Southwest Airlines (LUV) - Get Report reported third-quarter earnings of $1.23 a share, beating estimates of $1.08, but said operating income was reduced by $435 million in the first nine months of the year on the grounding of Boeing's (BA) - Get Report 737 MAX jet.
Revenue of $5.64 billion matched Wall Street forecasts.
The company last year earned $1.08 a share on revenue of $5.58 billion.
Southwest Airlines is the biggest customer for Boeing's 737 Max jet, which has been grounded worldwide after two fatal crashes.
"While we expect the MAX groundings will put pressure on fourth-quarter 2019 unit costs, we remain diligent in our cost control efforts and currently expect fourth-quarter 2019 year-over-year unit cost growth to ease from third quarter 2019's year-over-year unit cost growth, excluding fuel and oil expense
and profit-sharing expense, of 7.6%" said CEO Gary Kelly in a statement.
The airline said it expects to receive seven MAX deliveries during the fourth quarter, with 34 that were set to be delivered in 2019 being shifted to next year.
The stock rose 5% to $55.80 in trading Thursday.
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