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Southwest Airlines has announced that travel demand has stabilized despite reporting lower-than-expected earnings and revenue for the second quarter. The airline's Board of Directors approved a new $2 billion share buyback program to be completed over the next two years.
Earlier this year, Southwest withdrew its 2025 forecast due to economic uncertainties in the United States and decided to reduce flights during off-peak times. The company anticipates a slight fluctuation in third-quarter unit revenue compared to last year, ranging from a 2% decrease to a 2% increase.
The airline recently introduced changes including bag fees and a basic economy product structure. Bob Jordan, President, Chief Executive Officer, & Vice Chairman of the Board of Directors, stated: "We continued to make meaningful progress against our transformational plan in second quarter... These initiatives are coming online quickly, and we are pleased with performance thus far."
