In a recent earnings report, Southwest Airlines exceeded profit expectations for the third quarter, driven by effective cost-cutting measures. The company set a new revenue record and experienced a rise in revenue, though its profit decreased significantly by two-thirds due to increased costs. Despite these challenges, Southwest noted strong holiday bookings and a better-than-expected performance overall, securing a deal with Elliott Management for a board overhaul. The airline continues to navigate pricing shifts and industry pressures, with expectations for higher revenues in the upcoming quarter.