Q1 25 EPS
$-0.13
BEAT +32.19%
Est. $-0.19
Q1 25 Revenue
$6.43B
BEAT +0.50%
Est. $6.40B
vs S&P Since Q1 25
+26.3%
BEATING MARKET
LUV +58.1% vs S&P +31.8%
Market Reaction
Did LUV Beat Earnings? Q1 2025 Results
Southwest Airlines delivered a stronger-than-feared first quarter, posting an adjusted loss of $0.13 per diluted share against a consensus estimate of $0.19, a 32.19% beat, as the carrier's sweeping transformation plan began showing tangible results.… Read more Southwest Airlines delivered a stronger-than-feared first quarter, posting an adjusted loss of $0.13 per diluted share against a consensus estimate of $0.19, a 32.19% beat, as the carrier's sweeping transformation plan began showing tangible results. Revenue climbed 1.6% year-over-year to $6.43 billion, edging past the $6.40 billion estimate, with management crediting record first-quarter yields and improved revenue management discipline for the outperformance. The single biggest cost tailwind came from fuel, where an 18.4% year-over-year decline in fuel and oil expense helped drive total operating expenses down 1.1%, allowing the airline to beat its own CASM-X guidance by a meaningful margin. Yet the quarter's upside came wrapped in caution; demand softened noticeably through the period, particularly in domestic leisure, and Southwest joined peers in withdrawing full-year EBIT guidance, citing macroeconomic uncertainty and short-lived booking trends. For the second quarter, management guided RASM flat to down 4%, while reaffirming initiative-driven EBIT contribution targets of roughly $1.80 billion in 2025 and $4.30 billion in 2026.
Key Takeaways
- • All-time record yields driven by revenue management improvements
- • Record first quarter passenger revenues of $5.8 billion
- • Capacity moderation of 1.9% decrease year-over-year
- • Fuel and oil expense decreased 18.4% year-over-year
- • CASM-X outperformed revised guidance at 4.6% increase vs. guided ~6%
- • Fuel efficiency improved 2.6% year-over-year due to more 737-8 aircraft in fleet
- • Record first quarter co-brand credit card spend
LUV YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
LUV Revenue by Segment
With YoY comparisons, source: SEC Filings
“While the broader economic environment has been dynamic, we remain focused on executing our transformational plan. On costs, we beat our previously adjusted guidance and are on track to achieve the increased cost reduction plan targets announced last month. We ran a stellar operation in first quarter, leading the industry in ontime performance and improving on almost every operating metric, year-over-year. We are seeing positive results on recently rolled out initiatives, including the launch of Expedia as a new distribution channel and the further optimization of our loyalty program. We expect to introduce basic economy and bag fees for most fare products next month and remain on track to begin selling assigned and extra legroom seats in third quarter 2025 for operation beginning in first quarter of next year.”
— Bob Jordan, Q1 2025 Earnings Press Release
LUV Earnings Trends
LUV vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
LUV EPS Trend
Earnings per share: estimate vs actual
LUV Revenue Trend
Quarterly revenue: estimate vs actual
LUV Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $0.45 | — | $7.25B | -0.37% |
| Q4 25 BEAT FY | $0.57 | $0.58 | +1.75% | $7.44B | -0.81% |
| FY Full Year | $0.95 | $0.93 | -2.34% | $28.06B | -0.22% |
| Q3 25 BEAT | $-0.04 | $0.11 | +400.55% | $6.95B | +0.22% |
| Q2 25 MISS | $0.51 | $0.43 | -16.20% | $7.24B | -0.71% |
| Q1 25 BEAT | $-0.19 | $-0.13 | +32.19% | $6.43B | +0.50% |