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Southwest Airlines (LUV)
NYSE:LUV
Earnings Data
Report Date
Apr 23, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.52Last Year’s EPS
-0.13Same Quarter Last Year
Moderate Buy
Based on 17 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call was largely constructive: management highlighted successful, on-time execution of a broad transformation in 2025 that produced record revenues, outperformance on cost targets, improved operational reliability, sizable buybacks, and a materially higher starting point for 2026 earnings (guide of at least $4.00 EPS). Near-term challenges and uncertainties were acknowledged, including a small Q4 RASM decline (-0.2% YoY), projected CASM‑X pressure (~3.5% YoY in Q1), variability in load factor, and uncertainty around how quickly ancillaries and upsell behaviors will mature. On balance the positive operational and financial progress and the strong 2026 earnings guide outweigh the near-term headwinds and remaining execution/behavioral uncertainties.Company Guidance
Record Revenues and Full-Year EBIT Beat
Operating revenues of $7.4B in Q4 and $28B for the full year were quarterly and annual records. Full-year EBIT was $574M, above prior guidance of $500M; Q4 EBIT was $386M.
Aggressive Capital Return and Balance Sheet Strength
Completed $2.6B in share buybacks in 2025 (about 14% of shares outstanding) and distributed $399M in dividends. Ended the quarter with $3.2B in cash and a gross leverage ratio of 2.4x, within targets. Issued $1.5B of unsecured bonds in November.
Large Transformation Delivered On Time
Implemented many strategic initiatives in 2025 (bag fees, basic economy, flight-credit expiration, variable loyalty earn/burn, Chase co-brand amendment, free WiFi for loyalty members, Expedia/Priceline partnerships, new partners, Getaways, redeye flying, reduced turn times, tech upgrades). Retrofitted 800+ aircraft for assigned and extra legroom seating and launched those products on schedule.
Operational Excellence
Ranked #1 in on-time performance, completion factor and lowest extreme delays in December; earned The Wall Street Journal's Best U.S. Airline of 2025, highlighting improved operational reliability during a major transformation.
Strong 2026 Earnings Guidance
Management is guiding full-year 2026 adjusted EPS of at least $4.00 versus 2025 adjusted EPS of $0.93 (lower end of internal forecast), and Q1 2026 adjusted EPS of at least $0.45 versus a loss of $0.13 in Q1 2025.
Material RASM and Capacity Outlook for Q1
Expecting Q1 RASM to increase by at least 9.5% year-over-year. Q1 capacity is expected to grow 1%–2% year-over-year while operating with ~7 fewer aircraft, reflecting efficiency gains.
Cost Discipline and Fleet Investment Plan
Outperformed a $370M cost reduction target for 2025. Q4 CASM‑X was up only 0.8% YoY despite less capacity than planned. Projected CASM‑X increase of ~3.5% YoY in 1Q (including ~1.1 points from removing 6 seats on 737‑700s). Expect 66 Boeing 737‑8 deliveries in 2026, retirement of ~60 aircraft, and net capital spending of $3.0B–$3.5B.
Positive Early Customer Reception to New Products
Assigned seating and extra legroom launched Jan 27; company reports customer response 'overwhelmingly positive' and early ancillary / buy-up activity encouraging. Management believes these products will be meaningful contributors to 2026 revenue and corporate demand.
LUV Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
LUV Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 28, 2026 | $40.86 | $48.50 | +18.70% |
Oct 22, 2025 | $33.61 | $31.51 | -6.25% |
Jul 23, 2025 | $37.07 | $32.93 | -11.17% |
Apr 23, 2025 | $25.12 | $26.05 | +3.69% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Southwest Airlines (LUV) report earnings?
Southwest Airlines (LUV) is schdueled to report earning on Apr 23, 2026, Before Open (Confirmed).
What is Southwest Airlines (LUV) earnings time?
Southwest Airlines (LUV) earnings time is at Apr 23, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is LUV EPS forecast?
LUV EPS forecast for the fiscal quarter 2026 (Q1) is 0.52.
