Southwest Airlines (LUV) earnings Q3 2025

Southwest Airlines on Wednesday posted a surprise profit for the third quarter and said it expects to generate record sales within the last three months of the 12 months thanks to higher travel demand and better fares.

The carrier said it expects unit revenue to rise between 1% and three% for the fourth quarter, with capability up 6% over the identical period last 12 months.

“This guidance range assumes demand strength stays at current levels through the top of the quarter,” Southwest said.

Here’s how Southwest performed within the period ended September 30 compared with Wall Street expectations, based on consensus estimates from LSEG:

• Earnings per share: 11 cents adjusted vs. lack of 3 cents expected
• Revenue: $6.95 billion vs. $6.92 billion expected

In July, Southwest joined other airlines in cutting its 2025 profit forecast. The Dallas carrier said it expected full-year earnings before taxes of $600 million to $800 million, down from an earlier forecast of $1.7 billion. It reaffirmed that earnings outlook on Wednesday.

The carrier has been working to higher compete with rivals and increase sales, abandoning longtime policies like open seating and two free checked bags for every traveler.

Southwest CFO Tom Doxey told CNBC in an interview that increased sales from selling seat assignments would show up in the primary quarter, when the primary flights without open seating begin.

Southwest’s third-quarter profit fell greater than 19% 12 months over 12 months to $54 million from $67 million. On a per-share basis, Southwest’s earnings fell to 10 cents from 11 cents a 12 months earlier.

Adjusting for one-time items, Southwest reported $58 million in earnings for the third-quarter, or 11 cents a share. 

Revenue rose 1% to $6.95 billion from the year-earlier period.