Southwest Airlines demonstrated strong operational performance and cost management, achieving record operating revenue and significant cost reductions. However, challenges persist with weakening leisure demand and macroeconomic uncertainty, leading to the suspension of full-year EBIT guidance.

Company Guidance -

Q2 2025

In the Southwest Airlines first quarter 2025 conference call, the company reported a record operating revenue of $6.4 billion, with a RASM increase of 3.5% on all-time record yields. Despite experiencing industry weakness, particularly in domestic main cabin travel, Southwest outperformed its guidance range. The company highlighted a significant reduction in CASM-X growth, achieving a 4.6% increase compared to an original guidance of 7-9% and a revised guidance of approximately 6%. The company also reaffirmed its targets for incremental EBIT contributions of $1.8 billion for 2025 and $4.3 billion for 2026 from its initiatives. These initiatives include transformative changes like the introduction of basic economy, the implementation of bag fees, and the reduction of flight credit expiration. While the macroeconomic environment remains uncertain, Southwest is proactively reducing capacity and maintaining cost discipline, with a plan to decrease full-year 2025 capacity to approximately 1% year-over-year.

Record Operating Revenue

Southwest Airlines reported a quarterly record operating revenue of $6.4 billion, with RASM increasing by 3.5% on all-time record yields.

Cost Reduction Achievements

CASM-X growth of 4.6% was significantly better than the original guidance of 7-9% and well below the revised guidance of approximately 6%.

Operational Excellence

Southwest Airlines led the industry in on-time performance and had the fewest extreme delays, with a completion factor of 98.6%, the best in 12 years.

Successful Expansion Initiatives

The launch of Expedia exceeded expectations with new customer acquisition, and the Rapid Rewards program optimizations led to record first-quarter spend on co-branded credit cards.

Strong Balance Sheet Management

Southwest Airlines plans to pay down $2.6 billion of debt in the second quarter and has a committed share repurchase of $1.5 billion, highlighting confidence in financial plans.

Southwest Airlines (LUV) Earnings, Revenues Date & History

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LUV Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 24, 2025	2025 (Q2)	0.51 / -	0.58	―	―	―
Apr 23, 2025	2025 (Q1)	-0.18 / -0.13	-0.36	63.89% (+0.23)	―
Jan 30, 2025	2024 (Q4)	0.46 / 0.56	0.37	51.35% (+0.19)	―
Oct 24, 2024	2024 (Q3)	0.05 / 0.15	0.38	-60.53% (-0.23)	―
Jul 25, 2024	2024 (Q2)	0.52 / 0.58	1.09	-46.79% (-0.51)	―
Apr 25, 2024	2024 (Q1)	-0.34 / -0.36	-0.27	-33.33% (-0.09)	―
Jan 25, 2024	2023 (Q4)	0.12 / 0.37	-0.38	197.37% (+0.75)	―
Oct 26, 2023	2023 (Q3)	0.38 / 0.38	0.5	-24.00% (-0.12)	―
Jul 27, 2023	2023 (Q2)	1.09 / 1.09	1.3	-16.15% (-0.21)	―
Apr 27, 2023	2023 (Q1)	-0.23 / -0.27	-0.32	15.62% (+0.05)	―

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
Apr 23, 2025	$25.37	$26.31	+3.71%
Jan 30, 2025	$31.28	$30.90	-1.21%
Oct 24, 2024	$30.21	$28.53	-5.56%
Jul 25, 2024	$26.00	$27.44	+5.54%

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.