Southwest Airlines (NYSE:LUV) shares dropped more than 5% pre-market today following the release of its Q2 financial results. The company's EPS for the quarter stood at $1.09, aligning with the Street estimate. Moreover, revenue showed a year-over-year increase of 4.6% to reach $7.04 billion, surpassing the Street forecast of $6.98 billion.

However, the load factor, which measures the percentage of seats filled on flights, came in weaker than anticipated at 83.4%, compared to the consensus expectation of 85.2%. This factor could potentially explain the drop in share value after the earnings report.

Looking ahead, based on the current revenue and cost trends, Southwest Airlines anticipates achieving record operating revenue and a positive outlook for Q3/23. Additionally, the company expects year-over-year margin expansion for the entire year of 2023.