Earnings disappoint, $2bn share repurchase

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07-24-2025 | 08:10 AM

khergan

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Earnings disappoint, $2bn share repurchase

https://www.cnbc.com/2025/07/23/southwest-airlines-luv-2q-2025-earnings.html

07-24-2025 | 08:45 AM

redhot

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Quote:

Originally Posted by khergan

https://www.cnbc.com/2025/07/23/southwest-airlines-luv-2q-2025-earnings.html

ouch, 30-40% less then last year for the same quarter.

07-24-2025 | 08:49 AM

Mozam

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They blame it on the new contracts in 2024. The ones that were expired in 2020. Sure would be nice if they took responsibility for their actions . Stock is down almost 15%. I’m guessing Wall Street does not believe the excuses.

07-24-2025 | 09:20 AM

flensr

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They're really counting on a huge 4Q. Even the analysts noticed and some of the first questions asked for justification of such an optimistic forecast for 4Q.

07-24-2025 | 02:47 PM

e6bpilot

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Quote:

Originally Posted by flensr

They're really counting on a huge 4Q. Even the analysts noticed and some of the first questions asked for justification of such an optimistic forecast for 4Q.

Guessing they already know that they really have to hit Q4 out of the park. Probably why there was so much debt paid down in Q2 and they can pretty well guess in advance based on forward bookings what it will look like. Also a lot of "revenue initiatives" really rev up that quarter. Not saying anyone is cooking the books, but a good CFO can definitely move things around to blow a single quarter out of the water. That would coincide with a big stock bump and Elliot's departure just as their cease fire agreement with the board is coming to an end.
They will be forced to pay a big dividend to go along with the buybacks as well. The company will survive just fine, but their cash reserves will be way lower than years past.

07-24-2025 | 02:51 PM

e6bpilot

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Quote:

Originally Posted by Mozam

Right? The costs are the costs. Just like fuel and airplanes, labor costs what it costs and blaming poor performance on that when two other airlines of slightly larger size absolutely crushed it is pretty lame.
Cost discipline is no longer how you make money as an airline. You run it like a smart business and take every opportunity to free up dollars from the customers that you have. Southwest is very late to that game.

07-26-2025 | 06:46 AM

ProLineFan

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From: *NO relief on scope*

Oh goody, I better make sure I keep that APU off as long as possible….we’ve got lots of stock to buy back!

07-26-2025 | 06:58 AM

meahPilot

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Quote:

Originally Posted by ProLineFan

Oh goody, I better make sure I keep that APU off as long as possible….we’ve got lots of stock to buy back!

APU should be on from clearing to before takeoff.

07-27-2025 | 03:43 AM

Crockrocket95

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Quote:

Originally Posted by meahPilot

APU should be on from clearing to before takeoff.

If only some of our guys understood the PC air doesn't work 99 percent of the time.... but sure, sweat it out....

im sure you'll get a call from a chief for using an APU... /S

07-27-2025 | 06:24 AM

#10

ZapBrannigan

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From: Boeing 737

Quote:

Originally Posted by Crockrocket95

If only some of our guys understood the PC air doesn't work 99 percent of the time.... but sure, sweat it out....

im sure you'll get a call from a chief for using an APU... /S

would help if they could get rid of the limitation against APU air with PC Air. Don't like waiting around for the next crew just to keep it cool for them