Revenue
Earnings
The consensus target for earnings per share in Q2 2025 is $0.52, which compares to $0.58 reported in Q2 2024. In Q1 2025, the company reported adjusted loss of $0.13 per share.
Points to note
Southwest is likely to have faced headwinds in the second quarter from a challenging macro environment and inflationary pressures that may have impacted travel demand. Domestic travel demand trends, in particular, can have a meaningful impact on the company’s performance.
LUV expects its unit revenue for the second quarter of 2025 to be flat to down 4% YoY and capacity to be up 1-2% YoY. The airline expects unit costs, excluding fuel, to increase 3.5-5.5% in Q2, driven by inflationary pressures. Fuel cost per gallon is expected to be $2.20-2.30 in Q2.
In the first quarter, unit revenues increased 3.5% YoY while capacity was down 1.9%. Unit costs, ex-fuel, was up 4.6% YoY. Traffic was down 7.4%. Passenger revenue per available seat mile (PRASM) was up 3.7% YoY.