Southwest Airlines Co. has recently released its 10-K report, providing detailed insights into its financial performance and operations. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft and served 121 destinations in the United States, the District of Columbia, Puerto Rico, and ten near-international countries. The company also offers inflight entertainment and connectivity services, a loyalty program, and a suite of digital platforms to support customers' travel needs.
In its 10-K report, Southwest Airlines Co. highlighted its record full-year 2024 revenue performance, generating operating revenues of $27.5 billion. The company attributed this performance to continued demand strength, tactical actions related to initiatives announced in 2024, and record ancillary revenue and passengers carried. Additionally, the company returned $680 million to shareholders through dividend payments and an accelerated share repurchase program.
The company's financial results for the year ended December 31, 2024, showed operating income of $321 million and net income of $465 million on a GAAP basis. On a non-GAAP basis, operating income was $457 million, and net income was $597 million. The results for 2024 were affected by higher salaries, wages, and benefits expense, partially offset by lower fuel and oil expense due to lower jet fuel prices.
The operating statistics for the year ended December 31, 2024, showed a 2.0% increase in revenue passengers carried, a 4.6% increase in revenue passenger miles, and a 4.1% increase in available seat miles compared to 2023. The average passenger fare also increased by 3.6% to $178.40, and the load factor improved by 0.4 points to 80.4%.
Looking ahead to 2025, Southwest Airlines Co. provided selected financial guidance for the first quarter and full year. The company expects first quarter 2025 RASM to increase by 5% to 7% year-over-year and anticipates its CASM-X to increase by 7% to 9% year-over-year. The company also outlined its 2027 targets, including an operating margin of 3% to 5% and a return on invested capital (ROIC) after-tax of 5% to 8%.
As part of its modernization efforts, the company announced initiatives in 2024 aimed at elevating the customer experience, improving financial performance, and driving shareholder value. These initiatives include plans to assign seats, offer premium seating options, redesign the boarding model, and introduce redeye flying, marking a shift from its traditional open seating model.
Following these announcements, the company's shares moved -0.3%, and are now trading at a price of $31.0. Check out the company's full 10-K submission here.
