Q2 25 EPS
$0.43
MISS 16.20%
Est. $0.51
Q2 25 Revenue
$7.24B
MISS 0.71%
Est. $7.30B
vs S&P Since Q2 25
-8.5%
TRAILING MARKET
LUV +5.1% vs S&P +13.6%
Market Reaction
Did LUV Beat Earnings? Q2 2025 Results
Southwest Airlines delivered a disappointing second quarter, missing on both the top and bottom lines as its transformation remains a work in progress. The carrier posted earnings of $0.43 per share, falling 16.20% short of the $0.51 consensus estima… Read more Southwest Airlines delivered a disappointing second quarter, missing on both the top and bottom lines as its transformation remains a work in progress. The carrier posted earnings of $0.43 per share, falling 16.20% short of the $0.51 consensus estimate, while revenue slipped 1.5% year-over-year to $7.24 billion, nudging just below the $7.30 billion analysts had expected. The single most consequential drag was the May 28 rollout of Southwest's new basic economy product, which temporarily disrupted website conversion rates and shaved nearly half a point off second-quarter RASM, with management warning the headwind will widen to roughly one point in Q3 before normalizing. GAAP net income fell 42% year-over-year to $213 million, underscoring how much ground the airline still needs to recover. Against a backdrop where premium-focused rivals are posting stronger results, Southwest is betting its $1.80 billion initiative plan, anchored by bag fees, assigned seating, and premium upsell options, will drive sequential improvement in the second half, with full-year 2025 EBIT guided to a range of $600 million to $800 million.
Key Takeaways
- • Bag fees launched with financial benefit exceeding expectations and no negative operational impact
- • Fuel costs per gallon declined 15.9% year-over-year to $2.32
- • Fuel efficiency improved 2.9% year-over-year due to higher percentage of Boeing 737-8 aircraft in fleet
- • Average passenger fare increased 4.3% year-over-year to $186.65
- • Load factor decreased 4.1 percentage points to 78.5%
- • Domestic leisure travel stabilized with recent trends showing signs of improvement
- • Capacity increased 1.6% year-over-year
LUV YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
LUV Revenue by Segment
With YoY comparisons, source: SEC Filings
“We continued to make meaningful progress against our transformational plan in second quarter, most notably implementing bag fees and a basic economy product. We had an exceptional operational rollout and continued to deliver outstanding service—a testament to our People.”
— Bob Jordan, Q2 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% |