Southwest Airlines Reports Third Quarter 2025 Net Profit of $54 Million or $0.10 per Diluted Share

Southwest Airlines has reported a third quarter 2025 net profit of $54 million or $0.10 per diluted share on a year-over-year increase in revenue of 1.1 percent to $6.95 billion, a third quarter record. 

Southwest Airlines Boeing 737-8 MAX - Courtesy Southwest Airlines

On Wednesday (October 22, 2025), Southwest Airlines announced their third quarter financial results for the period ending September 30, 2025.  The carrier reported a third quarter net profit of $54 million or $0.10 per diluted share on a year-over-year increase in revenue of 1.1 percent to $6.95 billion, a third quarter record.  Southwest’s third quarter revenue per available seat mile (RASM) increased 0.4 percent compared to the same period last year to 15.25 cents, while cost per available seat mile (CASM) increased 0.4 percent to 15.17 cents.  Costs excluding fuel (CASM-ex) increased 2.3 percent compared to Q3 2024 to 12.25 cents.  Southwest ended the third quarter with $3.0 billion in cash and cash equivalents and short-term investments, and a fully available revolving credit line of $1.5 billion.

In Wednesday’s announcement, Southwest Airlines’ President, CEO and Vice Chairman, Bob Jordan, said,

“We continue to make substantial progress as we execute the most significant transformation in Southwest Airlines’ history.  We quickly implemented many new product attributes and enhancements, and the results are showing—we delivered a profitable quarter, with both unit revenues and unit costs performing better-than-anticipated, are reaffirming our full year 2025 EBIT guidance, and expect meaningful margin expansion in the fourth quarter.  We continue to deliver a strong operational performance and are currently in first place year-to-date based on our calculations of the Wall Street Journal’s airline rankings, an important indicator of success from the continued investment in our operation.  These significant accomplishments reflect the strength of our plan, the quality of our execution, and the dedication of our Team.

“We remain committed to meeting the evolving needs of our current and future Customers and delivering long-term value for our Shareholders.  We are pleased with our initiative performance, which will continue to ramp into the fourth quarter and next year; and while early, indicators for our new assigned and extra legroom seating products are in line with expectations.  We are encouraged by our momentum and confident in our direction.  Our People continue to lead the way, and I couldn't be more excited about 2026 and beyond.”

Southwest's Third Quarter 2025 Financial Results - Courtesy Southwest Airlines

During the third quarter, Southwest launched the sale of assigned and extra legroom seating, for travel beginning January 27, 2026.  The carrier also announced free Wi-Fi sponsored by T-Mobile for all Rapid Rewards® Members beginning October 24, 2025. 

Southwest also established a partnership with EVA Air that will connect itineraries between North America and Asia through shared gateway airports in Los Angeles (LAX), San Francisco (SFO), Seattle-Tacoma (SEA), and Chicago (ORD).  During the third quarter, Southwest also announced their intention to commence new service at McGhee Tyson Airport in Knoxville, Tennessee, Princess Juliana International Airport in St. Maarten, Charles M. Schulz Sonoma County Airport in Santa Rosa, California, and Ted Stevens Anchorage International Airport in Anchorage, Alaska in 2026.

In the third quarter, Southwest took delivery of eight Boeing 737-8 MAX airplanes, retired 15 737-700s, and sold one 737-800, ending the period with a fleet of 802 aircraft.  The Company has updated their fleet planning assumptions to 53 737-8 MAX deliveries in 2025, up from the prior estimate of 47, as Boeing Company continues to ramp up production.  Southwest continues to plan for 55 aircraft retirements in 2025, which includes the sale of one 737-800 in the third quarter, and the expected sale of four 737-800s in fourth quarter 2025.

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