Southwest Airlines CEO Bob Jordan recently discussed the impact of discounting on domestic coach-class travel demand, which has been weaker than expected this year. Southwest Airlines reported second-quarter earnings and revenue that fell short of Wall Street’s estimates, but said travel demand has stabilized. The carrier pulled its 2025 financial guidance in April due to economic uncertainty in the U.S. Southwest also announced a $2 billion share buyback.
Southwest expects its third-quarter unit revenue to range between a 2% drop to a 2% increase over the same July-through-September period of 2024. The airline has been overhauling its business model, moving from open seating to assigned seats and new boarding orders. The airline reported sales of basic economy on its website suffering after launching restrictive new fares in May.
Southwest posted net income of $213 million in the second quarter, down 42% over last year, on sales of $7.24 billion, 1.5% lower than a year earlier. Adjusting for one-time items, Southwest’s second-quarter earnings were $230 million, or 43 cents a share, down 38% from last year. Passenger revenue per seat mile came in at $14.10, below the $14.19 Wall Street had expected.
