Q3 25 EPS
$0.11
BEAT +400.55%
Est. $-0.04
Q3 25 Revenue
$6.95B
BEAT +0.22%
Est. $6.93B
vs S&P Since Q3 25
+5.6%
BEATING MARKET
LUV +12.9% vs S&P +7.3%
Market Reaction
Did LUV Beat Earnings? Q3 2025 Results
Southwest Airlines delivered a standout third quarter for fiscal 2025, posting earnings per share of $0.11 against a consensus estimate of negative $0.04, a beat of more than 400%, while revenue of $6.95 billion edged past the $6.93 billion estimate … Read more Southwest Airlines delivered a standout third quarter for fiscal 2025, posting earnings per share of $0.11 against a consensus estimate of negative $0.04, a beat of more than 400%, while revenue of $6.95 billion edged past the $6.93 billion estimate and grew 1.1% year-over-year. The company recorded GAAP net income of $54 million, with the demand inflection that began in early July sustaining momentum throughout the quarter and pushing both unit revenues and unit costs ahead of prior guidance midpoints. RASM rose 0.4% on capacity up 0.8%, while CASM-X climbed only 2.5% year-over-year, reflecting the cost discipline central to what CEO Bob Jordan has called the most significant transformation in Southwest's history. As the airline advances that transformation, with assigned seating launching in January 2026 and over 400 aircraft already retrofitted for extra legroom, management reaffirmed full-year 2025 EBIT guidance of $600 million to $800 million and projected all-time record quarterly revenue in Q4. Shares gained more than 6% following the results, and rival carriers are under similar scrutiny as the broader airline sector navigates a shifting demand environment.
Key Takeaways
- • Positive demand inflection beginning in early July with sustained momentum throughout Q3
- • Better-than-anticipated unit revenues and unit costs
- • Corporate travel improved sequentially from Q2
- • Loyalty revenue up 7% year-over-year
- • New co-brand credit card acquisitions up double digits year-over-year
- • Fuel efficiency improved 2.4% year-over-year from more Boeing 737-8 aircraft in fleet
- • Broad-based cost discipline across the organization
- • Fuel costs decreased 6.1% year-over-year to $1.331 billion
LUV YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
LUV Revenue by Segment
With YoY comparisons, source: SEC Filings
“We continue to make substantial progress as we execute the most significant transformation in Southwest Airlines' history. We quickly implemented many new product attributes and enhancements, and the results are showing—we delivered a profitable quarter, with both unit revenues and unit costs performing better-than-anticipated, are reaffirming our full year 2025 EBIT guidance, and expect meaningful margin expansion in the fourth quarter.”
— Bob Jordan, Q3 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% |