- Southwest Airlines reported adjusted earnings per share (EPS) of 43 cents, missing the estimate of 53 cents.
- The company’s operating revenue was $7.24 billion, below the anticipated $7.3 billion.
- Passenger revenue exceeded expectations at $6.63 billion, compared to the estimate of $6.61 billion.
- Freight revenue fell short, recording $44 million against the estimate of $47.3 million.
- Other revenue also missed the mark at $573 million, with projections at $634 million.
- Available seat miles were better than expected at 47.00 billion versus an estimate of 46.88 billion.
- Revenue passenger miles were 36.89 billion, under the forecasted 37.88 billion.
- The load factor was 78.5%, missing the expected 80.7%.
- Average passenger fare was higher at $186.65, surpassing the expected $176.83.
- Yield per passenger mile stood at 17.97 cents.
- The company received a mixed analysis with 6 buy ratings, 12 hold ratings, and 6 sell ratings.
Southwest Airlines Co on Smartkarma
Analyst coverage of Southwest Airlines Co on Smartkarma reveals a mix of insights on the company’s performance and strategic initiatives. Baptista Research, in their research report titled “Expansion into New Distribution Channels Like Expedia & Google Flights To Boost Customer Base & Revenue Over Time!”, highlights Southwest Airlines’ progress in strategic initiatives and challenges faced in the first quarter of 2025. The company’s revenue strategy transformation, with initiatives like enhancing the Rapid Rewards program and expanding distribution channels, led to record operating revenues driven by a 3.5% increase in revenue per available seat mile (RASM).
Another research report by Baptista Research, “Southwest Airlines Is Facing Turbulence: How Trump’s Tariffs Are Disrupting Its Turnaround Plan!“, signals a murkier outlook for the airline due to recent transformations and challenges. Southwest Airlines is undergoing significant changes, including the introduction of new fees and cost-cutting measures, to remain competitive in a challenging environment. These insights provide investors with a comprehensive view of the factors influencing Southwest Airlines’ performance and strategic direction.
A look at Southwest Airlines Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Southwest Airlines Co. shows a balanced long-term outlook based on the Smartkarma Smart Scores. With an overall score of 3 for Value, Dividend, Growth, and Resilience, and a slightly higher score of 4 for Momentum, the company appears to be on a steady path. The scores suggest that Southwest Airlines Co. is maintaining a stable position across multiple key factors, positioning itself well for potential growth opportunities while also demonstrating resilience.
As a domestic airline focusing on short-haul, high-frequency, point-to-point services in the United States, Southwest Airlines Co. is strategically positioned in the market. The Smart Scores indicate that the company is holding firm in terms of its value, dividend payments, growth prospects, and resilience to market challenges. Additionally, the higher Momentum score suggests that Southwest Airlines Co. may have some positive traction that could propel it forward in the coming years.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
