded, rising 2.5%, or $1.22, to $49.98 on the New York Stock Exchange.

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