Southwest Airlines reported lower-than-expected profit and revenue for the second quarter of 2025. The airline was hurt by weak demand from U.S. consumers for travel. Bob Jordan, Southwest’s CEO, said there has been more discounting this summer.
This is usually the busiest travel time of the year. In April, Southwest withdrew its financial guidance for 2025. It cited economic uncertainty as the reason.
The airline had weaker demand than expected for domestic coach-class travel this year. For the second quarter, Southwest reported:
– Adjusted earnings per share of 43 cents, compared to 51 cents expected
– Revenue of $7.24 billion, compared to $7.3 billion expected
Southwest plans to cut flights during off-peak periods in response to the weaker demand. It expects third-quarter unit revenue to range from a 2% drop to a 2% increase compared to the same period in 2024.
The airline has been making changes to its business model. These include moving from open seating to assigned seats and new boarding orders.
Southwest adjusts to weaker demand
It also introduced restrictive new fares in May. This initially impacted sales of basic economy tickets, but they have since returned to expected levels. Southwest posted a net income of $213 million in the second quarter.
This is down 42% from the previous year. Sales were $7.24 billion, a 1.5% decrease year-over-year. Adjusted earnings were $230 million, down 38% from the prior year.
Passenger revenue per seat mile was $14.10. This was slightly below the $14.19 expected by Wall Street. Southwest is focusing on adjusting its strategies to align with the current market.
It wants to ensure sustainability and growth despite economic uncertainties and changing travel demands. The airline industry as a whole is facing challenges. Several carriers are adjusting their strategies in response to the evolving economic landscape.