Southwest Posts Record 2025 Revenue, Prepares for 2026 Gains

Southwest Airlines has reported robust results for both the fourth quarter and the full year of 2025.

Fourth quarter 2025 financial results

Southwest posted a record operating revenue of $7.4 billion, up from $6.9 billion in the same period of 2024.

Net income for the quarter reached $323 million, reflecting strong operational performance, compared to $261 million in the fourth quarter of 2024.

Diluted earnings per share climbed to $0.61, up from $0.42 a year earlier, underscoring the airline’s improved profitability.

Full year 2025 financial results

Southwest set new benchmarks with $28.1 billion in operating revenue, surpassing 2024’s $27.5 billion.

Annual net income totaled $441 million, slightly down from $465 million the previous year, while earnings per diluted share increased modestly to $0.79 from $0.76.

Strategic initiatives and key milestones of 2025

2025 marked several transformative changes for Southwest.

• Assigned and extra-legroom seating was implemented, signaling the airline’s shift toward a more structured, revenue-generating cabin layout starting January 27, 2026.
• The co-brand credit card agreement with Chase was updated to deliver enhanced benefits.
• The airline expanded its online reach via partnerships with Priceline and Expedia.
• Loyalty program members gained access to free WiFi through a partnership with T-Mobile.
• Southwest returned $2.9 billion to shareholders through dividends and share repurchases.

2026 outlook and growth expectations

Looking ahead, Southwest anticipates adjusted earnings per share of at least $4.00 for 2026.

The airline plans to expand seat capacity by 2–3 percent, reflecting confidence in growing travel demand.

For the first quarter of 2026, management expects unit revenue to rise by at least 9.5 percent year over year, driven by higher passenger volumes, increased premium seating revenue, and continued focus on operational efficiency.

Photo by Lukas Souza on Unsplash