Southwest Airlines (LUV) 2Q 2025 earnings

Southwest Airlines on Wednesday posted second-quarter earnings and income that fell in need of Wall Street’s estimates however mentioned journey demand has stabilized, echoing different airways in current weeks.

The airline additionally introduced a brand new $2 billion share buyback.

Here’s how Southwest carried out within the second quarter in contrast with Wall Street expectations, in accordance with consensus estimates from LSEG:

• Earnings per share: 43 cents adjusted vs. 51 cents anticipated
• Revenue: $7.24 billion vs. $7.3 billion anticipated

The provider pulled its 2025 steering in April, citing financial uncertainty within the U.S. Similar to different airways, Southwest mentioned it might minimize flights throughout off-peak intervals as carriers grappled with weaker home journey demand than anticipated at the beginning of the yr. CEO Bob Jordan advised CNBC final month that there was extra discounting this summer time, which is mostly the busiest journey interval of the yr.

Southwest expects its third-quarter unit income, a gauge of airways’ pricing energy, to vary between a 2% drop to a 2% improve over the identical July-through-September interval of 2024.

The airline has been overhauling its enterprise mannequin, eliminating blanket insurance policies akin to two free checked baggage for all clients and shifting from open seating to assigned seats and new boarding orders, which the provider introduced Monday.

Southwest mentioned gross sales of primary economic system suffered on its web site after it launched the restrictive new fares in May. It mentioned they’ve since returned to “expected levels” however that it harm its unit income within the second quarter by half a degree and would harm unit income by a couple of level within the third quarter.

Southwest posted web earnings of $213 million, or 39 cents per share, within the second quarter. That is down 42% over final yr, on gross sales of $7.24 billion, 1.5% decrease than a yr earlier. Adjusting for one-time objects, Southwest’s second-quarter earnings have been $230 million, or 43 cents a share, down 38% from final yr.

Passenger income per seat mile got here in at $14.10, beneath the $14.19 Wall Street had anticipated, in accordance with Street Account.