Business
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 Airlines‘ profit 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.
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.
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.
Business
Ads for British beef and milk banned following Chris Packham complaint
Two ads promoting British beef and milk have been banned after television presenter and environmental campaigner Chris Packham complained that they misled consumers about the products’ carbon footprints.
Both ads for the Agriculture and Horticulture Development Board’s (AHDB) Let’s Eat Balanced campaign used the carbon footprint of British beef and milk to promote the products, firstly stating: “British beef not only tastes great, but has a carbon footprint that’s half the global average*.”
The asterisk linked to text that stated: “Full lifecycle emissions of CO2 eq (carbon dioxide equivalent) per kg of beef.”
The ad for milk stated: “British milk not only tastes good, but is also produced to world-class standards, and has a carbon footprint a third lower than the global average.”
Packham complained to the Advertising Standards Authority (ASA) that the ads, and specifically the carbon footprint claims, were misleading as they did not reflect the full environmental impact of British meat and dairy.
The AHDB said the ads’ mention of carbon emissions would be understood in relation to the environmental impact of beef and milk that occurred between the “cradle-to-retail” stages.
But the ASA said the average consumer “being reasonably well-informed, observant and circumspect” would understand the claims to apply beyond the retail stage and include actions such as cooking and wastage.
The ASA said: “While we acknowledged the potential difficulties in producing post-retail emissions data, the claims in the ads suggested those emissions were included and we therefore expected the evidence provided to also include them.
“We therefore concluded that the evidence presented was insufficient to support the full life-cycle claims in the ads, which was how the average consumer was likely to interpret them.
“We reminded AHDB that environmental claims should be based on the full life cycle unless the ad stated otherwise.”
AHDB’s director of communications and market development, Will Jackson, said: “Let’s Eat Balanced is doing what it was designed to do, providing clear, factual, evidence-led information about British food, nutrition and farming standards.
“Since the investigation began, we have conducted independent consumer research which found that the majority of respondents interpreted these adverts as relating to the production phase only, from farm to retail.
“This research provides important insight into consumer understanding and supports our belief that consumers were not misled by the information we shared in these two specific adverts.”
Business
Gen Z pros embrace ‘portfolio careers’ as side hustles surge – The Times of India
BENGALURU: India’s Gen Z workforce is embracing what experts describe as “portfolio careers” – balancing multiple professional identities and income streams simultaneously. New research from LinkedIn shows that 75% of Gen Z entrepreneurs in India now manage multiple income streams, significantly higher than the 62% among Gen X entrepreneurs. The findings point to a growing preference among younger professionals for flexibility, autonomy and diversified sources of income. “We’re also seeing the rise of the ‘portfolio era’, with more professionals creating multiple income streams and redefining what a career can look like. This shift is making entrepreneurship more accessible than ever before,” said LinkedIn India country manager Kumaresh Pattabiraman.Rather than depending on a single full-time role, many professionals are simultaneously building businesses, freelancing, consulting, creating online content and monetising specialised skills through digital platforms. The trend comes amid a broader rise in entrepreneurial activity in India. LinkedIn recorded a 104% year-on-year increase in members adding “Founder” to their profiles – the highest growth among all global markets.AI is also emerging as a major enabler of this shift. The report found that 85% of Gen Z entrepreneurs consider AI and digital tools important to their business operations.
Business
Elon Musk said control of OpenAI should go to his children, Sam Altman tells jury
Sam Altman said Elon Musk tried many times for total control of OpenAI, which he’s now suing.
Source link
-
Tech1 week agoDHS Demanded Google Surrender Data on Canadian’s Activity, Location Over Anti-ICE Posts
-
Business1 week agoHeineken plans huge investment in hundreds of UK pubs ahead of World Cup
-
Tech5 days agoA new frontier: Identity stack evolves for agentic systems | Computer Weekly
-
Tech4 days ago‘Orbs,’ ‘Saucers,’ and ‘Flashes’ on the Moon: Pentagon Drops New UFO Files
-
Business1 week agoIndia among most resilient large EMs, better placed for future global shocks; policy reforms & strong buffers help: Moody’s – The Times of India
-
Fashion5 days agoNew orders in German manufacturing up 5% MoM in Mar 2026: Destatis
-
Tech5 days agoWhat Microsoft Executives Really Thought About OpenAI in 2018
-
Sports5 days agoShaheen Afridi achieves landmark feat during opening Test against Bangladesh
