Southwest Airlines Q2 Profit Misses Estimates, Announces $2 Billion Share Buyback
Southwest Airlines Q2 Profit Misses Estimates, Announces $2 Billion Share Buyback
Southwest Airlines today revealed its second-quarter financial results, reporting earnings and revenue that fell short of Wall Street’s expectations. Despite the miss, the airline offered a hopeful outlook, stating that travel demand has begun to stabilize, a sentiment echoed by other major carriers in recent weeks.
For the second quarter, Southwest posted adjusted earnings per share of 43 cents, below the anticipated 51 cents. Revenue reached $7.24 billion, slightly under the $7.3 billion analysts had projected.
In a move to boost shareholder value, the Dallas-based airline also announced a new $2 billion share buyback program. The carrier had previously withdrawn its 2025 guidance in April due to ongoing economic uncertainties in the U.S. Like its competitors, Southwest has been adjusting its flight schedules, particularly during off-peak periods, to contend with softer-than-expected domestic travel demand throughout the year. CEO Bob Jordan recently acknowledged increased discounting during the typically busy summer travel season.
Looking ahead, Southwest projects its third-quarter unit revenue, a key indicator of pricing power, to fluctuate between a 2% decrease and a 2% increase compared to the same period in 2024.
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