Airline operator Southwest Airlines Company (NYSE:LUV) reported mixed fourth-quarter financial results after market close Wednesday.
Here's the key highlights and why shares are trading higher.
• Southwest Airlines stock is surging to new heights today. What’s fueling LUV momentum?
Southwest Airlines Q4 Financial Results
Southwest Airlines reported fourth-quarter revenue of $7.44 billion, up 7.4% year-over-year. The revenue total missed a Street consensus estimate of $7.50 billion, according to data from Benzinga Pro.
The airline operator reported fourth-quarter passenger revenue of $6.8 billion, up 7.6% year-over-year.
Both overall revenue and passenger revenue were records for the fourth quarter.
Southwest reported fourth-quarter earnings per share of 58 cents, narrowly beating a Street consensus estimate of 57 cents per share.
For the full fiscal year, total revenue was $28.1 billion, a company record. Full year earnings per share were 93 cents per share.
What's Next for Southwest Airlines Stock
Southwest Airlines is guiding for first-quarter earnings per share to be 45 cents per share or higher, versus a Street estimate of 34 cents per share.
The company's full year earnings per share guidance is for $4 or higher, versus a Street estimate of $3.19. This guidance represents a year-over-year improvement of more than 300% year-over-year.
"Notwithstanding the impact of Winter Storm Fern, 2026 is off to a strong start, driven by the Company's Customer-focused product offering, operational excellence, and dramatic progress from the transformational initiatives implemented last year," the company said.
The company said it closed 2025 with "strong momentum" and first-quarter bookings are reflective of the transformation undertaken in 2025.
Southwest Airlines Stock Soars
Southwest Airlines stock is up 6.7% to $43.60 in after-hours trading Wednesday versus a 52-week trading range of $23.82 to $45.02.
Photo: Courtesy of Southwest Airlines Company
