Southwest Airlines CEO calls 2024 a “foundational year” amid record revenues

January 30, 2025

Southwest Airlines has reported strong financial results for the fourth quarter (Q4) and full year of 2024, achieving record operating revenues. The low-cost carrier also announced a major US$750 million share repurchase programme and is anticipating a “conservative” delivery of 38 Boeing aircraft this year.
The airline’s quarterly and annual operating revenues were its highest ever recorded, reaching US$6.9 billion and US$27.5 billion, respectively. Revenue per available seat mile increased 8% year-on-year, driven by the strong execution of tactical initiatives.
Ending the year with liquidity of US$9.7 billion, exceeding its US$6.7 billion in outstanding debt, Southwest returned US680 million to shareholders through dividends and share repurchases. The low-cost carrier has also launched a US$750 million accelerated share repurchase scheme under its US$2.5 billion repurchase authorisation, with an initial US$250 million already completed.
Prior to providing his overview of the airline’s results as he addressed investors and media on 30 January, Bob Jordan, Southwest Airlines’ president and CEO, acknowledged the tragic accident involving an American Airlines flight operated by PSA Airlines near Reagan DCA Airport on 29 January, as he said: “While we are all competitors, we are one airline community, and we will do everything we can to support our friends in American and at PSA.”
Positive momentum for 2025
Turning his attention to Southwest’s 2024 earnings, Jordan expressed his optimism for the airline’s trajectory, citing a positive momentum from revenue initiatives and operational improvements. Describing 2024 as “a foundational year” he said, “we further invested in our operations, finalised our open labour contracts and laid out a comprehensive plan – ‘Southwest. Even Better’ – to boost our efficiency and lower costs, including the ability to operate red-eye flights and ensure faster aircraft turnarounds.”
Commenting that the airline is already seeing the benefits of the work carried out last year, Jordan emphasised “I am very pleased with the momentum we are carrying into 2025 as a result of last year’s efforts.”
He also referenced Southwest’s recent recognition in the Wall Street Journal as one of the top US carriers, with less than 1% of its flights cancelled and the lowest rate of tarmac delays, as testament to his team’s hard work. He also pointed to the airline’s strong year-on-year unit revenue improvement, which in Q4 came in 8% higher than the same period in 2023.
Providing an update on Southwest Airlines’ ‘Southwest. Even Better’ plan, Jordan said the initiative recently saw the airline reach an amended co-brand agreement with Chase enhancing benefits for Cardmembers and is supporting Southwest’s multi-year financial goals.
Earlier this month the airline also signed its first commercial agreement with Icelandair as its first partner carrier, which will take effect on 13 February. It also completed the IATA Operational Safety Audit (IOSA) and joined the IOSA registry for a two-year period, while Jordan reaffirmed the airline will launch its “Getaways by Southwest’ product later this year with MGM Resorts International in Las Vegas confirmed as its latest partner.
Fleet expansion
Looking at its fleet expansion and modernisation strategy, Jordan revealed he had met with Boeing’s leadership team last week and was “pleased with the progress [he] witnessed on the factory floor”. While he is “optimistic” about new aircraft deliveries, he did however caution, “its prudent we hedge our bets and are now planning a conservative 38 delivery assumption for 2025 to de-risk our operations.”
The airline, which currently operates a fleet of 803 aircraft had initially planned to take delivery of 136 new aircraft. However, it now expects to receive only 38 Boeing 737-8 aircraft this year, while retiring 51 aircraft, including 49 Boeing 737-700s and two Boeing 737-800s.
“Our imperative in 2025 is to deliver improved financial results and build further momentum to hit the milestones required to deliver on our 2026 and 2027 investor day targets and we’re committed to transparency and routine updates,” concluded Jordan.
“We’re in a great position to capitalise on our momentum and continue making progress towards our goals. We have a comprehensive plan, a detailed set of initiatives, a constructive industry backdrop and we are executing on our plans with urgency and purpose. We will not let up for even a moment as we move forward and deliver the Southwest. Even Better’ plan.”