Las Vegas, Nevada – March 15: a Boeing 737 plane from Southwest Airlines leaves from Harry Reid International Airport as another plane taxi on March 15, 2025 in Las Vegas, Nevada. (Photo of Kevin Carter / Getty Images)
Kevin Carter | Getty Images News | Getty images
Southwest Airlines said on Wednesday that it would reduce its capacity to the second half, because more signs indicate lower national reservations this year.
The airline said it expects unit income to be stable up to 4% in the second quarter compared to the previous year. Southwest said that he did not reaffirm his directives for benefits before interest and taxes for 2025 and 2026, citing “current macroeconomic uncertainty”.
United And Delta Earlier this month, he announced his intention to reduce his interior capacity plans to the second half. Delta also withdrew his annual forecasts while United provided two forecasts, qualifying the “impossible” American economy to predict. Southwest said that with changes, its annual capacity will be up 1% compared to 2024.
The earnings and income of the carrier first quarter beat analysts’ expectations.
Here is how Southwest worked in the first quarter compared to Wall Street expectations, according to consensual estimates of LSEG:
- Loss by action: 13 cents adjusted vs loss of 18 cents adjusted
- Income: $ 6.43 billion against $ 6.40 billion expected
The carrier has established spectacular changes to its commercial model of more than half a century in the past year, increasing the channels where it sells its prices to sites like ExpediaTo launch a plan to put an end to its open seat model for the attributed seats and to introduce restrictive basic economic tickets.
Next month, he plans to start billing many travelers to check their luggage, ending his policy of several decades to allow customers to check two bags for free.
“We see positive results on recently deployed initiatives,” CEO Bob Jordan said in a results statement.
In the first quarter, Southwest displayed a net loss of $ 149 million, an improvement compared to a loss of $ 231 million a year ago and a turnover of more than $ 6.4 billion, which increased by 1.6% compared to a year ago. Adjustment for special items, Southwest declared a loss of 13 cents per share for the three months closed on March 31.
Southwest leaders will face analysts’ questions during a quarterly call at 12:30 p.m. Thursday.
