Southwest’s quarterly profit misses estimates, but airline says U.S. travel demand is stabilizing
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Southwest profit drops, but airline says travel demand has stabilized
Southwest posted second-quarter earnings and revenue that fell short of Wall Street’s estimates. The airline said travel demand has stabilized, echoing other airlines in recent weeks. The carrier pulled its 2025 guidance in April, citing economic uncertainty in the U.S.
Southwest Airlines on Wednesday posted second-quarter earnings and revenue that fell short of Wall Street’s estimates but said travel demand has stabilized, echoing other airlines in recent weeks.
The airline also announced a new $2 billion share buyback.
Here’s how Southwest performed in the second quarter compared with Wall Street expectations, according to consensus estimates from LSEG:
Earnings per share: 43 cents adjusted vs. 51 cents expected
43 cents adjusted vs. 51 cents expected Revenue: $7.24 billion vs. $7.3 billion expected
The carrier pulled its 2025 guidance in April, citing economic uncertainty in the U.S. Similar to other airlines, Southwest said it would cut flights during off-peak periods as carriers grappled with weaker domestic travel demand than expected at the start of the year. CEO Bob Jordan told CNBC last month that there has been more discounting this summer, which is generally the busiest travel period of the year.
Southwest expects its third-quarter unit revenue, a gauge of airlines’ pricing power, to range between a 2% drop to a 2% increase over the same July-through-September period of 2024.
Source: https://www.cnbc.com/2025/07/23/southwest-airlines-luv-2q-2025-earnings.html