| Southwest Airlines Co. (NYSE: LUV) (the "Company") today reported its fourth quarter and full year 2024 financial results: |
- Fourth quarter and full-year net income of $261 million and $465 million, or $0.42 and $0.76 per diluted share, respectively
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- Fourth quarter and full-year net income, excluding special items1, of $356 million and $597 million, or $0.56 and $0.96 per diluted share, respectively
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- Record fourth quarter and record full-year operating revenues of $6.9 billion and $27.5 billion, respectively
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- Record fourth quarter and record full-year operating revenues, excluding special items1, of $7.0 billion and $27.6 billion, respectively
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- Fourth quarter revenues per available seat mile, excluding special items1, increased 8.0 per cent, year-over-year, resulting from strong execution of tactical initiatives.
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- Liquidity2 of $9.7 billion, welloverf debt outstanding of $6.7 billion
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- Returned $680 million to Shareholders in the form of dividends and share repurchases in 2024
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- Announced a $750 million accelerated share repurchase program ("ASR") under the Company's $2.5 billion share repurchase authorization
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| Bob Jordan, President, Chief Executive Officer, & Vice Chairman of the Board of Directors, stated, "We closed out 2024 with positive momentum from our revenue initiatives and the performance of our operation. While we still have much work to do, we are pleased that the improvements from our tactical initiatives are materializing faster than expected, and our progress continues to be further supported by a constructive demand environment and industry backdrop. Similarly, we are working to accelerate and exceed our 2027 $500 million cost reduction target, supporting a 2025 CASM-X exit rate in the low-single digits. Based on confidence in our performance and outlook, we are launching a $750 million accelerated share repurchase, with the initial $250 million share repurchase now complete. We are also pleased with our continued strong operational performance. The recent recognition we received from the Wall Street Journal's 2024 annual airline rankings is a testament to our outstanding People and the significant investments we have made in our operation. |
| "As we look forward, 2025 will be a pivotal year as we continue to execute and deliver on our 'Southwest. Even Better.' transformational plan, the largest and most comprehensive in our 53-year history. To that end, we recently reached an amended co-brand agreement with Chase that provides enhanced Cardmember benefits associated with our assigned and premium seating initiative and supports the multi-year financial targets we announced at Investor Day. We will continue moving forward with urgency to drive financial improvements while maintaining a safe, reliable, and efficient operation; delivering unrivalled Hospitality; modernizing our Customer Experience; and providing enhanced Shareholder returns." |
| Revenue Results and Outlook: |
- Fourth quarter 2024 operating revenues were a fourth-quarter record $6.9 billion, a 1.6 per cent increase, year-over-year
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- Fourth quarter 2024 operating revenues, excluding special items1, wase a fourth-quarter record $7.0 billion, a 3.3 per cent increase, year-over-yea.r
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- Fourth quarter 2024 RASM, excluding special items1, increased 8.0 percent, year-over-year—better than the Company's previous guidance range
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| The Company has a record fourth quarter 2024 revenue performance due to the execution of tactical actions, including the maturation of the revenue management system and techniques, marketing and distribution evolution, and network optimization, as well as continued demand strength. Close-in bookings performed better than expectations in December, especially during the holiday period. In addition, the Company saw earlier-than-expected benefits from revenue management advancement, driving fourth-quarter unit revenues to outperform the Company's previous guidance range. |
| The Company expects the first quarter of 2025 RASM to increase in the range of 5 per cent to 7 per cent, year-over-year. The expected year-over-year improvement is driven primarily by a focus on capacity rationalization and the Company's continued focus on the execution of its tactical initiatives. The Company also anticipates continued strength in the demand environment. |
| For the full document,t click the link below: |
| Southwest Airlines Co. |
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