Southwest Airlines Reports First Quarter 2025 Net Loss of $149 Million or $0.26 per Diluted Share
- Joe Breitfeller
- Apr 23
- 3 min read
Updated: Apr 25
Southwest Airlines has reported a first quarter 2025 net loss of $149 million or $0.26 per diluted share on a year-over-year increase in revenue of 1.6 percent to $6.4 billion. At March 31, 2025, the carrier had liquidity totaling $9.3 billion.
On Wednesday (April 23, 2025), Southwest Airlines reported their first quarter financial results for the period ending March 31, 2025. The carrier reports a first quarter net loss of $149 million or $0.26 per diluted share and a 1.6 percent year-over-year increase in revenue to $6.4 billion. Southwest’s first quarter revenue per available seat mile (RASM) increased 3.5 percent versus Q1 2024 to 15.51 cents, while cost per available seat mile (CASM) increased 0.9 percent to 16.05 cents. Costs excluding fuel (CASM-ex) increased year-over-year by 6.2 percent to 13.04 cents. At March 31, 2025, Southwest had $8.3 billion in cash, cash equivalents and short-term investments, as well as a fully available revolving credit line of $1.0 billion.
In Wednesday’s announcement, Southwest Airlines’ CEO and Vic Chairman of the Board of Directors, Bob Jordan, said,
“While the broader economic environment has been dynamic, we remain focused on executing our transformational plan. On costs, we beat our previously adjusted guidance and are on track to achieve the increased cost reduction plan targets announced last month. We ran a stellar operation in first quarter, leading the industry in on time performance and improving on almost every operating metric, year-over-year. We are seeing positive results on recently rolled out initiatives, including the launch of Expedia as a new distribution channel and the further optimization of our loyalty program. We expect to introduce basic economy and bag fees for most fare products next month and remain on track to begin selling assigned and extra legroom seats in third quarter 2025 for operation beginning in first quarter of next year.
“We are evolving at Southwest Airlines, more than ever before. The initiatives we have laid out are expected to improve our commercial offering and financial performance, providing value for both Customers and Shareholders. We remain well-positioned with and committed to a strong and efficient investment-grade balance sheet and have a valuable contractual order book with Boeing that offers flexibility. Looking ahead, we are confident in the initiatives we have outlined and the value we expect them to produce. We are committed to executing on these plans while controlling what we can control. To that end, we are reducing capacity in the second half of this year. These incremental schedule adjustments are in progress, and based on current estimates, we now expect our full year 2025 capacity to be up roughly one percent, year-over-year. As always, I am proud of our People, their resiliency, and operational performance and unique Southwest Hospitality they are delivering for our Customers.”
During the first quarter, Southwest received the necessary approvals and certifications to begin extra legroom seating retrofits on their Boeing 737-8 MAX and 737-800NG aircraft. The company also received 11 new Boeing 737-8 MAX jets during the period, and retired 12 Boeing 737-700s and two 737-800s, ending the period with 800 aircraft.
Founded in 1971, Dallas-based Southwest Airlines (NYSE: LUV) has distinguished itself by offering exemplary customer service delivered by over 72,000 team members at 117 airports across 11 countries. Southwest offers a robust point-to-point network with a strong presence across leisure and business markets. During peak travel seasons, the airline operates more than 4,000 daily departures, and in 2024, Southwest carried over 140 million customers. Southwest also continues to develop tangible steps toward achieving carbon neutrality by 2050, including offering customers the opportunity to help the airline offset carbon emissions.
Source: Southwest Airlines
