Latest news with #Southwest Airlines
Reuters
31 minutes ago
- Business
- Reuters
Southwest Airlines misses Q2 profit estimates as US travel demand wavers
July 23 (Reuters) - Southwest Airlines (LUV.N), opens new tab posted second-quarter profits that missed Wall Street estimates on Wednesday, hurt by weak travel demand in the domestic market. Lingering uncertainty about the broader economy and rising living costs in the aftermath of President Donald Trump's trade war have taken a toll on carriers that primarily service the U.S. domestic market and price-sensitive customers. To stimulate demand, they have been leaning on fare discounts. Southwest's shares were down 2% after the bell. The company said it expects $600 million-$800 million in earnings before interest and taxes this year, less than half its previous forecast of $1.7 billion. Still, Southwest said domestic leisure travel demand has stabilized and is showing signs of improvement. Southwest said its unit revenue, or revenue generated from each seat, in the current quarter is expected to be in the range of down 2% to up 2% from a year ago. In April, several major U.S. carriers scrapped their financial forecasts, citing uncertainty linked to President Donald Trump's broad tariff measures and government spending cuts, which pressured consumers to scale back travel plans. Since then, airline executives and analysts have signaled that demand trends and the broader travel environment are showing signs of steadiness. Even so, the domestic market remains under pressure, with cost-conscious travelers remaining cautious as household budgets tighten. Summer, typically the peak money-making season for airlines, is falling short this year as sluggish demand for standard economy seats forces carriers to cut fares, undermining their pricing power. Delta Air Lines (DAL.N), opens new tab and United Airlines (UAL.O), opens new tab have seen strong revenue gains from premium cabins, buoyed by affluent travelers willing to pay for upgrades. By contrast, low-fare carriers such as Southwest are under pressure to maintain profitability as price-sensitive travelers remain cautious with discretionary spending. Southwest reported an adjusted profit per share of 43 cents, compared with analysts' average expectations of 51 cents, according to data compiled by LSEG. It reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier.
Skift
32 minutes ago
- Business
- Skift
Southwest Says Profit Fell, But New Baggage Fees Are Paying Off
While Southwest's profit and revenue fell during the second quarter, the airline noted that domestic leisure demand was starting to stabilize. Southwest Airlines said Wednesday that domestic demand started to stabilize in the second quarter following a rocky start to the year and that its controversial decision to charge baggage fees was starting to pay off. Still, the results were weak: The carrier reported a net income of $213 million for the second quarter, a 42% decrease from last year. Operating r
CBS News
2 days ago
- Business
- CBS News
Southwest announces when passengers can book assigned seats
Southwest Airline's open seating policy is coming in for its final approach. The Texas-based carrier said Monday that flights with assigned seats will begin on Jan. 27, 2026, marking the end of an era in which the discount carrier for decades bucked industry norms by having passengers choose their seats during boarding. Southwest, which announced last year that it was abandoning open seating, said customers can start booking flights with assigned seats for 2026 starting on July 29. "Assigned seating unlocks new opportunities for our Customers — including the ability to select Extra Legroom seats — and removes the uncertainty of not knowing where they will sit in the cabin," Tony Roach, executive vice president of customer & brand at Southwest Airlines, said in a statement. The new policy will allow travelers to choose from different fare bundles and seat options, including those offering more legroom. A Southwest spokesperson said the airline is unable for now to offer details on how its fares will change under the new reservation system. The airline also recently did away with its "bags fly free" policy, signaling a broader shift in its revenue strategy amid mounting financial pressure. People who book flights on or after May 28 ust pay $35 for the first checked bag and $45 for the second. Southwest also announced on Monday that it is overhauling its boarding process. The new boarding sequence will group passengers based on seat location, with priority given to people who choose seats with extra legroom and to loyalty program members. Southwest customers can also pay for priority boarding if they want to move up in the queue. While Southwest passengers are currently assigned a group letter (A-C) and number, they will now be assigned a group number, 1-8. The new approach is intended to "deliver a smooth and efficient Customer Experience on every flight," Southwest said.
Yahoo
7 days ago
- Business
- Yahoo
Southwest Airlines Considering Rewards Change After Ending Free Bags
Late last month, Southwest Airlines instituted its new bag policy, which was previously announced in March. "For reservations booked and ticketed or changed on or after May 28, 2025, checked baggage fees will apply. We will offer two free checked bags to our Rapid Rewards A-List Preferred Members and Business Select Customers, and one free checked bag to A-List Members and other select Customers. Southwest will credit the first checked bag for Rapid Rewards Credit Cardmembers," the airline said in a statement at the time. A month after the airline ended one of its only benefits over opposing airlines, Southwest appears to be considering another major change - one that customers are already fuming over. Travel insider View From the Wing, revealed the airline is considering a change to its Rapid Rewards loyalty program, including major restrictions to the popular Companion Pass benefit, after a leaked survey was revealed in a Facebook chat and Reddit post. "So I took a survey, husband A-List Preferred. Our 6th year with companion pass and it seems they want to change up the tiers of rewards to 5 levels and only give the highest level the ability to have Companion seat picked at booking. They are so going to start making us pay for every little thing," the Facebook post read. The Reddit discussion thread: "Southwest survey on loyalty levels for next year. Seems likely a big CP nerf incoming. They're looking at a 4 tier program, with only the top tier earning CP, if that. Top tier qualifying points requirements ranging from 100-160k or 30-50 round trips. Companion pass options are either nonexistent, 4 one way certs or full CP. No CP on the lower 3 tiers at all in the survey. They seem to be entertaining a option to keep the seat next to you open, with various numbers of certs. Any seat, 3 bags, 2 drinks, priority lane at top level. Various iterations down to almost nothing at a low level that bottoms out at 10k. No indication if card sign up bonuses count for qualifying points or not. Currently, Rapid Rewards members can earn the Companion Pass, which allows a second traveler to fly free (excluding taxes) on both paid and award tickets. However, with the potential change only those in the highest tier would retain full Companion Pass Airlines Considering Rewards Change After Ending Free Bags first appeared on Men's Journal on Jun 30, 2025 Solve the daily Crossword
