Shares of Southwest Airways Co. (NYSE: LUV) stayed inexperienced on Wednesday. The inventory has dropped 10% over the previous three months. The airline is scheduled to report its earnings outcomes for the third quarter of 2025 on Thursday, October 23, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $6.93 billion for Southwest within the third quarter of 2025, which suggests a slight acquire from $6.87 billion reported within the third quarter of 2024. Within the second quarter of 2025, whole working revenues dipped 1.5% year-over-year to $7.2 billion.
Earnings
Analysts are forecasting a lack of $0.04 per share for LUV in Q3 2025, which compares to adjusted earnings per share of $0.15 reported within the year-ago quarter. In Q2 2025, adjusted EPS declined almost 26% YoY to $0.43.
Factors to notice
Southwest could be anticipated to learn from a stabilization and enchancment in journey demand, which is anticipated to proceed by means of the latter half of the 12 months. As well as, the roll-out of assorted initiatives resembling free checked luggage, seat choice, and bank card advantages are anticipated to yield advantages. The corporate’s efforts in community enlargement and flight partnerships are additionally anticipated to drive development.
LUV expects unit revenues for Q3 2025 to vary between down 2% to up 2% and capability to be roughly flat YoY, assuming modest sequential enchancment in demand. Unit revenues in Q2 had been down 3.1% whereas capability was up 1.6% YoY.
Final quarter, Southwest’s non-fuel unit prices had been up 4.7% YoY. The airline expects non-fuel unit prices for the third quarter to extend 3.5-5.5% YoY, primarily resulting from inflationary pressures and different bills. Gasoline price per gallon is anticipated to be $2.40-2.50.
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