Travel Rebound in July Fuels Southwest’s $6.9B Q3 Revenue

Southwest Airlines has reported strong Q3 2025 results, delivering a record operating revenue of $6.9 billion and a profit of $54 million (or $0.10 per diluted share), beating analyst expectations that had anticipated a loss.

The results underscore a sharp rebound in travel demand that gained momentum in July and is expected to stay strong through the rest of the year.

Recent revenue initiatives, including the launch of checked-bag fees and premium seat assignments with extra legroom, contributed to stronger results and signal a shift toward a more diversified revenue model.

Looking ahead, the airline expects continued demand strength in Q4 2025 and reaffirmed its full-year earnings before interest and taxes (EBIT) guidance between $600 million and $800 million.

Executives emphasized that ongoing business transformation efforts, such as introducing new fare structures and implementing service upgrades, are key drivers of future margin expansion and competitive advantage.

Additionally, the company returned $439 million to shareholders through share buybacks and dividends in Q3 2025.

In September 2025, Southwest announced plans to expand into long-haul international flights, targeting transatlantic routes to Europe.

Photo by Lukas Souza on Unsplash