Southwest Airlines (LUV) reported $7.44 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 7.4%. EPS of $0.58 for the same period compares to $0.56 a year ago.
The reported revenue represents a surprise of -1.01% over the Zacks Consensus Estimate of $7.52 billion. With the consensus EPS estimate being $0.56, the EPS surprise was +4.51%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Southwest performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Load factor: 77.2% versus the five-analyst average estimate of 80.1%.
- CASM, excluding Fuel and oil expense, special items, and profit sharing expense: 12.29 cents compared to the 12.61 cents average estimate based on four analysts.
- Available seat miles (ASMs): 46.05 billion versus 46.05 billion estimated by four analysts on average.
- Revenue passenger miles (RPMs): 35.57 billion compared to the 37.13 billion average estimate based on four analysts.
- Revenue Per Available Seat Mile (RASM): 16.16 cents compared to the 16.3 cents average estimate based on four analysts.
- Passenger revenue per ASM (PRASM): 14.73 cents versus the four-analyst average estimate of 14.83 cents.
- Passenger revenue yield per RPM: 19.08 cents versus the three-analyst average estimate of 18.42 cents.
- Fuel consumed: 545.00 Mgal versus 567.46 Mgal estimated by three analysts on average.
- Fuel costs per gallon, including fuel tax: 2.45 $/gal compared to the 2.26 $/gal average estimate based on three analysts.
- Operating Revenues- Passenger [$M]: $6.79 billion versus $6.75 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7.6% change.
- Operating Revenues- Other: $614 million compared to the $680.12 million average estimate based on five analysts. The reported number represents a change of +6% year over year.
- Operating Revenues- Freight [$M]: $43 million versus $50.48 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -4.4% change.
View all Key Company Metrics for Southwest here>>>
Shares of Southwest have returned +0.2% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Southwest Airlines Co. (LUV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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