Southwest's profits are down 42% this year but it's the top U.S. airline stock
Southwest's stock has gained nearly 24% so far this year, more than any other airline.
TL;DR
- Southwest Airlines' stock is up nearly 24% in 2025, exceeding other U.S. passenger carriers.
- The airline is transitioning from open seating to assigned seating, with options for extra legroom at an additional cost.
- These changes are expected to generate $1 billion in pretax earnings next year and $1.5 billion in 2027.
- Southwest has also recently eliminated two free checked bags and introduced basic economy fares.
- Profit forecasts were lowered due to decreased demand influenced by tariffs and a government shutdown.