You might soon be able to take a Southwest Airlines flight to Europe. On Tuesday, the budget airline asked the Department of Transportation for permission to fly to any country with which the US has an Open Skies agreement.The State Department lists 123 such countries, representing most of the world. Meanwhile, Southwest currently serves 10 countries outside the US. Other than Mexico, they are all in Central America or the Caribbean.Open Skies agreements allow airlines to operate between two countries w ...

DALLAS, May 13, 2025 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) Board of Directors declared a quarterly cash dividend of $.18 per share to Shareholders of record at the close of business on June 18, 2025, on all shares then issued and outstanding. The quarterly dividend will be paid on July 9, 2025.SW-DSRSOURCE Southwest Airlines Co. ...

Core Viewpoint - Southwest Airlines is facing significant challenges due to potential economic downturns, leading to a sharp decline in stock price and the withdrawal of crucial profitability guidance for 2025 and 2026 [1][6]. Company Performance - In the first quarter of 2024, Southwest Airlines reported a revenue increase of less than 2% year over year, totaling just over $6.4 billion, which was in line with analyst expectations [4]. - The company narrowed its bottom-line loss to $77 million, compared to a shortfall of $218 million in the first quarter of 2024. The non-GAAP net loss improved to $0.13 per share from $0.36, beating the consensus projection of $0.17 [5]. Industry Context - The airline industry is highly sensitive to economic conditions, particularly discretionary consumer spending, which tends to decline during recessions [2][4]. - A study by Bank of America Institute indicated a 2.5% year-over-year decrease in weekly consumer spending on lodging as of March 22, suggesting a waning post-pandemic travel demand [8]. - The potential for a recession could exacerbate the already challenging environment for the airline and tourism industries, making recovery difficult for companies like Southwest Airlines [9].

Southwest Airlines Today During earnings season, airlines have cited some worries about lower future spending on travel, a typical reaction as consumers become more budget-conscious in the volatility and uncertainty currently present in the financial markets. The latest comments came from the CEO of Southwest Airlines Co. NYSE: LUV, who admitted that the entire industry is in recession already, but that was more of a strategic comment than a regretful one, it turns out. Confidence Remains in Southwest Airli ...

Core Insights - Southwest Airlines is launching new fare products and benefits aimed at enhancing customer loyalty and providing a broader range of travel experiences [1][7] Fare Products - The new fare products include Choice Extra, Choice Preferred, and Choice, which will replace the existing Business Select, Anytime, and Wanna Get Away Plus fares [3] - These fare products will be available for booking in the third quarter of 2025, coinciding with the introduction of assigned and premium seating [3] Customer Benefits - Southwest is enhancing benefits for Rapid Rewards Credit Cardmembers, allowing them to select seats regardless of fare type, receive earlier boarding, and have their first checked bag free for up to eight additional passengers on the same reservation [4][6] - Current benefits for Cardmembers will continue, including discounts on inflight purchases and a one-time boost of 10,000 Companion Pass qualifying points each calendar year [5][9] Tier Member Enhancements - A-List and A-List Preferred Tier Members will receive additional benefits such as preferred seating, checked bags for additional passengers, and earlier boarding [6] - All checked bag benefits for Tier Members and Credit Cardmembers will begin on May 28, with seating and boarding benefits rolling out with the new assigned seating [6] Company Overview - Southwest Airlines operates one of the most admired airlines globally, serving 117 airports across 11 countries and carrying more air travelers within the U.S. than any other airline [10][11] - The company emphasizes its commitment to low-cost air travel and customer service, with a loyal customer base of over 140 million in 2024 [10]

Key Takeaways Airlines are struggling due to low domestic and international travel demand and low consumer confidence. The lower demand is due to a potential slowdown in the economy triggered by Trump's tariffs. However, investors shouldn't completely write off top-ranked airline ETF JETS from their holdingsThe airline industry is facing growing turbulence as the ongoing global trade war creates a cloud of uncertainty over passenger demand and revenue projections. This week, Southwest Airlines (LUV) , Ame ...

Financial Data and Key Metrics Changes - The operating revenue reached a quarterly record of $6.4 billion, with RASM increasing by 3.5% on all-time record yields [11] - CASM-X growth was 4.6%, significantly better than the original guidance of 7-9% and below the revised guidance of approximately 6% [11][31] - The company did not reiterate its full-year EBIT guidance for 2025 and 2026 due to macroeconomic uncertainty but reaffirmed targets of $1.8 billion for 2025 and $4.3 billion for 2026 from initiatives [14][12] Business Line Data and Key Metrics Changes - The company implemented several initiatives, including enhancements to the Rapid Rewards program and the launch of Expedia, which exceeded expectations [8][22] - The first quarter saw a completion factor of 98.6%, the best in 12 years, and the company led the industry in on-time performance [20] - The company plans to introduce a basic economy product and new fee structures, including check bag fees, in the upcoming months [10][28] Market Data and Key Metrics Changes - The company experienced a weakening demand trend, particularly in leisure travel, which continued into the second quarter [12][21] - Corporate travel remained stable but softer, with the largest impact coming from lower leisure travel demand [21] - The company is proactively reducing capacity in the second half of the year, expecting a full-year capacity growth of only 1% year-over-year [16][17] Company Strategy and Development Direction - The company announced a plan to transform its revenue strategy and improve cost performance, focusing on executing its strategic plan regardless of the economic environment [7] - The company is committed to cost discipline and has seen positive results from its cost reduction initiatives [15][31] - The company aims to close its RASM gap to the industry through improved network connectivity and marketing distribution initiatives [22][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of initiatives despite the current macroeconomic uncertainty, emphasizing the importance of cost discipline [14][39] - The company acknowledged the difficulty in forecasting due to recent demand trends but remains optimistic about the potential benefits from its initiatives [12][66] - Management highlighted the unique position of the company in the industry, with transformative initiatives expected to provide significant benefits relative to peers [14][41] Other Important Information - The company has discontinued its fuel hedging program and plans to be opportunistic in unwinding existing positions based on market conditions [34] - The company is committed to returning value to shareholders, having completed $1 billion of a previously authorized $2.5 billion share repurchase program [37] - The company is focused on maintaining a strong investment-grade balance sheet while investing in its business [36] Q&A Session Summary Question: Feedback from customer polling on recent initiatives - Management stated that ongoing surveys show a generally satisfied customer base, with no evidence of "book away" behavior as customers adapt to new policies [46][50] Question: Liquidity targets in light of debt paydown and buybacks - Management confirmed a target of around $4 billion in cash, emphasizing the importance of incremental EBIT from initiatives for balance sheet flexibility [53][55] Question: Confidence in achieving revenue initiative targets - Management expressed confidence in the timing and financial benefits of revenue initiatives, noting that while there are sensitivities to the macro environment, the impact is smaller compared to the core business [59][66] Question: Load factor expectations and demand destruction - Management explained that the load factor was impacted by macroeconomic weakness, but they expect normalization as they adjust pricing strategies and capacity [69][73] Question: Capacity adjustments in response to pricing discipline - Management acknowledged the need to fill load factors and plans to stimulate off-peak demand through new initiatives and connectivity strategies [78][81] Question: Expansion into new distribution channels like Expedia - Management highlighted the positive performance of Expedia, which has brought in new customers and is seen as a cost-effective distribution channel [101][102] Question: Future initiatives and customer demands - Management indicated that they are continuously looking to enhance their value proposition and will introduce new initiatives to meet customer demands [120][126]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File No. 1-7259 SOUTHWEST AIRLINES CO. (Exact name of registrant as specified in its charter) | Texas | 74-1563240 | | --- | - ...

Financial Data and Key Metrics Changes - The operating revenue reached a quarterly record of $6.4 billion, with RASM increasing by 3.5% on all-time record yields [11] - CASM-X growth was 4.6%, significantly better than the original guidance of 7-9% and below the revised guidance of approximately 6% [11][31] - The company is not reiterating its full-year EBIT guidance for 2025 and 2026 due to macroeconomic uncertainty but reaffirms targets of $1.8 billion for 2025 and $4.3 billion for 2026 from initiatives [13][14] Business Line Data and Key Metrics Changes - The company implemented several initiatives, including enhancements to the Rapid Rewards program and the launch of Expedia, which exceeded expectations [8][22] - The first quarter saw a completion factor of 98.6%, the best in 12 years, and the company ranked number one in on-time performance [20] - The company plans to introduce a basic economy product and new fee structures, including check bag fees, in the upcoming months [10][28] Market Data and Key Metrics Changes - The company experienced a weakening demand trend, particularly in leisure travel, which continued into the second quarter [12][21] - Corporate travel has remained stable but softer, with the largest impact coming from lower leisure travel demand [21] - The company is proactively reducing capacity in the second half of the year, expecting a full-year capacity growth of only 1% year-over-year [16][17] Company Strategy and Development Direction - The company announced a plan to transform its revenue strategy and improve cost performance, focusing on executing its strategic plan regardless of the economic environment [7] - The company is committed to cost discipline and has seen positive results from its cost reduction initiatives [15][31] - The company aims to close its RASM gap to the industry through improved network connectivity and marketing distribution initiatives [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of initiatives despite the current macroeconomic uncertainty, emphasizing the importance of cost discipline [14][39] - The company is optimistic about the performance of its new initiatives, which are expected to provide material incremental EBIT in 2025 and beyond [41] - Management acknowledged the challenges posed by the macroeconomic environment but highlighted the company's strong investment-grade balance sheet and flexibility [18][41] Other Important Information - The company has discontinued its fuel hedging program and plans to be opportunistic in unwinding existing positions based on market conditions [34] - The company is committed to returning value to shareholders, having completed $1 billion of a previously authorized $2.5 billion share repurchase program [37] Q&A Session Summary Question: Feedback from customer polling on recent initiatives - Management stated that ongoing surveys show a generally satisfied customer base, with no evidence of "book away" behavior as customers adapt to new policies [46][50] Question: Liquidity targets in light of debt paydown and buybacks - Management confirmed a target of around $4 billion in cash, emphasizing the importance of incremental EBIT from initiatives for balance sheet flexibility [53][55] Question: Confidence in achieving revenue initiative targets - Management expressed confidence in the timing and financial benefits of revenue initiatives, noting that while there are sensitivities to the macro environment, the impact is smaller compared to the core business [59][62] Question: Load factor expectations and demand destruction - Management explained that the load factor decreased due to macroeconomic weakness, but they expect normalization as they adjust pricing strategies and implement new initiatives [69][73] Question: Capacity adjustments in response to pricing discipline - Management acknowledged the need to fill load factors and plans to stimulate off-peak demand through new pricing strategies and connectivity initiatives [78][81] Question: Expansion into new distribution channels - Management highlighted the successful launch of Expedia, which has attracted new customers and is expected to enhance overall performance [100][102] Question: Future initiatives and customer demands - Management indicated that they will continue to add initiatives to strengthen the value proposition for customers, including enhancements to the loyalty program [120][126]

Southwest Airlines Co. (LUV) reported first-quarter 2025 loss of 13 cents per share, which was wider than the Zacks Consensus Estimate of 18 cents. In the year-ago quarter, the company had incurred a loss of 36 cents per share.Revenues of $6.42 billion beat the Zacks Consensus Estimate of $6.40 billion. The top line, however, improved 1.6% year over year on the back of the yield improvements from revenue management actions and capacity moderation. However, LUV witnesses weaker demand throughout the quarter, ...