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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.
Southwest
Southwest
Southwest Revenue by Segment
Revenue by Segment
Passenger Revenue
CapyFin.comFreight Revenue
CapyFin.comOther Revenue
CapyFin.com 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.
- Inflationary pressures, including those associated with labor contracts ratified in 2024, are expected to continue.
- Capacity moderation efforts are expected to impact costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income