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Mar 31
Southwest Q1 2025 Earnings Report
Southwest Airlines reported a net loss amid record revenue, citing softness in domestic leisure demand and macroeconomic challenges.
Key Takeaways
Southwest Airlines posted a Q1 net loss of $149 million despite achieving record revenue of $6.4 billion, driven by improved yields and cost efficiencies. Domestic leisure softness and inflationary pressures impacted results.
Recorded $6.4 billion in revenue, a Q1 record
Net loss of $149 million despite operational cost efficiencies
Average passenger fare rose 11.5% year-over-year
Fuel efficiency improved due to higher use of -8 aircraft
Southwest
Southwest
Southwest Revenue by Segment
Revenue by Segment
Passenger Revenue
CapyFin.comFreight Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Q2 guidance reflects continued initiative benefits but acknowledges soft booking trends and inflation pressures.
Positive Outlook
- RASM expected flat to down 4%, showing resilience amid demand softness
- Capacity (ASMs) projected up 1% to 2%
- CASM-X rise expected to moderate (3.5%–5.5%)
- Fuel costs expected to drop to $2.20–$2.30/gallon
- Ongoing cost initiatives reaffirmed with $1.8B EBIT contribution target for 2025
Challenges Ahead
- Continued softness in domestic leisure travel demand
- Second-half capacity reductions due to macro uncertainty
- No reaffirmation of full-year 2025/2026 EBIT guidance
- Inflationary pressure on labor and other costs persists
- RASM outlook impacted by competition and weaker booking trends
Revenue & Expenses
Visualization of income flow from segment revenue to net income