Southwest Airlines Co.(NYSE:LUV) shares fell by 3% during morning Thursday trading in New York, despite the airline reporting better-than-expected third-quarter earnings and reaching a pivotal agreement with activist investorElliott Investment Management.

While the earnings beat and settlement should have been positive catalysts, concerns about potential Boeing delivery delays seem to have dampened investor sentiment.

Southwest Earnings Beat Expectations

Southwest posted an adjusted earnings per share (EPS) of $0.15, exceeding analyst estimates, which had predicted a breakeven quarter.

Revenue also outperformed expectations, coming in at $6.87 billion, above the forecasted $6.735 billion, as perBenzinga Prodata.

The airline...