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Sep 30
Southwest Q3 2025 Earnings Report
Southwest Airlines reported record Q3 revenue and reaffirmed EBIT guidance for full-year 2025.
Key Takeaways
Southwest Airlines delivered record operating revenues of $6.9B in Q3 2025, driven by strong demand and strategic initiatives. Despite a modest decline in net income year-over-year, the company outperformed expectations on unit revenues and costs, and remains confident in delivering record revenue in Q4.
Achieved record Q3 revenue of $6.9B, up 1.1% YoY.
Reported net income of $54M and EPS of $0.10.
Adjusted EPS came in at $0.11, excluding special items.
Company reaffirmed full-year EBIT guidance of $600M to $800M.
Southwest
Southwest
Southwest Revenue by Segment
Southwest Revenue by Geographic Location
Revenue by Segment
Passenger Revenue
CapyFin.comFreight Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.com Forward Guidance
Southwest expects to deliver a record Q4 revenue, driven by continued strong demand, product innovation, and cost discipline. EBIT guidance for full year remains in the $600M–$800M range.
Positive Outlook
- Expect all-time quarterly record revenue in Q4 2025.
- Reaffirmed full-year EBIT guidance between $600M and $800M.
- Unit costs (CASM-X) rose 2.5%, better than guidance.
- Fuel efficiency improved 2.4% YoY.
- Expanded product offerings and partnerships supporting future revenue growth.
Challenges Ahead
- Net income declined 19.4% YoY.
- Load factor decreased 1.4 pts to 79.8%.
- Trips flown and enplaned passengers declined YoY.
- Fuel cost per gallon remained relatively high at $2.40.
- Ongoing inflationary pressures affecting labor and operating costs.