Core Insights - A severe winter storm has led to over 20,000 flight cancellations across the U.S. from Saturday to Monday morning, significantly disrupting air travel [1][6] - Major airports, including John F. Kennedy International and Newark Liberty International, are experiencing cancellation rates close to 50%, while Boston Logan Airport has rates around 60% [4] Impact on Airlines - The storm is expected to cause further travel disruptions, with an additional 4,300 flights canceled for Monday and over 10,400 delayed, particularly affecting airports in New York City, Boston, Philadelphia, and Washington, D.C. [2] - Airlines such as Delta Air Lines, United Airlines, American Airlines, and Southwest Airlines are waiving fees for ticket changes in affected cities, indicating a proactive approach to customer service during disruptions [5][6] Investor Considerations - The widespread flight cancellations and delays can lead to significant financial implications for airlines, potentially impacting their quarterly results negatively when reported to investors [3]

Southwest Airlines took first place in WSJ’s 18th annual airline scorecard for the first time since 2020. After finishing second to Delta in a photo finish for 2024’s rankings, Southwest this time won by a wide margin.⁠Read more: 🔗 https://t.co/q4xAoHtqEw https://t.co/OR1qPX4YRU ...

Southwest Airlines took first place in WSJ’s 18th annual airline scorecard for the first time since 2020. After finishing second to Delta in a photo finish for 2024’s rankings, Southwest this time won by a wide margin.⁠Read more: 🔗 https://t.co/q07bv3pZPT https://t.co/iifwNF5LsF ...

DALLAS, Jan. 23, 2026 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) invites you to listen to a live webcast of its fourth quarter and full year 2025 financial results. Details are as follows: When:              Thursday, January 29, 2026, at 10:00 AM Eastern Time Who:                Bob Jordan, President, Chief Executive Officer, and Vice Chairman of the Board of Directors Andrew Watterson, Chief Operating Officer Tom Doxey, Executive Vice President and Chief Financial Officer Web Addres ...

Core Viewpoint - Southwest Airlines Co. (LUV) is expected to report its fourth-quarter 2025 results on January 28, with a history of positive earnings surprises, averaging a beat of 259.13% over the last four quarters [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for LUV's fourth-quarter 2025 revenues is $7.52 billion, reflecting an 8.47% year-over-year growth [4]. - Management anticipates a 1% to 3% increase in unit revenues year-over-year, with capacity expected to rise nearly 6% [4]. - Passenger revenues are projected to increase by 7.8% compared to the fourth quarter of 2024, driven by strong domestic air-travel demand [5]. Earnings Estimates and Influencing Factors - The earnings estimate for LUV has been revised downward by 24.66% to 55 cents per share, indicating a 1.79% decline from the previous year [6][7]. - Factors such as geopolitical uncertainty, tariff pressures, and persistent inflation are expected to negatively impact LUV's operations [6][7]. - Increased labor costs and airport expenses are anticipated to pressure margins, with operating costs expected to rise by 5.9% year-over-year [9]. Cost Management and Efficiency - LUV expects its CASM-X (cost per available seat mile excluding special items) to increase by 1.5% to 2.5%, or remain flat to up 1% when excluding expected book gains from fleet transactions [10]. - The company is focused on driving efficiencies to mitigate inflationary pressures and achieve multi-year cost reduction targets [10]. Earnings Prediction Model - The earnings prediction model indicates a potential earnings beat for LUV, supported by a positive Earnings ESP of +7.27% and a Zacks Rank of 2 (Buy) [11].

Core Viewpoint - Southwest Airlines is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended December 2025, with actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for January 28, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus estimate for quarterly earnings is $0.55 per share, reflecting a year-over-year decrease of 1.8%, while revenues are projected to be $7.49 billion, an increase of 8% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 14.06% higher, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Southwest is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +7.27%, suggesting a bullish outlook on the company's earnings prospects [12]. Earnings Surprise History - In the last reported quarter, Southwest was expected to post earnings of $0.01 per share but actually reported $0.11, resulting in a surprise of +1,000.00% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Context - In the broader airline industry, American Airlines is expected to report earnings of $0.38 per share for the same quarter, indicating a year-over-year decline of 55.8%, with revenues projected at $14.07 billion, up 3% [18]. - The consensus EPS estimate for American Airlines has been revised down by 29.4% over the last 30 days, resulting in an Earnings ESP of -1.21%, making it challenging to predict a beat on the consensus EPS estimate [19].

Group 1: Cost Savings for Airlines - Airlines could save approximately $580 million annually due to reduced passenger weight from weight-loss drugs, leading to lower fuel costs [1] - The top four U.S. airlines—American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines—are expected to benefit from these savings [1] Group 2: Impact of Weight-Loss Drugs - The popularity of weight-loss drugs like Ozempic and Wegovy is rising in the U.S., contributing to the potential weight reduction among travelers [5] - Novo Nordisk is developing an oral version of Wegovy, which has recently been approved and launched, potentially increasing accessibility for patients who prefer not to use injections [8] Group 3: Market Reactions - The stock performance of major airlines shows mixed results, with Southwest Airlines slightly up by 0.05%, while United Airlines, Delta Air Lines, and American Airlines experienced declines of 2.18%, 1.28%, and 2.16% respectively [6]

Group 1 - The core viewpoint of the article is that the widespread use of GLP-1 weight loss drugs in the U.S. is expected to have a positive impact on society, particularly in reducing fuel costs for airlines [1] - Jefferies' report indicates that a 10% reduction in average passenger weight due to these drugs could lead to a 2% decrease in total weight for airline passengers, resulting in approximately 1.5% savings in fuel costs for airlines [1] - The report estimates that the four major U.S. airlines—American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines—could save about $580 million in fuel costs annually, given their total fuel expenditure of $38.6 billion this year [2] Group 2 - The analysis highlights that fuel costs are directly related to the total weight of the aircraft, which includes passengers, luggage, and cargo, emphasizing the airlines' ongoing efforts to reduce weight to control costs [1] - A specific example using the Boeing 737 Max 8 shows that a 10% decrease in average passenger weight could lower the total takeoff weight from approximately 82.2 tons to about 80.8 tons [1] - The potential increase in earnings per share for airlines is projected to be around 4% as a result of these fuel savings [1]

Core Viewpoint - Southwest Airlines Co. (LUV) is set to report its Q4 and full-year financial results on January 29th, with expectations for insights into the company's performance and future outlook [1]. Group 1 - The upcoming earnings report will provide crucial information regarding Southwest Airlines' financial health and operational performance for the last quarter and the entire year [1]. - The analysis suggests a focus on the company's growth, value, and dividend-paying aspects, indicating a balanced investment strategy [1].

Core Viewpoint - Southwest Airlines (LUV) shows potential as a strong investment opportunity due to a significant revision in earnings estimates, indicating an improving earnings outlook [1] Earnings Estimate Revisions - The trend of rising estimate revisions reflects growing analyst optimism regarding the airline's earnings prospects, which is expected to positively influence its stock price [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has demonstrated a strong track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3] - Analysts have reached a consensus on upward revisions for Southwest Airlines' earnings estimates, leading to a notable improvement in consensus estimates for both the next quarter and the full year [3] Current-Quarter Estimate - For the current quarter, Southwest Airlines is projected to earn $0.55 per share, reflecting a -1.8% change from the previous year [5] - Over the past 30 days, the Zacks Consensus Estimate for the company has increased by 8.68%, with one estimate moving higher and two going lower [5] Current-Year Estimate - For the full year, the expected earnings per share is $0.93, indicating a year-over-year change of -3.1% [6] - The consensus estimate has seen an increase of 18.22% over the past month, despite two negative revisions [7] Zacks Rank - The favorable estimate revisions have led to Southwest Airlines achieving a Zacks Rank 2 (Buy), indicating strong potential for investment [8] - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) tend to significantly outperform the S&P 500 [8] Investment Outlook - Strong estimate revisions have resulted in a 5.8% increase in Southwest Airlines' stock over the past four weeks, suggesting further upside potential [9] - The company may be a worthwhile addition to investment portfolios at this time [9]