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Dec 31, 2025
Southwest Q4 2025 Earnings Report
Southwest reported solid Q4 results, ending 2025 with record revenues and positive net income.
Key Takeaways
Southwest Airlines posted a profitable Q4 2025, driven by strong revenue of $7.4 billion and operational improvements. Net income reached $323 million with a GAAP EPS of $0.61. The company also continued its transformation initiatives, including seating and fare restructuring, and is forecasting a strong performance for 2026.
Generated $7.4 billion in record quarterly revenue.
Achieved $323 million in net income with $0.61 EPS ($0.58 adjusted).
Adjusted EBIT reached $386 million for the quarter.
Major transformation initiatives began contributing to performance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Southwest expects significant EPS growth in 2026, driven by new seating options, product offerings, and increased demand from both leisure and business segments.
Positive Outlook
- 2026 adjusted EPS guidance of at least $4.00
- Q1 2026 adjusted EPS expected to be at least $0.45
- Anticipates earnings upside from new seat offerings and bag fees
- Sees continued growth in business and leisure demand
- Guidance reflects strong early 2026 bookings despite winter storm impact
Challenges Ahead
- Q4 RASM declined slightly due to FAA-mandated capacity cuts
- Fuel cost in Q4 was above prior guidance
- CASM-X increased 0.8% YoY in Q4
- Winter Storm Fern impacted operations early in Q1 2026
Historical Earnings Impact
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Avg. Return Before/After Earnings
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