Southwest Airlines reports record revenue for fiscal year ending December 31st

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Southwest Airlines reports record revenue for fiscal year ending December 31st

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Southwest Airlines | Simple Flying

By Sky Industry News

Feb 3, 2025

Southwest Airlines has reported a record revenue of $27.6 billion for 2024, marking a significant milestone for the airline. The company's chief executive, Bob Jordan, highlighted the positive momentum from revenue initiatives and operational performance as key contributors to this achievement.

The airline concluded the fourth quarter of 2024 with a net income of $261 million and a full-year net income of $465 million. Revenues reached $6.9 billion in Q4 2024 and totaled $27.5 billion for the year, with liquidity at $9.7 billion surpassing its debt of $6.7 billion.

Despite these successes, Jordan acknowledged that there is still work to be done but noted that improvements from tactical initiatives are progressing faster than expected due to "a constructive demand environment and industry backdrop." He added, "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."

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Looking ahead to 2025, Southwest Airlines anticipates continuing its positive trajectory. The airline also reported better-than-expected Boeing deliveries in 2024, receiving 22 Boeing 737 MAX 8 aircraft instead of the anticipated 20. This contributed to a year-on-year capacity growth of 4.1%.

Southwest plans to receive fewer aircraft in 2025 than contractually scheduled but remains optimistic about additional deliveries following discussions with Boeing. The company aims to retire approximately 51 aircraft by the end of next year.

Boeing has yet to certify the 737 MAX 7 model but intends to do so in 2025 alongside efforts on other models like the MAX 10.

Bob Jordan stated that "2025 will be a pivotal year" as Southwest continues executing its transformation plan amidst ongoing developments such as an amended co-brand agreement with Chase aimed at enhancing customer benefits.

The airline projects growth in revenue per available seat mile (RASM) between 5% and 7%, with capacity expected to decrease slightly by up to 3% YoY in Q1. Operating margins excluding special items should range between 3% and 5%, while return on invested capital (ROIC) is projected between 5% and 8%.