Is Southwest losing money?

Key Takeaways. Southwest Airlines (LUV) reported a worse-than-anticipated loss of $0.27 per share for the first quarter of 2023. The negative results reflect the lingering impact of operational disruptions suffered by the airline in December 2022.



As of early 2026, Southwest Airlines is back in the black, reporting a net income of $441 million for the full year of 2025. This financial recovery follows a period of significant turbulence and strategic pivots. The airline has recently undergone what CEO Bob Jordan described as the most ambitious transformation in its history to boost profitability. This includes a major shift away from its long-standing open-seating policy toward assigned seating and the introduction of "extra legroom" premium sections to capture higher-yield revenue. While the airline faced challenges in 2024 and 2025—including pressure from activist investors and rising operational costs—their recent guidance for 2026 is optimistic. They are forecasting a significant jump in earnings per share, targeted at least at $4.00, supported by strong Q1 bookings and the success of new revenue initiatives like expanded online distribution and loyalty program optimizations. So, while they faced a period of narrow margins and high scrutiny, they are currently profitable and projecting growth.

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Southwest Airlines is forecasted to grow earnings and revenue by 28.9% and 5.9% per annum respectively. EPS is expected to grow by 30.8%. Return on equity is forecast to be 17.5% in 3 years.

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Southwest Airlines' financial metrics Southwest Airlines brings in more operating revenue than it pays in operating expenses, an indication of the financial stability for the company. The airline held. Southwest Airlines is one of the top ten largest airlines in the North America, in terms of operating revenue in 2022.

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Strong Balance sheet: Southwest's total debt and operating lease liabilities stood at $9.3 billion as of June 30, 2023, down from a peak of $13.3 billion during the pandemic. Total debt remains well below Southwest's total cash and short-term investments of $12.2 billion.

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The carrier ranked No. 23 overall and No. 3 on the airline industry list, improving its ranking from FORTUNE's 2022 list. Southwest® has been featured consistently on the World's Most Admired Companies list since 2009.

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It wasn't all good news: The lingering impact of massive service problems caused Southwest Airlines to report a first-quarter loss, as the airline warned would happen three months ago. Weak bookings in January and February caused a $325 million hit to revenue in the quarter.

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Here's the ranking of US airlines from MOST complaints in May 2022 to LEAST complaints in May 2022:
  • American Airlines (575 complaints)
  • United Airlines (400 complaints)
  • Frontier Airlines (301 complaints)
  • Delta Air Lines (281 complaints)
  • Spirit Airlines (269 complaints)
  • JetBlue Airways (244 complaints)


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For example, Southwest Airlines pilots earn an average annual salary of $222,000. However, some Southwest pilots earn as much as $549,000. Similarly, United Airlines pilots earn an average of $205,000. The average Delta Airlines pilot earns $192,000 with top-earners making $526,000.

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Dallas-based Southwest Airlines may not be well-known outside North America, but the low-cost pioneer has a history of delivering profitable results. While it broke its decades-long profitability run in 2020, it quietly bounced back in early 2022.

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A rigorous and comprehensive investigation into Southwest Airlines' holiday debacle that stranded millions is in its early stages, the department said in a statement. Southwest canceled more than 16,000 flights in the week ending Dec. 29 after its crew scheduling software failed to handle staffing changes.

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American Airlines and its partners – 2.81% of flights canceled. Frontier Airlines – 2.87% of flights canceled. Spirit Airlines – 3% of flights canceled. Southwest Airlines – 3.26% of flights canceled.

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Southwest Airlines reviews According to the 2022 Airline Quality Rating report, Southwest was ranked as the No. 1 airline in 2021 and 2020. In addition, Southwest had the second lowest consumer complaint rate in 2021.

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Since its U.S. Airways tie-up that in 2013 created the world's biggest carrier, American has been both the least lucrative of the four majors, and accumulated the most debt. And the combination limits its ability to reduce the big pile of borrowings.

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Southwest Airlines is more flexible than most other large airlines. Southwest is the only large U.S. airline that is also a low-cost carrier. Southwest Airlines' strategy emphasizes recruiting and retaining motivated employees. Southwest continues to improve its business model and practices.

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