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The Zacks Analyst Blog Highlights American Airlines, Alaska Air Group, Southwest Airlines, JetBlue Airways and SkyWest
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For Immediate Release
Chicago, IL – May 2, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Airlines (AAL - Free Report) , Alaska Air Group (ALK - Free Report) , Southwest Airlines (LUV - Free Report) , JetBlue Airways (JBLU - Free Report) and SkyWest (SKYW - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Airline Stock Roundup: Q1 2025 Earnings Edition
The tariff-induced uncertainty continued to distort the earnings picture of airlines in the first quarter of 2025. With airline players like American Airlines, Alaska Air Group, Southwest Airlines, JetBlue Airways and SkyWest reporting results in the past week, the pain was well-reflected in the reports. The uncertainty also caused airlines like American Airlines to withdraw full-year 2025 projections.
Southwest Airlines also did not reaffirm its guidance for earnings before interest and taxes for 2025 and 2026. Southwest Airlines’ management stated that “Amid the current macroeconomic uncertainty, it is difficult to forecast given recent and short-lived booking trends.”
1. American Airlines’ first-quarter 2025 loss (excluding 13 cents from non-recurring items) of 59 cents per share was narrower than the Zacks Consensus Estimate of a loss of 69 cents. In the year-ago quarter, AAL had reported a loss of 34 cents per share. Operating revenues of $12.55 billion edged past the Zacks Consensus Estimate of $12.52 billion but decreased 0.2% year over year.
Passenger revenues, accounting for 90.8% of the top line, decreased 0.6% year over year to $11.4 billion. Passenger revenues were hurt by a slowdown in domestic leisure demand due to tariff woes. AAL expects earnings per share to be between 50 cents and $1 in the second quarter of 2025.
2. Southwest Airlines reported first-quarter 2025 loss of 13 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 18 cents. In the year-ago quarter, the company had incurred a loss of 36 cents per share.
Revenues of $6.42 billion beat the Zacks Consensus Estimate of $6.40 billion. The top line, however, improved 1.6% year over year. For second-quarter 2025, management expects available seat miles (a measure of capacity) to improve 1-2% from the year-ago reported figure.
3. Alaska Air reported first-quarter 2025 loss of 77 cents per share, wider than the Zacks Consensus Estimate of a loss of 72 cents. In the year-ago reported quarter, the company had incurred a loss of 92 cents per share.
Operating revenues of $3.14 billion missed the Zacks Consensus Estimate of $3.16 billion. The top line jumped 41% year over year, with passenger revenues accounting for 89.5% of the top line and increasing 40%. The company expects available seat miles to increase 2% to 3% in the second quarter of 2025 from the second quarter of 2024 actuals.
4. SkyWest reported better-than-expected first-quarter 2025 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved on a year-over-year basis.
Quarterly earnings per share of $2.42 outpaced the Zacks Consensus Estimate of $2.04 and improved 66% year over year. Revenues of $948.5 million beat the Zacks Consensus Estimate of $931.4 million and improved 18% year over year. Revenues from flying agreements (contributing 96.5% to the top line) grew 17.6% from the prior-year reported figure.
5. JetBlue Airways reported first-quarter 2025 loss of 59 cents per share, narrower than the Zacks Consensus Estimate of a loss of 61 cents. Lower fuel costs aided the bottom line. In the year-ago quarter, JBLU had reported a loss of 43 cents per share.
Operating revenues of $2.14 billion fell short of the Zacks Consensus Estimate of $2.15 billion and decreased 3.1% year over year. Passenger revenues, accounting for the bulk of the top line (92%), declined 3.1% year over year to $1.97 billion. For second-quarter 2025, capacity is anticipated to decline in the 0.5-3.5% band.
Airline Stocks Performance
The NYSE ARCA Airline Index decreased by 3% to $49.03 despite most airline stocks trading in the green over the past week. The Index’s downside was mainly due to the gains being subdued. Over the past six months, the NYSE ARCA Airline Index has decreased by 6.5%.
What’s Next in the Airline Space?
First-quarter 2025 earnings reports from some more airlines are expected in the coming days. Some April traffic reports are also anticipated shortly. Moreover, with signs of easing of trade tensions, investors keenly await further updates on the issue.
Why Haven't You Looked at Zacks' Top Stocks?
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights American Airlines, Alaska Air Group, Southwest Airlines, JetBlue Airways and SkyWest
For Immediate Release
Chicago, IL – May 2, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Airlines (AAL - Free Report) , Alaska Air Group (ALK - Free Report) , Southwest Airlines (LUV - Free Report) , JetBlue Airways (JBLU - Free Report) and SkyWest (SKYW - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Airline Stock Roundup: Q1 2025 Earnings Edition
The tariff-induced uncertainty continued to distort the earnings picture of airlines in the first quarter of 2025. With airline players like American Airlines, Alaska Air Group, Southwest Airlines, JetBlue Airways and SkyWest reporting results in the past week, the pain was well-reflected in the reports. The uncertainty also caused airlines like American Airlines to withdraw full-year 2025 projections.
Southwest Airlines also did not reaffirm its guidance for earnings before interest and taxes for 2025 and 2026. Southwest Airlines’ management stated that “Amid the current macroeconomic uncertainty, it is difficult to forecast given recent and short-lived booking trends.”
Read the last Airline Roundup here.
Recap of the Most Recent Important Stories
1. American Airlines’ first-quarter 2025 loss (excluding 13 cents from non-recurring items) of 59 cents per share was narrower than the Zacks Consensus Estimate of a loss of 69 cents. In the year-ago quarter, AAL had reported a loss of 34 cents per share. Operating revenues of $12.55 billion edged past the Zacks Consensus Estimate of $12.52 billion but decreased 0.2% year over year.
Passenger revenues, accounting for 90.8% of the top line, decreased 0.6% year over year to $11.4 billion. Passenger revenues were hurt by a slowdown in domestic leisure demand due to tariff woes. AAL expects earnings per share to be between 50 cents and $1 in the second quarter of 2025.
2. Southwest Airlines reported first-quarter 2025 loss of 13 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 18 cents. In the year-ago quarter, the company had incurred a loss of 36 cents per share.
Revenues of $6.42 billion beat the Zacks Consensus Estimate of $6.40 billion. The top line, however, improved 1.6% year over year. For second-quarter 2025, management expects available seat miles (a measure of capacity) to improve 1-2% from the year-ago reported figure.
LUV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3. Alaska Air reported first-quarter 2025 loss of 77 cents per share, wider than the Zacks Consensus Estimate of a loss of 72 cents. In the year-ago reported quarter, the company had incurred a loss of 92 cents per share.
Operating revenues of $3.14 billion missed the Zacks Consensus Estimate of $3.16 billion. The top line jumped 41% year over year, with passenger revenues accounting for 89.5% of the top line and increasing 40%. The company expects available seat miles to increase 2% to 3% in the second quarter of 2025 from the second quarter of 2024 actuals.
4. SkyWest reported better-than-expected first-quarter 2025 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved on a year-over-year basis.
Quarterly earnings per share of $2.42 outpaced the Zacks Consensus Estimate of $2.04 and improved 66% year over year. Revenues of $948.5 million beat the Zacks Consensus Estimate of $931.4 million and improved 18% year over year. Revenues from flying agreements (contributing 96.5% to the top line) grew 17.6% from the prior-year reported figure.
5. JetBlue Airways reported first-quarter 2025 loss of 59 cents per share, narrower than the Zacks Consensus Estimate of a loss of 61 cents. Lower fuel costs aided the bottom line. In the year-ago quarter, JBLU had reported a loss of 43 cents per share.
Operating revenues of $2.14 billion fell short of the Zacks Consensus Estimate of $2.15 billion and decreased 3.1% year over year. Passenger revenues, accounting for the bulk of the top line (92%), declined 3.1% year over year to $1.97 billion. For second-quarter 2025, capacity is anticipated to decline in the 0.5-3.5% band.
Airline Stocks Performance
The NYSE ARCA Airline Index decreased by 3% to $49.03 despite most airline stocks trading in the green over the past week. The Index’s downside was mainly due to the gains being subdued. Over the past six months, the NYSE ARCA Airline Index has decreased by 6.5%.
What’s Next in the Airline Space?
First-quarter 2025 earnings reports from some more airlines are expected in the coming days. Some April traffic reports are also anticipated shortly. Moreover, with signs of easing of trade tensions, investors keenly await further updates on the issue.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.