Southwest Airlines posts surprise quarterly profit

Southwest Airlines reported a surprise profit for the third quarter, driven by steady travel demand and higher fares. The company also expects record sales from October to the year-end.

Adjusted earnings reached 11 cents a share, beating Wall Street’s forecast of a 3-cent loss. Revenue rose 1% to $6.95 billion, slightly above expectations.

The Dallas-based carrier earned $54 million, down 19% from $67 million a year earlier, or 10 cents a share.

The airline reaffirmed its 2025 earnings forecast of $600 million–$800 million, lower than its earlier $1.7 billion estimate.

To boost sales, Southwest ended open seating and introduced paid seat assignments. CFO Tom Doxey said the increased sales from these will begin showing up in first-quarter results.