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Dec 31, 2024
Southwest Q4 2024 Earnings Report
Reported record revenues driven by tactical actions and strong demand.
Key Takeaways
Southwest Airlines reported a fourth-quarter net income of $261 million, or $0.42 per diluted share, and a record fourth-quarter operating revenue of $6.9 billion. The results were driven by tactical initiatives and a constructive demand environment. The company is also launching a $750 million accelerated share repurchase program.
Reported fourth quarter net income of $261 million, or $0.42 per diluted share.
Reported record fourth quarter operating revenues of $6.9 billion.
Revenues per available seat mile, excluding special items, increased 8.0 percent year-over-year.
Announced a $750 million accelerated share repurchase program.
Revenue by Segment
Forward Guidance
The Company expects first quarter 2025 RASM to increase in the range of 5 percent to 7 percent, year-over-year and first quarter 2025 CASM-X to increase in the range of 7 percent to 9 percent, year-over-year.
Positive Outlook
- RASM is expected to increase in the range of 5% to 7% year-over-year for Q1 2025.
- Capacity rationalization and continued focus on the execution of its tactical initiatives are expected to improve revenue.
- Continued strength in the demand environment is anticipated.
- Unit cost trends are expected to improve throughout the year as labor comparisons ease.
- Efficiency initiatives are expected to generate modest capacity growth.
Challenges Ahead
- ASMs are expected to decrease 2% to 3% year-over-year for Q1 2025.
- Economic fuel costs per gallon are estimated to be $2.50 to $2.60 for Q1 2025.
- CASM-X is expected to increase in the range of 7% to 9% year-over-year for Q1 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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