Southwest Airlines Co. (NYSE:LUV ) Q1 2025 Earnings Conference Call April 24, 2025 12:30 PM ET Corporate Participants Julia Landrum - Vice President, Investor Relations Bob Jordan - President & Chief Executive Officer Andrew Watterson - Chief Operating Officer Tom Doxey - Executive Vice President & Chief Financial Officer Whitney Eichinger - Chief Communications Officer Conference Call Participants Ravi Shankar - Morgan Stanley Andrew Didora - Bank of America Catherine O'Brien - Goldman Sachs David Vernon - Bernstein Jamie Baker - JPMorgan Sheila Kahyaoglu - Jefferies Conor Cunningham - Melius Research Tom Fitzgerald - TD Cowen Duane Pfennigwerth - Evercore ISI Savi Syth - Raymond James Mary Schlangenstein - Bloomberg News Operator Hello everyone and welcome to the Southwest Airlines First Quarter 2025 Conference Call. I'm Jamie and I'll be moderating today's conference which is being recorded.
LUV's first-quarter 2025 revenues benefit from yield improvements from revenue management actions and capacity moderation.
Airline stocks are in focus today, after sector stalwarts American Airlines Group Inc (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV) stepped into the earnings confessional.
"Macroeconomic uncertainty" led Southwest Airlines to pull its guidance and cut capacity for the second half of the year, the carrier said on Wednesday.
Southwest Airlines Co (NYSE:LUV), American Airlines Group Inc (NASDAQ:AAL, ETR:A1G) and Alaska Air Group (NYSE:ALK) have joined other major US airline carriers in pulling their 2025 profit outlook amid economic uncertainty and weaker-than-expected travel demand. Handing down its first quarter earnings on Wednesday evening, Southwest noted difficulties in forecasting due to “short-lived booking trends.
Shares of Southwest Airlines (LUV) fell in premarket trading Thursday, a day after the carrier withdrew full-year earnings projections and said it was reducing capacity amid "macroeconomic uncertainty."
While the top- and bottom-line numbers for Southwest (LUV) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
With little clarity on how consumers will behave in the face of a potentially worsening economy, airlines are struggling to accurately forecast their business.
Southwest Airlines (LUV) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to loss of $0.36 per share a year ago.
A pullback in travel demand is hurting Southwest Airlines, and the airline pulled its full-year business projections given overall economic uncertainty.
Investors interested in the Transportation sector can look forward to the first-quarter 2025 earnings reports of WAB, ODFL, UNP, and LUV.