Southwest profit drops, but airline says travel demand has stabilized

Southwest CEO Bob Jordan told CNBC last month that discounting was common this summer. In April, Southwest had pulled its 2025 financial guidance, citing economic uncertainty. Domestic coach-class travel demand has come in weaker than airline executives expected this year. A Southwest Airlines Boeing 737 taxis at Ronald Reagan Washington National Airport on May 16, 2025 in Arlington, Virginia. Kevin Carter | Getty Images

Southwest Airlines on Wednesday posted second-quarter earnings and revenue that fell short of Wall Street’s estimates but said travel demand has stabilized, echoing other airlines in recent weeks.

The airline also announced a new $2 billion share buyback.

Here’s how Southwest performed in the second quarter compared with Wall Street expectations, according to consensus estimates from LSEG:

Earnings per share: 43 cents adjusted vs. 51 cents expected Revenue: $7.24 billion vs. $7.3 billion expected