Summary by Futu AI
Southwest Airlines reported record revenue of $27.5B for 2024, marking a 5.3% YoY increase. The company achieved GAAP operating income of $321M, up 43.3% YoY, while non-GAAP operating income decreased 48.8% to $457M. Net income remained flat at $465M on a GAAP basis, with diluted EPS holding steady at $0.76.The airline executed significant fleet modernization initiatives, including a sale-leaseback of 35 737-800 aircraft and placed orders for 496 MAX aircraft through 2031. The company maintained operational efficiency with a fleet of 803 Boeing 737 aircraft and 72,450 active full-time equivalent employees, while achieving a 1.6% improvement in fuel efficiency YoY.Looking ahead to 2025, Southwest projects capacity growth of 1-2% and capital expenditure of $2.5-3.0B. The company has set ambitious 2027 targets, including operating margins of ≥10%, annual free cash flow exceeding $1B, and return on invested capital of ≥15%. Management expects operating margins of 3-5% for 2025, excluding special items.
