Southwest Airlines Co. (LUV) is set to report Q2 2025 results on July 24. The company has a strong earnings history, beating estimates in the past four quarters by an average of 67.06%. However, expectations for Q2 earnings have been revised downward by 1.92% to 51 cents per share, indicating a 12.07% decline from last year.

Factors like geopolitical uncertainty, tariff pressures, and inflation may impact LUV’s Q2 performance. Despite lower fuel costs, the company faces increased expenses from labor and airport costs. Revenue estimates for Q2 2025 stand at $7.30 billion, down 0.8% year-over-year, but partially offset by improving travel demand and lower fuel prices.

Southwest Airlines is facing challenges in Q2 2025 due to cost pressures and economic uncertainties. Oil prices have dipped, benefiting the industry, but factors like tariffs and production increases have contributed to downward pressure. Analysts predict a -4.39% Earnings ESP for LUV, suggesting a potential lackluster earnings report this quarter.

In Q1 2025, Southwest Airlines reported a loss of 13 cents per share, wider than expected. However, revenues of $6.42 billion beat estimates and showed a 1.6% improvement year-over-year. Stock analysts recommend SkyWest, Inc. (SKYW) and Knight-Swift Transportation Holdings Inc. (KNX) as potential outperformers in the transportation sector this quarter.

Read more at Nasdaq: Southwest Airlines to Report Q2 Earnings: What’s in the Cards?