Southwest Airlines Reports Fourth Quarter 2025 Net Profit of $323 Million or $0.61 per Diluted Share

Southwest Airlines has reported a fourth quarter 2025 net profit of $323 million or $0.61 per diluted share on a year-over-year increase in revenue of 7.4 percent to $7.4 billion.  The carrier ended the period with $3.2 billion in cash and cash equivalents.

Southwest Airlines Boeing 737-700 - Courtesy Southwest Airlines

On Wednesday (January 28, 2025), Southwest Airlines reported their fourth quarter and full year financial results for the period ending December 31, 2025.  The carrier reported a fourth quarter 2025 net profit of $323 million or $0.61 per diluted share on a year-over-year increase in revenue of 7.4 percent to $7.4 billion.  Southwest’s fourth quarter revenue pr available seat mile (RASM) declined (0.2) percent versus the same period last year to 16.16 cents, while cost per available seat mile (CASM) was 15.31 cents, up slightly from 15.28 cents in Q4 2024.  Costs, excluding fuel, profit sharing and net special items (CASM-ex) increased year-over-year by 0.8 percent to 12.29 cents.  At December 31, 2025, Southwest had $3.2 billion in cash and cash equivalents, and a revolving credit line of $1.5 billion.

In Wednesday’s announcement, Southwest Airlines’ President & CEO, Bob Jordan, said,

“Southwest closed 2025 with strong momentum.  Last year we implemented the most ambitious transformation in Company history, including bag fees, basic economy fares, assigned and extra legroom seating, Rapid Rewards® program optimization, online distribution expansion, and free Wi-Fi for loyalty members.  We also outperformed our cost reduction goals, strengthened operational reliability through new technology, and returned $2.9 billion to our Shareholders through share repurchases and dividends.  That foundation positions us well for long‑term success and sets the stage for significant earnings growth this year.  Our performance reflects the extraordinary work of our People, who transformed the business while continuing to serve our Customers with unparalleled hospitality and operational excellence.  Their efforts enabled us to achieve $574 million in full year adjusted EBIT, and earned Southwest the top spot in The Wall Street Journal Best U.S. Airlines of 2025. I could not be more proud of what we accomplished.”

During the fourth quarter, Southwest received 19 Boeing 737-8 MAX aircraft and retired 18 aircraft (14 Boeing 737-700 aircraft and the sale of four Boeing 737-800 aircraft), and ended the year with a fleet of 803 aircraft.  For the full year 2025, the carrier received 55 Boeing 737-8 MAX aircraft and retired 55 aircraft (48 Boeing 737-700 aircraft and seven Boeing 737-800 aircraft, including the sale of five Boeing 737-800 aircraft).  For 2026, Southwest expects to take delivery of 66 Boeing 737-8 aircraft and plans to retire approximately 60 aircraft.

Southwest Airlines' Fourth Quarter and Full Year 2025 Financial Results - Courtesy Southwest Airlines

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