Southwest Airlines reported a record-breaking full year with significant revenue growth, driven by the airline’s efforts to improve operational performance and revenue initiatives. According to CEO Bob Jordan, the carrier ended 2024 with positive momentum from its strategic plans.
The airline generated $6.9 billion in Q4 revenues and $27.5 billion for the full year, resulting in net income of $261 million and $465 million respectively. Southwest’s liquidity exceeded debt by $3 billion, providing a solid financial foundation.
Jordan acknowledged that there is still work to be done but highlighted progress from its “Southwest. Even Better.” transformation plan. The airline has been investing in operational improvements and revenue growth initiatives.
Southwest Airlines expects revenue per available seat mile (RASM) to grow between 5-7%, with capacity expected to decrease by 2% in Q1. Operating margins, excluding special items, are projected to range from 3-5%. The airline aims to achieve a return on invested capital (ROIC) of 5-8%.
The airline is optimistic about its future prospects, particularly with regards to Boeing deliveries. While it had initially expected more aircraft in 2024, the actual number was two less than anticipated, due to the company’s decision to retire some planes.
For 2025, Southwest expects a capacity growth of 1% to 2%, measured in available seat miles (ASM). The airline is also planning to accelerate its share repurchase program with an additional $500 million allocation.
Source: https://simpleflying.com/southwest-airlines-record-revenue-27-billion-2024