Compared to Estimates, Southwest (LUV) Q2 Earnings: A Look at Key Metrics

Core Insights - Southwest Airlines reported a revenue of $7.24 billion for the quarter ended June 2025, reflecting a decrease of 1.5% year-over-year and a surprise of -0.7% compared to the Zacks Consensus Estimate of $7.3 billion [1] - The earnings per share (EPS) for the quarter was $0.43, down from $0.58 in the same quarter last year, resulting in an EPS surprise of -15.69% against the consensus estimate of $0.51 [1] Financial Performance Metrics - Load factor was reported at 78.5%, below the average estimate of 81.3% from five analysts [4] - Revenue passenger miles (RPMs) totaled 36.89 billion, compared to the average estimate of 37.9 billion from four analysts [4] - Available seat miles (ASMs) were 47 billion, slightly above the average estimate of 46.86 billion [4] - Passenger revenue per ASM (PRASM) was 14.1 cents, below the average estimate of 14.19 cents [4] - Cost per available seat mile (CASM), excluding fuel and oil expenses, was 12.04 cents, slightly above the average estimate of 12.01 cents [4] - Revenue per available seat mile (RASM) was 15.41 cents, below the average estimate of 15.59 cents [4] - Fuel costs per gallon were $2.32, slightly lower than the average estimate of $2.34 [4] - Fuel consumed was 570 million gallons, slightly above the average estimate of 569.05 million gallons [4] - Operating revenues from passenger services were $6.63 billion, in line with the average estimate of $6.6 billion, representing a year-over-year decline of 1.3% [4] - Operating revenues from other sources were $573 million, below the average estimate of $647.94 million, reflecting a year-over-year decline of 4% [4] - Operating revenues from freight were $44 million, below the average estimate of $48.31 million, indicating a year-over-year decline of 2.2% [4] Stock Performance - Shares of Southwest Airlines have returned +16.7% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]