A Look at Southwest Airlines's Upcoming Earnings Report

Author: Benzinga Insights | October 21, 2025 11:02am

Southwest Airlines (NYSE:LUV) is preparing to release its quarterly earnings on Wednesday, 2025-10-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Southwest Airlines to report an earnings per share (EPS) of $-0.02.

Southwest Airlines bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

Last quarter the company missed EPS by $0.08, which was followed by a 11.16% drop in the share price the next day.

Here's a look at Southwest Airlines's past performance and the resulting price change:

Quarter	Q2 2025	Q1 2025	Q4 2024	Q3 2024
EPS Estimate	0.51	-0.19	0.46	0.00
EPS Actual	0.43	-0.13	0.56	0.15
Price Change %	-11.00	4.00	-2.00	1.00

Tracking Southwest Airlines's Stock Performance

Shares of Southwest Airlines were trading at $34.43 as of October 20. Over the last 52-week period, shares are up 13.18%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Southwest Airlines

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Southwest Airlines.

With 6 analyst ratings, Southwest Airlines has a consensus rating of Neutral. The average one-year price target is $33.33, indicating a potential 3.19% downside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Joby Aviation, Alaska Air Gr and Copa Holdings, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Joby Aviation, with an average 1-year price target of $13.0, suggesting a potential 62.24% downside.
• Analysts currently favor an Outperform trajectory for Alaska Air Gr, with an average 1-year price target of $70.38, suggesting a potential 104.41% upside.
• Analysts currently favor an Buy trajectory for Copa Holdings, with an average 1-year price target of $150.4, suggesting a potential 336.83% upside.

Key Findings: Peer Analysis Summary

In the peer analysis summary, key metrics for Joby Aviation, Alaska Air Gr and Copa Holdings are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Southwest Airlines	Neutral	-1.50%	$1.36B	2.45%
Joby Aviation	Neutral	-46.43%	$5K	-36.94%
Alaska Air Gr	Outperform	27.86%	$685M	4.26%
Copa Holdings	Buy	2.83%	$291.77M	5.91%

Key Takeaway:

Southwest Airlines ranks in the middle for revenue growth among its peers. It has the highest gross profit compared to its peers. Southwest Airlines has the lowest return on equity among its peers.

All You Need to Know About Southwest Airlines

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated in a single, open-seating cabin configuration in a point-to-point network. In late 2025, Southwest will modify its cabins to offer some rows with extra legroom and will update its ticketing process and merchandising to offer assigned seats and more fare categories, including a basic economy class that will more directly compete with other airlines' offerings and appear for the first time in travel aggregators' search results.

Southwest Airlines's Financial Performance

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Negative Revenue Trend: Examining Southwest Airlines's financials over 3 months reveals challenges. As of 30 June, 2025, the company experienced a decline of approximately -1.5% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Southwest Airlines's net margin excels beyond industry benchmarks, reaching 2.94%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Southwest Airlines's ROE excels beyond industry benchmarks, reaching 2.45%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Southwest Airlines's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.69%, the company showcases efficient use of assets and strong financial health.

Debt Management: Southwest Airlines's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.67.

To track all earnings releases for Southwest Airlines visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: LUV