Southwest Airlines Co. reported its second quarter 2025 financial results, showcasing a net income of $213 million, equating to an income of $0.39 per diluted share. When excluding special items, the net income was $230 million, or $0.43 per diluted share. The company highlighted a significant return of $1.6 billion to shareholders through share repurchases and dividends. Southwest Airlines also introduced bag fees, surpassing financial expectations without negative operational impact, alongside launching a new basic economy product structure. The company updated its full year 2025 guidance for earnings before interest and taxes, excluding special items, to be in the range of $600 million to $800 million. Additionally, the Board of Directors authorized a new $2.0 billion share repurchase program, expected to be completed over two years. The company is maintaining its target of $1.8 billion in incremental earnings before interest and taxes for 2025 and $4.3 billion for 2026, excluding special items. The recent industry demand shows signs of improvement, providing a positive outlook for the second half of the year.