Southwest Airlines Co.
Southwest Airlines Co. Q4 FY2025 earnings call
January 29, 2026 · fiscal period ended 2025-12
EPS · actual vs est
Revenue · actual vs est
Summary
Generated 2026-01-29
Management highlights
Bob Jordan mentioned the fourth quarter capped a year of transformation, full year EBIT above guide, operating revenues records, and being #1 in on-time performance, etc. Key initiatives in 2025 included changing product offering, optimizing Rapid Rewards, amending credit card agreement, launching free WiFi, expanding online presence, outperforming cost reduction target, adding airline partners, etc. Andrew Watterson talked about network capacity growth, efficiency initiatives, RASM expectations for Q1, and successful launch of assigned seating and extra legroom. Tom Doxey discussed strong quarter EBIT, cost performance, 2026 EPS guidance, fleet plans, cash position, etc.
Segment performance
Fourth quarter operating revenues were $7.4 billion, full year operating revenues were $28 billion, both quarterly and annual records. Full year EBIT was $574 million, above prior guide of $500 million. Fourth quarter RASM was down slightly at negative 0.2% year-over-year. Q1 RASM expected to increase by at least 9.5% year-over-year. CASM-X in fourth quarter up 0.8% year-over-year, expected to increase approximately 3.5% year-over-year in 2026 including impact from extra legroom seating.
Guidance
For full year 2026, guiding adjusted EPS of at least $4, materially higher than 2025 adjusted EPS of $0.93. For first quarter 2026, guiding adjusted EPS of at least $0.45 per share. Q1 capacity expected to grow between 1% and 2% year-over-year. CASM-X projected to increase approximately 3.5% year-over-year in 2026 including impact from extra legroom seating.
Q&A highlights
Q: Catherine O'Brien asked about upside to base case on seat products, RASM comparison and CASM driver.
A: Bob Jordan and Tom Doxey responded.
Q: Conor Cunningham asked about load factor decline and ATL decline.
A: Andrew Watterson and Tom Doxey responded.
Q: Jamie Baker asked about early bird bookings and aircraft RFPs.
A: Robert Jordan and Andrew Watterson responded.
Q: Scott Group asked about ancillary and RASM comp.
A: Robert Jordan and Tom Doxey responded.
Q: Michael Linenberg asked about CapEx and revenue segmentation.
A: Tom Doxey and Andrew Watterson responded.
Q: John Godyn asked about RASM detail and growth.
A: Robert Jordan and Andrew Watterson responded.
Q: Duane Pfennigwerth asked about loyalty rev rec and receptivity.
A: Tom Doxey and Andrew Watterson responded.
Q: Thomas Fitzgerald asked about extra legroom fee and fuel.
A: Andrew Watterson and Tom Doxey responded.
Q: Atul Maheswari asked about revenue GDP and EPS macro.
A: Robert Jordan responded.
Q: Savanthi Syth asked about CASM-X progression and corporate revenue.
A: Tom Doxey and Andrew Watterson responded.
Q: Andrew Didora asked about RASM and load factor.
A: Robert Jordan and Andrew Watterson responded.
Q: Ravi Shanker asked about Jan 27 changes.
A: Andrew Watterson responded.
Q: Sheila Kahyaoglu asked about product segmentation and EPS.
A: Robert Jordan and Andrew Watterson responded.
Q: David Vernon asked about demand elasticity.
A: Robert Jordan responded.
Q: Daniel McKenzie asked about buy-up revenue percent and corporate CapEx.
A: Andrew Watterson responded.
Q: Chris Wetherbee asked about gate buy-ups and turn times.
A: Andrew Watterson and Robert Jordan responded
Key numbers
Reported versus consensus
Earnings calendar feed
| Metric | Reported | Consensus | Delta | Prior year |
|---|---|---|---|---|
| EPS | — | — | — | — |
| Revenue | — | — | — | — |
Transcript
January 29, 2026Full transcript unavailable for redistribution
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