Dallas, USA – Southwest Airlines Co. (NYSE: LUV) reported its first quarter 2025 financial results, highlighting a net loss of $149 million, or $0.26 loss per diluted share.
Despite the loss, the airline achieved record first-quarter operating revenues of $6.4 billion, fueled by all-time record yields.
“While the broader economic environment has been dynamic, we remain focused on executing our transformational plan,” stated Bob Jordan, President & CEO.
The company is implementing initiatives focused on cost reduction and according to the announcement, Southwest states that they are on track to achieve the increased cost reduction plan targets.
To improve financial performance, Southwest will introduce basic economy fares and bag fees for most fare products starting next month.
They also plan to begin selling assigned and extra legroom seats in the third quarter of 2025.
These moves signal a shift away from Southwest’s traditional “no frills” approach.
Looking ahead, Southwest remains confident in achieving targeted improvements. Despite this confidence, the company is reducing capacity in the second half of 2025. The Company President, Bob Jordan, stated “These incremental schedule adjustments are in progress, and based on current estimates, we now expect our full year 2025 capacity to be up roughly one %.” The company expects full-year 2025 capacity to be up roughly 1%, year-over-year, and reaffirms targets of $1.8 billion and $4.3 billion.
Southwest ended the first quarter of 2025 with $9.3 billion in liquidity. They also plan to complete the repurchase of the remaining $1.5 billion by the end of July 2025.
The company also discontinued its fuel hedging program. For those looking to find out more, the airline will discuss its Q1 results on a conference call at 12:30 p.m. Eastern Time on April 24th.
To listen to a live broadcast of the conference call, please go to
https://www.southwestairlinesinvestorrelations.com.
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