Southwest Airlines Co. reported its financial results for the first quarter of 2025, revealing a total operating revenue of $6.4 billion, a 1.6% increase from $6.3 billion in the same period last year. The airline's passenger revenue rose to $5.8 billion, up 1.7% from $5.7 billion in the prior year, driven by a 9.9% increase in yield, despite a decline in load factor. The company recorded a net loss of $149 million, or $0.26 per share, an improvement from a net loss of $231 million, or $0.39 per share, in the first quarter of 2024.
Operating expenses for the quarter decreased by 1.1% to $6.7 billion, primarily due to a significant reduction in fuel costs, which fell by 18.4% year-over-year. However, salaries, wages, and benefits increased by 5.5%, reflecting the impact of recent labor agreements and a one-time severance cost associated with a workforce reduction of approximately 1,750 positions, aimed at enhancing operational efficiency. The company anticipates annual savings of approximately $210 million from this workforce reduction.
In terms of operational metrics, Southwest Airlines carried 29.99 million revenue passengers, a decrease of 8.8% compared to the previous year. The airline's available seat miles (ASMs) also fell by 1.9%, while the average passenger fare increased by 11.5% to $193.75. The company ended the quarter with 800 aircraft in its fleet, having received 11 new Boeing 737-8 aircraft and retired 14 older models.
Looking ahead, Southwest Airlines has provided guidance for the second quarter of 2025, expecting revenue per available seat mile (RASM) to be flat to down 4% year-over-year, with available seat miles projected to increase by 1% to 2%. The company is also focused on implementing new initiatives, including changes to its loyalty program and the introduction of checked bag fees for certain fare types, which are expected to enhance revenue generation. Despite the current macroeconomic uncertainties, Southwest remains committed to its financial targets and operational improvements.
About SOUTHWEST AIRLINES CO
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