Southwest beats earnings estimates, forecasts stronger demand for rest of the year

Southwest Airlines‘ shares rose 3% in after-hours trading Wednesday after the airline posted a surprise quarterly profit and noted that both demand and fares are on the rise.

Here’s how Southwest performed in thethird quartercompared with Wall Street expectations, according to consensus estimates from LSEG:

• Earnings per share:11 centsadjusted vs. loss of 3 cents expected
• Revenue:$6.95 billion vs. $6.92 billion expected

In July, Southwest joined other airlines in cutting its 2025 profit forecast, which it reaffirmed Wednesday. The Dallas carrier said it expected full-year earnings before taxes of $600 million to $800 million, down from an earlier forecast of $1.7 billion. It reaffirmed that earnings outlook on Wednesday.

The carrier has been working to better compete with rivals and increase sales, abandoning longtime policies like open seating and two free checked bags for each traveler.

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