Southwest Airlines reported solid fourth-quarter and full-year 2025 results and issued a notably strong outlook for 2026, reflecting the impact of a broad business transformation implemented over the past year. The company generated net income of $441 million in 2025, or $0.79 per share, while adjusted net income reached $512 million, or $0.93 per share. Adjusted EBIT totaled $574 million for the year, exceeding prior guidance of $500 million.

Southwest delivered record operating revenues of $28.1 billion in 2025 and returned $2.9 billion to shareholders through dividends and share repurchases. The airline completed $2.6 billion of share buybacks, representing about 14% of shares outstanding, while maintaining its investment-grade credit rating. Operational improvements and customer-focused initiatives helped Southwest earn the top ranking in The Wall Street Journal’s Best U.S. Airlines of 2025.

Looking ahead, the company is guiding for 2026 adjusted earnings per share of at least $4.00, implying growth of more than 300% compared with 2025. Management expects further upside as recently introduced initiatives, including assigned and extra-legroom seating, new fare products, bag fees, loyalty program optimization, expanded distribution partnerships, and free Wi-Fi for loyalty members, gain traction. Despite some early-year disruption from Winter Storm Fern, Southwest said first-quarter bookings and early 2026 trends point to strong financial performance driven by higher revenue quality, improved cost discipline, and increased aircraft utilization.