Southwest Airlines has reported a fourth quarter 2024 net profit of $261 million or $0.42 per diluted share on a year-over-year increase in revenue of 1.6 percent to $6.93 billion. At December 31, 2024, Southwest had $9.7 billion in total liquidity.
On Thursday (January 30, 2025), Southwest Airlines reported their fourth quarter and full year 2024 financial results for the period ending December 31, 2024. The carrier reported a fourth quarter net profit of $261 million or $0.42 per diluted share on a 1.6 percent year-over-year increase in revenue to $6.93 billion. Southwest’s Q4 revenue per available seat mile (RASM) increased 6.2 percent compared to the same period last year to 15.92 cents, while cost per available seat mile (CASM) declined 3.8 percent to 15.28 cents. Costs excluding fuel (CASM-ex) increased 2.0 percent versus Q4 2023 to 12.38 cents.
In Thursdays announcement, Southwest Airlines’ President, CEO, and Vice Chairman of the Board of Directors, Bob Jordan, said,
“We closed out 2024 with positive momentum from our revenue initiatives and the performance of our operation. While we still have much work to do, we are pleased that the improvements from our tactical initiatives are materializing faster than expected, and our progress continues to be further supported by a constructive demand environment and industry backdrop. Similarly, we are working to accelerate and exceed our 2027 $500 million cost reduction target, supporting a 2025 CASM-X exit rate in the low-single digits. Based on confidence in our performance and outlook, we are launching a $750 million accelerated share repurchase, with the initial $250 million share repurchase now complete. We are also pleased with our continued strong operational performance. The recent recognition we received by the Wall Street Journal’s 2024 annual airline rankings is a testament to our outstanding People and the significant investments we have made in our operation.
“As we look forward, 2025 will be a pivotal year as we continue to execute and deliver on our ‘Southwest. Even Better.’ transformational plan, the largest and most comprehensive in our 53-year history. To that end, we recently reached an amended co-brand agreement with Chase that provides enhanced Cardmember benefits associated with our assigned and premium seating initiative and supports the multi-year financial targets we announced at Investor Day. We will continue moving forward with urgency to drive financial improvements while maintaining a safe, reliable, and efficient operation; delivering unrivaled Hospitality; modernizing our Customer Experience; and providing enhanced Shareholder returns.”
For the full year 2024, Southwest reported a net profit of $465 million or $0.76 per diluted share, flat from FY2023, on a 5.3 percent year-over-year increase in revenue to $27.5 billion. The carrier’s full year revenue per available seat mile increased 1.2 percent compared to FY2023 to 15.51 cents, while cost per available seat mile (CASM) increased 0.9 percent to 15.32 cents. Costs excluding fuel (CASM-ex) for the full year 2024 increased 4.4 percent compared to the previous year to 12.05 cents. At December 31, 2024, Southwest had liquidity totaling $9.7 billion, including $8.7 billion in cash, cash equivalents and short-term investments, as well as a fully available revolving credit line of $1.0 billion.
During the fourth quarter 2024, Southwest took delivery of three Boeing 737-8 MAX aircraft, for a total of 22 of the type received in 2024. The company ended the year with 803 aircraft, reflecting 36 retirements, including 34 Boeing 737-700s and two 737-800s. Southwest is projecting that they will take delivery of 38 737-8s in 2025 as Boeing continues to ramp up production, while also working to certify the 737-7 MAX.
Founded in 1971, Dallas-based Southwest Airlines (NYSE: LUV) has distinguished itself by offering exemplary customer service delivered by nearly 75,000 team members at 121 airports across 11 countries. Southwest offers a robust point-to-point network with a strong presence across leisure and business markets. During peak travel seasons, the airline operates more than 4,000 daily departures to 120 destinations across the U.S. and 10 additional countries. Southwest also continues to develop tangible steps toward achieving carbon neutrality by 2050, including offering customers the opportunity to help the airline offset carbon emissions.
Source: Southwest Airlines