synopsis

The company reported an adjusted net loss of $0.13 per share for the first quarter, while analysts expected it to post a loss of $0.19 per share

Southwest Airlines (LUV) stock fell 2.4% in extended trading on Wednesday after the company withdrew its 2025 earnings forecast.

The company pulled its earnings before interest and taxes (EBIT) projections for 2025 and 2026, citing “macroeconomic uncertainty” and difficulty in forecasting due to recent and short-lived booking trends.

Southwest Airlines reported an adjusted net loss of $0.13 per share for the first quarter, while analysts expected it to post a loss of $0.19 per share, according to FinChat data.

The company joined rivals Delta Air Lines and Frontier Group in withdrawing its annual outlook as airlines struggle with declining prices. United Airlines gave two separate forecasts considering volatile economic activity.

While passenger demand was projected to spike in 2025, higher chances of a recession amid tariff policy uncertainty have weighed in.

Southwest’s net loss narrowed to $149 million for the quarter ended March 31, compared with a loss of $231 million a year earlier.

The airline has taken a slew of actions to rein in costs after being targeted by activist investor Elliott Investment Management. This year, it announced mass layoffs for the first time and said it will scrap its free check-in baggage policy.

“Thus far, the Company has seen no evidence of book-away following its recent announcement of policy changes, including flight credit expiration and checked bag fees,” the company said.

It also raised its 2025 cost-cutting target to about $370 million and the 2027 run-rate cost savings to over $1 billion.

Retail sentiment on Stocktwits was in the ‘bullish’ (59/100) territory, while retail chatter was ‘high.’

LUV’s Sentiment Meter and Message Volume as of 02:04 a.m. ET on April 24, 2025 | Source: Stocktwits

One retail trader said that there was nothing unusual about the withdrawal of the forecast, and the stock is priced for the pullback.

Southwest shares have fallen 24.1% year to date.

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