What can investors expect from LUV's upcoming earnings report?

**Southwest Airlines' (LUV) upcoming earnings report for Q1 2025 is expected to show a challenging period for the airline.** Here's what investors can anticipate: 1. **Expected Earnings Per Share (EPS) and Revenue**: - The estimated EPS for Q1 2025 is -$0.17, indicating a potential loss for the quarter. - The estimated revenue for the same period is $6.57 billion. 2. **Previous Performance and Outlook**: - Southwest Airlines reported mixed Q4 2024 earnings, with a Non-GAAP EPS of $0.56, which beat estimates, but revenue missed expectations at $6.9 billion. - Despite positive metrics, the airline's stock has slipped due to mixed Q4 results. - The airline has initiated a Q1 and FY25 outlook, with Southwest's economic fuel cost remaining stable at $2.42 per gallon, and fuel hedges covering 51% of Q1 2025 needs. 3. **Strategic Adjustments and Challenges**: - Southwest has faced rising labor costs and supply chain risks, which could impact margins in 2025. - The airline has navigated operational changes and planned for future expansions, achieving unprecedented first-quarter revenues and passenger numbers. 4. **Investor Considerations**: - Investors should be aware of the potential loss in Q1 2025, as indicated by the estimated EPS. - The airline's strategic adjustments and external factors like rising labor costs and supply chain risks could affect profitability. - The airline's commitment to enhancing shareholder value through dividends and share buybacks may provide some support to investors. In summary, while Southwest Airlines has shown resilience with previous earnings beats and strategic adjustments, the upcoming earnings report is likely to reflect the challenges of Q1 2025, including potential losses and the impact of rising costs and operational risks.