Southwest Airlines Faces Challenges Amid Earnings and Travel Demand Decline
Originally Published 5 months ago — by One Mile at a Time
Southwest Airlines reported a 42% drop in net income for Q2 2025 amid ongoing business model changes, including new bag fees and basic economy fares, which have had mixed financial impacts. Despite some revenue from bag fees exceeding expectations, the airline faces challenges with basic economy conversion rates and industry-wide profit declines. The company remains optimistic about its transformational initiatives and future profitability.