S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%
Southwest Airlines

LUV Q4 2025 Earnings

Reported Jan 28, 2026 at 4:15 PM ET · SEC Source

Q4 25 EPS

$0.58

BEAT +1.75%

Est. $0.57

Q4 25 Revenue

$7.44B

MISS 0.81%

Est. $7.50B

vs S&P Since Q4 25

-13.9%

TRAILING MARKET

LUV -10.0% vs S&P +3.8%

Full Year 2025 Results

FY 25 EPS

$0.93

MISS 2.34%

Est. $0.95

FY 25 Revenue

$28.06B

MISS 0.22%

Est. $28.12B

Market Reaction

Did LUV Beat Earnings? Q4 2025 Results

Southwest Airlines wrapped up 2025 with a mixed but broadly encouraging fourth quarter, posting earnings per share of $0.58 against a consensus estimate of $0.57, a 1.75% beat, even as revenue of $7.44 billion fell just short of the $7.50 billion ana… Read more Southwest Airlines wrapped up 2025 with a mixed but broadly encouraging fourth quarter, posting earnings per share of $0.58 against a consensus estimate of $0.57, a 1.75% beat, even as revenue of $7.44 billion fell just short of the $7.50 billion analysts had expected. The top-line result still represented a 7.4% increase year-over-year, underpinned by passenger revenue growth of 7.6%, as the airline's sweeping transformation, including the introduction of bag fees, basic economy fares, and assigned seating, began reshaping its revenue profile. GAAP net income climbed to $323.00 million from $261.00 million a year ago, though adjusted net income dipped to $301.00 million as the prior-year period had benefited from a $116.00 million COVID-era flight credit adjustment. The company also exceeded its $370.00 million cost reduction target and returned $2.60 billion to shareholders through buybacks. Looking ahead, Southwest guided 2026 adjusted EPS of at least $4.00, representing more than 300% growth over 2025, with management describing that figure as the lower end of internal forecasts.

Key Takeaways

  • • Record Q4 passenger revenues of $6.8 billion, up 7.6% YoY
  • • Record Q4 operating revenues of $7.4 billion, up 7.4% YoY
  • • Revenue initiatives including bag fees, basic economy fares, and flight credit expiration
  • • Cost control outperforming $370 million cost reduction target
  • • Average passenger fare increased 7.9% YoY to $199.36
  • • Capacity increase of 5.8% in Q4 2025 YoY
  • • Lower fuel costs per gallon on economic basis at $2.41 for full year vs $2.66 prior year
24/7 Wall St

LUV YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

LUV Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Southwest closed 2025 with strong momentum. Last year we implemented the most ambitious transformation in Company history, including bag fees, basic economy fares, assigned and extra legroom seating, Rapid Rewards program optimization, online distribution expansion, and free Wi-Fi for loyalty members. We also outperformed our cost reduction goals, strengthened operational reliability through new technology, and returned $2.9 billion to our Shareholders through share repurchases and dividends. That foundation positions us well for long-term success and sets the stage for significant earnings growth this year. Our performance reflects the extraordinary work of our People, who transformed the business while continuing to serve our Customers with unparalleled hospitality and operational excellence. Their efforts enabled us to achieve $574 million in full year adjusted EBIT, and earned Southwest the top spot in The Wall Street Journal Best U.S. Airlines of 2025. I could not be more proud of what we accomplished.”

— Bob Jordan, Q4 2025 Earnings Press Release

Back to LUV Stock Page