Overview

* Southwest Q3 2025 rev reaches record $6.9 bln, slightly missing analyst expectations, per LSEG data

* Adjusted EPS for Q3 2025 beats analyst expectations

* Company returns $439 mln to shareholders via dividends and share repurchases

Outlook

* Southwest ( LUV ) reaffirms 2025 EBIT guidance of $600 mln to $800 mln

* Expect all-time quarterly record operating revenues in fourth quarter 2025

* Company expects Q4 2025 RASM to rise 1% to 3% year-over-year

* Southwest ( LUV ) targets 2026 EBIT contribution from initiatives at $4.3 bln

Result Drivers

* DEMAND IMPROVEMENT - Co cites a positive inflection in demand from early July, sustaining momentum throughout Q3

* STRATEGIC INITIATIVES - Successful execution of initiatives drove record Q3 revenue performance

* LOYALTY REVENUE - Loyalty revenue up 7% year-over-year, contributing to revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $6.90 $6.92

Revenue bln bln (14

Analysts

)

Q3 Beat $0.11 -$0.03

Adjusted (15

EPS Analysts

)

Q3 EPS $0.10

Q3 $6.91

Operatin bln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 11 "hold" and 6 "sell" or "strong sell"

* The average consensus recommendation for the airlines peer group is "buy."

* Wall Street's median 12-month price target for Southwest Airlines Co ( LUV ) is $34.00, about 2% below its October 21 closing price of $34.68

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)