Southwest Airlines, American Airlines, UPS and Honeywell reported mixed third-quarter results.

Southwest Airlines

Southwest Airlines 'third-quarter profit fell sharply, with net income falling 65% year-on-year to $67 million, or earnings per share of $0.11.However, adjusted earnings per share were $0.15, exceeding Wall Street's expectation of $0.The company's revenue increased by more than 5% to US$6.87 billion, exceeding market expectations of US$6.74 billion.

Although costs other than fuel rose by 13%, the company expects unit revenue to increase 3.5% to 5.5% in the fourth quarter, benefiting mainly from strong holiday booking demand and stable travel demand.

In order to improve profitability, Southwest Airlines announced a $2.5 billion share repurchase plan, with the first batch of $250 million being purchased through accelerated repurchase methods.In addition, Southwest Airlines is cutting underperforming routes and adjusting its seating policy to launch high-end seating services with greater legroom.The company has formulated a strategic plan to increase profits by $4 billion by 2027.

Southwest Airlines shares rose more than 3% in pre-market trading after the earnings report.

American Airlines Group

American Airlines raised its full-year profit forecast and expected adjusted earnings per share to reach as much as $1.60, up from its previous estimate of $1.30.After the chief commercial officer was fired earlier this year after a failed booking strategy, the company made strategic adjustments to its sales strategy to achieve profit growth.

The company expects fourth-quarter earnings per share to be between $0.25 and $0.50, above analysts 'expectations of $0.29.In the third quarter, American Airlines reported adjusted earnings per share of $0.30, double market expectations, and revenue reached $13.65 billion.

American Airlines CEO Robert Isom expressed optimism about the company's redesigned sales and distribution strategy to re-attract business travelers.The company's improved relationships with corporate customers and travel agencies are expected to improve long-term revenue performance.

Other earnings highlights:

UPS: Third-quarter profit exceeded expectations, with earnings per share of $1.76, beating expectations of $1.63.UPS raised its operating margin forecast to 9.6%, reporting comprehensive revenue of $22.25 billion, slightly above market expectations.The company's business volume in the United States has increased and has signed a U.S. Postal Service air freight contract.

Honeywell: Third-quarter results were mixed, with earnings per share of $2.58, beating expectations of $2.50, but revenue of $9.73 billion, below expectations of $9.9 billion.Shares fell 3%, as aerospace and automation revenue fell short of expectations.

Short-term outlook

Despite cost pressures and strategic challenges, the aviation industry has shown resilience.Both Southwest Airlines and American Airlines pointed to strong travel demand and operational adjustments as the main supporting factors for optimism about the 2024 outlook.As airlines scale back loss-making operations, the market remains optimistic in the short term.