Core Viewpoint - Southwest Airlines reported disappointing second-quarter 2025 results, with both earnings and revenues falling short of expectations, leading to a decline in share price and underperformance compared to the S&P 500 [2][3]. Financial Performance - Quarterly earnings were 43 cents, missing the Zacks Consensus Estimate of 51 cents and representing a 25.9% decline year over year [3]. - Revenues totaled $7.24 billion, below the Zacks Consensus Estimate of $7.29 billion, and decreased by 1.5% year over year [3]. - Passenger revenues, which made up 91.5% of total revenues, fell 1.3% year over year to $6.62 billion [3]. Operating Statistics - Revenue passenger miles decreased by 3.5% year over year to 36.88 billion [4]. - Available seat miles (ASMs) increased by 1.6% year over year to 46.99 billion, resulting in a load factor drop of 4.1 percentage points to 78.5% [4]. - Passenger revenue per available seat mile (PRASM) fell by 2.8% year over year to 14.10 cents [4]. - Revenue per available seat mile (RASM) decreased by 3.1% to 15.41 cents [5]. Operating Expenses & Income - Operating income for the quarter was $225 million, down from $398 million in the same quarter last year [6]. - Adjusted operating income was $245 million, compared to $405 million in the prior year [6]. - Total adjusted operating expenses increased by 6.4% [6]. Fuel Costs - Fuel cost per gallon fell by 15.9% to $2.32 [7]. Liquidity - Cash and cash equivalents at the end of the second quarter were $3.47 billion, down from $8.13 billion at the end of the previous quarter [8]. - Long-term debt remained flat at $4.08 billion [8]. - The company generated $401 million in cash from operating activities during the quarter [8]. Shareholder Returns - Southwest returned $1.6 billion to shareholders, including $103 million in dividends and $1.5 billion in share repurchases [9][10]. - The company completed a $2.5 billion share repurchase authorization and has a new $2.0 billion authorization expected to be completed over two years [10]. Outlook - For the third quarter of 2025, unit revenues are expected to range from down 2% to up 2% year over year, with flat capacity [11]. - Economic fuel costs are projected to be between $2.40 and $2.50 per gallon [12]. - The company anticipates a 3.5% to 5.5% increase in CASM-X year over year due to inflationary pressures [13]. - Capital spending for 2025 is expected to be between $2.5 billion and $3.0 billion [14]. - Full-year EBIT guidance for 2025 is reaffirmed at an incremental contribution target of $1.8 billion [15]. Market Position - The consensus estimate for Southwest has shifted downward by 106.21% recently, indicating a negative trend in investor sentiment [16]. - The stock has an average Growth Score of C, a Momentum Score of F, and a Value Score of A, placing it in the top 20% for value investors [17]. - The overall Zacks Rank for Southwest is 3 (Hold), suggesting an expectation of in-line returns in the coming months [18].

Core Viewpoint - Allegiant Travel Company reported a significant increase in passenger traffic and operational metrics for April 2025 compared to April 2024, indicating a strong recovery and growth in demand for air travel [1][2]. Passenger Traffic Results - Scheduled service passengers increased to 1,526,823 in April 2025 from 1,328,010 in April 2024, reflecting a growth of 15.0% [2]. - Revenue passenger miles rose by 17.4%, reaching 1,447,242 thousand miles in April 2025 compared to 1,232,419 thousand miles in April 2024 [2]. - Available seat miles increased by 20.5%, totaling 1,802,989 thousand miles in April 2025, up from 1,495,665 thousand miles in April 2024 [2]. - The load factor for scheduled service was 82.4%, a decrease of 2.1 percentage points from 80.3% in April 2024 [2]. - Departures decreased by 18.4%, with 9,296 flights in April 2025 compared to 11,010 in April 2024 [2]. - The average stage length was 911 miles, a slight increase of 2.5% from 934 miles in April 2024 [2]. Total System Results - Total system passengers were 1,344,077 in April 2025, down from 1,543,689 in April 2024, marking a decrease of 14.9% [2]. - Total system available seat miles decreased by 20.8%, totaling 1,543,609 thousand miles in April 2025 compared to 1,865,323 thousand miles in April 2024 [2]. - Total system departures also fell by 18.6%, with 9,637 flights in April 2025 compared to 11,433 in April 2024 [2]. - The average stage length for the total system was 907 miles, an increase of 2.6% from 930 miles in April 2024 [2]. Financial Metrics - The estimated average fuel cost per gallon for the system in April 2025 was $2.51 [3].