News Brief: Southwest Airlines
Summary
Despite a significant drop in profits this year, Southwest Airlines’ stock has outperformed all other U.S. carriers in 2025. Investors are optimistic about major strategic shifts—including new baggage fees, assigned seating, and extra-legroom seats—set to begin in early 2026, which are expected to substantially boost earnings in the coming years.
Key Points
- Profit vs. Stock Performance: Southwest’s profit fell 42% in the first nine months of 2025, yet its stock has risen nearly 24%, hitting a 2½-year high.
- Strategic Transformation: The airline is moving away from its traditional model by introducing assigned seating and extra-legroom seats (for a fee) starting January 27, 2026, and has already eliminated free checked bags.
- Financial Forecast: These initiatives are projected to generate $1 billion in pretax earnings in 2026 and $1.5 billion in 2027. Adjusted earnings per share could exceed $4 in 2026 and $6 in 2027.
- Challenges: Like rivals, Southwest cut its 2025 profit outlook due to weakened demand linked to tariffs, government cost-cutting, and the recent government shutdown.
新闻简报：西南航空
摘要
尽管今年利润大幅下滑，但西南航空的股价在2025年表现优于美国所有其他航空公司。投资者对其重大战略转变——包括新的行李费、指定座位和额外伸腿空间座位（将于2026年初开始实施）——持乐观态度，预计这些举措将在未来几年大幅提升收益。
关键点
- 利润与股价表现：西南航空2025年前九个月利润下降42%，但其股价上涨近24%，达到两年半以来的高点。
- 战略转型：该航空公司正在摆脱其传统模式，从1月27日起在其全波音737机队中引入指定座位和付费额外伸腿空间座位，并已取消免费托运行李政策。
- 财务预测：这些举措预计将在2026年带来10亿美元的税前收益，2027年达到15亿美元。调整后每股收益在2026年可能超过4美元，2027年超过6美元。
- 面临的挑战：与竞争对手一样，由于关税、政府削减开支以及最近的政府停摆导致需求疲软，西南航空下调了其2025年的利润预期。
Original Article Link: https://www.cnbc.com/2025/12/23/southwest-luv-airline-stocks.html