Southwest Announces More Bad News Amid 'Uncertainty'
Southwest Airlines provided some insight into its current state of affairs with a new Securities and Exchange Commission (SEC) filing. According to The Street on April 24, the airline's first quarter did not go as they hoped.
The media outlet reported that, according to an April 23 SEC filing, Southwest Airlines had a net loss of $149 million during the first quarter of 2025.
The filing also indicated that Southwest expects the decline in revenue to continue through the second quarter. Southwest forecasts a decrease of revenue of 4% during the second quarter compared to the same time last year.
Within the filing, the organization noted, "Amid the current macroeconomic uncertainty, it is difficult to forecast given recent and short-lived booking trends."
The Street noted that Southwest Airlines' total revenue increased slightly over the prior year. However, costly issues impacted the company's bottom line. Issues with delayed Boeing plane deliveries were a factor, as were a drop in total travelers and an increase in oil prices.
The bad news from the SEC filing came in the wake of significant changes by Southwest Airlines. The organization is eliminating its "bags fly free" perk, announcing that fees will begin to apply to tickets booked or changed after May 28.
In addition, View From the Wing noted that Southwest Airlines is putting a restriction on how long customers have to use their travel credits.
Going forward, credits will expire after 12 months rather than never expiring. Credits from Basic Economy tickets will expire six months after the date of the ticket purchase.
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