Southwest Airlines Company NYSE:LUV Price, Chart, News & Insight

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.

💬

Global Finance News 01-29-26

Southwest Airlines Cuts 2025 EBIT Outlook on Shutdown Impact and Fuel Costs

Southwest Airlines (NYSE: LUV) revised its full-year 2025 earnings outlook, lowering its expected earnings before interest and taxes (EBIT), excluding special items, to approximately $500 million. The company had previously projected $600–800 million.

Southwest cited two primary headwinds: reduced revenue stemming from the recent U.S. government shutdown and higher fuel prices. Despite the temporary decline in demand during the shutdown, the airline noted that bookings have since recovered to prior levels.

The company reiterated that its EBIT guidance excludes special items and fleet transaction gains or losses.

💬

WS Investor 12-05-25

Southwest Airlines completes $1.5 billion debt offering

Southwest Airlines (NYSE: LUV) announced the completion of a $1.5 billion public debt offering on November 3, 2025, consisting of $750 million of 4.375% Notes due 2028 and $750 million of 5.250% Notes due 2035. The notes were issued under an indenture dated February 6, 2024, with U.S. Bank Trust Company serving as trustee.

The offering, conducted under the company’s automatic shelf registration statement, was managed by a syndicate including BofA Securities, Citigroup, Goldman Sachs, J.P. Morgan, and Morgan Stanley. Proceeds will be used for general corporate purposes, including debt repayment and capital expenditures.

💬

The Investor 11-04-25

Southwest Airlines (NYSE: LUV) reported record Q3 2025 revenue of $6.9 billion and net income of $54 million ($0.10 per share), exceeding expectations for unit revenues, costs, and profit. Excluding special items, net income was $58 million ($0.11 per share).

The company returned $439 million to shareholders through dividends and buybacks and reaffirmed its 2025 EBIT guidance of $600–800 million.
Southwest also announced the upcoming launch of assigned and extra legroom seating for flights starting January 27, 2026, with early bookings in line with expectations.

CEO Bob Jordan highlighted that Southwest is making strong progress in its transformation plan, with better-than-expected financial performance, leading operational reliability, and anticipated margin expansion in Q4 2025.

💬

European Investor 10-22-25

Southwest Airlines Q1 2025 Summary

Southwest Airlines reported a net loss of $149M ($0.26/share) in Q1 2025, improving from a $231M loss in Q1 2024. Excluding special items, the adjusted loss was $77M ($0.13/share). Despite the loss, revenue hit a record $6.4B, driven by strong yields and strategic initiatives.

The airline reaffirmed its $1.8B 2025 EBIT target, with initiatives like Expedia integration, loyalty updates, and upcoming basic economy and bag fees. Q2 guidance shows flat to -4% RASM and a 1–2% capacity increase. Liquidity stands at $9.3B, well above debt of $6.7B. Full-year capacity growth is revised to just +1%, reflecting demand softness.

💬

M

ME NEWS 04-24-25

Southwest Airlines Co. (NYSE: LUV) announced amendments to its Cooperation Agreement with Elliott Investment Management L.P. on February 19, 2025. The amendment increases Elliott's maximum economic exposure in Southwest from 14.9% to 19.9% of outstanding common stock while extending restrictions on beneficial ownership above 12.49% until April 1, 2026, or the day after the record date for Southwest’s 2026 Annual Meeting of Shareholders.

Additionally, Ryan Green, the Executive Vice President & Chief Transformation Officer, has decided to step down from his position, effective April 1, 2025.

These developments highlight Elliott's growing stake in Southwest and a leadership transition at a crucial time for the airline.

💬

European Investor 02-19-25

Southwest Airlines Announces Workforce Reduction in Corporate and Leadership Roles

DALLAS – Southwest Airlines (NYSE: LUV) has announced a reduction of approximately 1,750 corporate and leadership roles, representing 15% of corporate positions, as part of its ongoing transformation efforts. The cuts include 11 senior leadership positions (Vice President and above), also amounting to 15% of the company's senior management committee. The separations are expected to be substantially complete by the end of Q2 2025.

CEO Bob Jordan described the move as a necessary but difficult decision to make Southwest a leaner and more agile organization. The company expects partial-year savings of approximately $210 million in 2025 and full-year savings of $300 million in 2026, excluding a one-time severance-related charge of $60 million to $80 million in Q1 2025.

Southwest Airlines remains committed to its transformation plan, focusing on efficiency while continuing to serve its passengers and uphold its legacy of hospitality.

💬

Global Finance News 02-18-25

Southwest Airlines reported record revenue of $27.5 billion for 2024, with a net income of $465 million. The fourth quarter saw $6.9 billion in revenue and $261 million in net income. Excluding special items, net income for the year was $597 million. The airline maintained strong liquidity at $9.7 billion and returned $680 million to shareholders through dividends and buybacks.

Looking ahead, Southwest expects a 1-2% capacity increase in 2025 and plans to improve cost efficiency, aiming for an operating margin of 3-5%. It also announced a $750 million accelerated share repurchase program. Fuel costs were managed effectively, with hedging strategies in place. The company remains focused on optimizing its operations, expanding seating options through its Chase co-brand agreement, and modernizing the customer experience.

💬

European Investor 01-30-25

BofA downgrades LUV from hold to underperform

💬

European Investor 01-19-25

NYSE:LUVFollow

NYSE:LUV