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Southwest’s profits are down 42% this year but it’s the top U.S. airline stock

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Southwest’s profits are down 42% this year but it’s the top U.S. airline stock


A Southwest Airlines Boeing 737 airplane arrives at Los Angeles International Airport from San Francisco on March 28, 2025 in Los Angeles, California.

Kevin Carter | Getty Images News | Getty Images

Southwest Airlinesprofit fell 42% in the first nine months of the year compared with the same period in 2024. But its stock has been on a tear.

Shares of Southwest are up nearly 24% so far in 2025, more than any other U.S. passenger carrier. Industry profit leaders Delta Air Lines and United Airlines have risen about 17% each this year.

Southwest stock this week hit a 2½ year high. Analysts and investors have high hopes for the carrier next year, when it completes its planned transformation from a one-size-all-fits airline to one that looks more like its larger rivals.

“What’s helping Southwest’s stock is clearly the initiatives, not the [demand] environment, because if it was you’d see it in all the other stocks as well,” said Savanthi Syth, airline analyst at Raymond James.

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Southwest Airlines stock compared with the NYSE Arca Airline index

Starting Jan. 27, Southwest is ditching open seating and moving to assigned seats on its all-Boeing 737 fleet. The first rows of seats have extra legroom — for a fee. Seat prices vary, but, for example, a Baltimore to Las Vegas flight in early February showed the seats going for about $80 each way.

Southwest in October forecast that assigned seating and extra legroom seats could drive $1 billion in pretax earnings next year and $1.5 billion in pretax earnings in 2027.

“Because the assigned seating, the extra legroom, kicks in and there’s a lot of value in that, of course, [results are] going to be better year over year,” Southwest CEO Bob Jordan told CNBC on Dec. 10. “The bookings that we’re seeing reflect the business case for assigned seating and extra legroom.”

Barclays upgraded Southwest’s stock earlier this month, with transportation analyst Brandon Oglenski forecasting Southwest’s adjusted earnings will be above $4 per share next year and surpass $6 per share in 2027.

Read more CNBC airline news

The end of the cattle call boarding lineup comes months after the Dallas carrier got rid of another decades-old policy: two free checked bags for customers. It also started selling its first-ever no-frills basic economy fares.

Southwest, like other airlines, cut its profit forecast for 2025 after demand dipped early this year as President Donald Trump‘s tariffs and cost cutting in Washington weighed on bookings. More recently, the government shutdown that ended last month hurt demand prompting Southwest to again lower its earnings outlook for the year.

Southwest typically provides its yearly outlook alongside the previous year’s earnings in late January.



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Asda boss rejects profiteering claims as petrol price tops 150p

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Asda boss rejects profiteering claims as petrol price tops 150p



Motorists are facing higher fuel prices ahead of Easter break due to the conflict in the Middle East, the RAC says.



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Hetero rolls out generic semaglutide exports to over 75 countries – The Times of India

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Hetero rolls out generic semaglutide exports to over 75 countries – The Times of India


Hyderabad: Pharma player Hetero on Friday said it has rolled out exports of its generic semaglutide injection portfolio as part of a multi-year plan to widen access to treatments for type 2 diabetes and obesity in more than 75 countries.The Hyderabad-based pharmaceutical company said initial rollouts are under way in Africa, Asia and the Middle East, with additional launches planned in other markets subject to regulatory approvals.The injectable therapies will be sold under the brand names Truglyx, Rolmodl and Moto G. Semaglutide belongs to the GLP-1 class of medicines, which are used in diabetes care and weight management.Hetero said the export launch is part of its broader strategy to improve access to advanced cardio-metabolic therapies, particularly in emerging markets.The company said the products will be offered in multi-dose disposable pen devices designed in line with innovator formats and will be available in several strengths, including 0.25 mg, 0.5 mg, 1 mg, 2 mg, 1.7 mg and 2.4 mg, allowing dosing flexibility for both diabetes and obesity treatment.Hetero said it is also awaiting approval from India’s Central Drugs Standard Control Organisation (CDSCO) after completing clinical trials in type 2 diabetes and obesity and plans an India launch after regulatory clearance.Hetero managing director Dr Vamsi Krishna Bandi said the company aims to provide high-quality, affordable generic semaglutide through a single global product platform backed by its manufacturing and development capabilities.He said Hetero would use its commercial networks across Asia, the Middle East, Africa and Latin America to support supply and access. The Hyderabad-headquartered Hetero operates in more than 145 countries and employs over 30,000 people.



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India-US trade deal update: Piyush Goyal meets USTR Jamieson Greer, discusses next steps in BTA talks – The Times of India

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India-US trade deal update: Piyush Goyal meets USTR Jamieson Greer, discusses next steps in BTA talks – The Times of India


Commerce and industry minister Piyush Goyal on Friday met US Trade Representative Jamieson Greer and reviewed the next steps in negotiations for the proposed India-US bilateral trade agreement (BTA).The meeting took place on the sidelines of the 14th ministerial conference (MC14) of the World Trade Organisation in Yaounde, Cameroon, where both sides also exchanged views on issues related to the WTO agenda.“Had a very productive discussion with @USTradeRep Jamieson Greer on the sidelines of the WTO Ministerial Conference. Exchanged views on the #WTOMC14 agenda, next steps in the India-US BTA negotiations and explored ways to further deepen our economic cooperation and bilateral trade ties,” Goyal said in a social media post.The development comes amid ongoing efforts by both countries to finalise an interim trade pact. Last month, India and the US announced that they had finalised a framework for the first phase of the agreement, though it is yet to be signed.The two sides had earlier announced a trade deal on February 2, followed by a joint statement on February 7 outlining the contours of the agreement.As part of the framework, the US had agreed to reduce tariffs on Indian goods to 18%. However, the tariff structure has since undergone changes after the US Supreme Court struck down sweeping tariffs imposed under earlier measures.Following the ruling, US President Donald Trump introduced a 10% tariff on all countries for a period of 150 days starting February 24.In view of these developments, a planned meeting between chief negotiators of India and the US — aimed at finalising the legal text of the agreement — has been postponed. The pact was earlier expected to be signed this month.An official had earlier said that the interim trade agreement would be signed once the new global tariff framework of the US is fully in place.



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