Southwest. Source: Shutterstock After joining IATA and launching an innovative cabin on its aircraft, Southwest Airlines published its financial results for the third quarter of 2025, reporting a net profit of $54 million ($0.10 per fully diluted share) and an adjusted net profit of $58 million.
The company's revenue for the quarter reached $6.9 billion, up 1.1% from the previous year, with passenger revenue alone totaling $6.3 billion. The increase is attributed to better-than-expected performance in both its revenue and cost units (RASM and CASM), as well as a recovery in demand that began in July and continued throughout the quarter.
Southwest's cabin facelift. Photo: Southwest AirlinesOn an operational level, the company reported a slight increase of 0.8% in available seats (ASM), alongside a sharp decline from expectations in the relative cost per seat unit (CASM-X), which amounted to an increase of only 2.5%.
Fuel expenses were $2.40 per gallon, improving fuel efficiency by 2.4% compared to the same period last year.
Alongside the results, Southwest announced a series of new service initiatives, such as the ability to reserve seats in advance, including those with increased legroom, for flights starting January 27, 2026, when more than 400 aircraft have already undergone the seat upgrade.
It will also launch free Wi-Fi for frequent flyer members sponsored by T-Mobile, a new partnership with Priceline, and expanded destinations through collaborations with companies such as EVA Air.
The company will also begin operating at several new airports in the US and the Caribbean during 2026, including Knoxville, St. Maarten, Sonoma, and Anchorage.
On the financial front, Southwest notes that it returned $439 million to shareholders in the quarter, $250 million of which was through share repurchases and $189 million in dividends. The company's cash balance at the end of the quarter was $3 billion.
The company maintains an annual operating profit (EBIT) forecast of $600-800 million, and expects another revenue record in the fourth quarter of this year.
The capital market's reaction to the quarterly results was positive, with Southwest Airlines shares recording an increase of about 3% in late trading.