What to expect when Southwest Airlines (LUV) reports Q2 2025 earnings results | AlphaStreet

Shares of Southwest Airways Co. (NYSE: LUV) rose over 1% on Monday. The inventory has gained 52% over the previous three months. The airline is slated to report its earnings outcomes for the second quarter of 2025 on Thursday, July 24, earlier than markets open. Right here’s a take a look at what to anticipate from the earnings report:

Income

Analysts are projecting income of $7.30 billion for Southwest within the second quarter of 2025. This alerts a slight dip from the $7.35 billion reported within the second quarter of 2024. Within the first quarter of 2025, working revenues elevated round 2% year-over-year to $6.42 billion.

Earnings

The consensus goal for earnings per share in Q2 2025 is $0.52, which compares to $0.58 reported in Q2 2024. In Q1 2025, the corporate reported adjusted lack of $0.13 per share.

Factors to notice

Southwest is more likely to have confronted headwinds within the second quarter from a difficult macro atmosphere and inflationary pressures that will have impacted journey demand. Home journey demand developments, specifically, can have a significant impression on the corporate’s efficiency.

LUV expects its unit income for the second quarter of 2025 to be flat to down 4% YoY and capability to be up 1-2% YoY. The airline expects unit prices, excluding gas, to extend 3.5-5.5% in Q2, pushed by inflationary pressures. Gasoline value per gallon is anticipated to be $2.20-2.30 in Q2.

Within the first quarter, unit revenues elevated 3.5% YoY whereas capability was down 1.9%. Unit prices, ex-fuel, was up 4.6% YoY. Visitors was down 7.4%. Passenger income per obtainable seat mile (PRASM) was up 3.7% YoY.