Southwest Airlines Q4 Results: Mixed Revenue, Strong EPS

Southwest Airlines reported mixed fourth-quarter results, with operating revenue rising 1.6% year-over-year to $6.931 billion, slightly below the expected $6.96 billion. However, the adjusted earnings per share (EPS) exceeded expectations at $0.56, compared to analysts' estimates of $0.44. This positive earnings performance was bolstered by robust travel demand, especially during the holiday season, improved pricing power, and tactical initiatives that enhanced operational efficiency. The company's CEO, Bob Jordan, expressed optimism due to a constructive demand environment and announced a forecasted 5-7% increase in revenue per available seat mile (RASM) for the first quarter of 2025. Southwest also initiated a $750 million accelerated share buyback program, while dealing with challenges such as rising labor costs and delayed Boeing 737 MAX deliveries. The airline's strategic plans include expanding its fleet with more efficient aircraft and leveraging increased capacity for better revenue management.