Southwest Airlines Q3 net income ‘better-than-anticipated’, expects strong Q4 

Southwest Airlines has reported a net income of $54 million for the third quarter of 2025, delivering a “profitable quarter” and performing “better-than-anticipated”. 

In its financial report released on October 22, 2025, Southwest noted that its Q3 unit revenues, costs, and net income all “exceeded its expectations”. 

The company said that it saw a significant increase in demand starting in early July 2025, which continued throughout Q3 2025. According to Southwest, this rise in demand “drove record third quarter revenue performance”. 

“We continue to make substantial progress as we execute the most significant transformation in Southwest Airlines’ history,” said Bob Jordan, CEO of the airline. “We quickly implemented many new product attributes and enhancements, and the results are showing.” 

The airline achieved a record operating revenue of $6.9 billion in the third quarter, a 1.1% increase from the previous year, with passenger revenue hitting $6.3 billion. Southwest reported returning $439 million to shareholders and confirmed its full-year 2025 EBIT guidance of $600 million to $800 million. 

In the Q3 of 2025, Southwest Airlines’ capacity increased by 0.8% year-over-year, surpassing expectations due to delays in Boeing 737-700 retrofits. The airline added eight Boeing 737-8 aircraft and retired 16, finishing the quarter with a total of 802 aircraft. 

The airline said it anticipates achieving an “all-time quarterly record operating revenues” in the fourth quarter of 2025.  

The company expects the unit revenues for the fourth quarter of 2025 to rise by 1 to 3% compared to the fourth quarter of 2024, excluding special items, with capacity increasing by about 6% year-over-year. 

For the full year 2025, the carrier’s capacity is projected to rise by about 1.5%. This change is anticipated to optimize revenue potential during the holiday travel season. 

The airline expects a total of 53 deliveries of Boeing 737-8 in 2025, an increase from its prior estimate of 47, and it plans to retire 55 aircraft, which includes five Boeing 737-8 jets. The company projects its capital spending for 2025 to be between $2.5 and $3 billion. The post Southwest Airlines Q3 net income ‘better-than-anticipated’, expects strong Q4  appeared first on AeroTime.

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