Southwest Airlines Company (NYSE:LUV) stock is trading volatile on Thursday. The company reported first-quarter earnings on Wednesday after the market closed.

What To Know: The airline reported an adjusted loss of 13 cents per share, beating analysts’ estimate of a loss of 18 cents per share. In addition, the company reported sales of $6.43 billion, beating analysts’ estimate of $6.40 billion.

The company broke down revenue further, stating passenger revenue increased 1.7% year-over-year and operating revenue increased 1.6% year-over-year.

The company ended the quarter with $9.3 billion in liquidity and $6.7 billion in excess outstanding debt.

Bob Jordan, President, CEO, and Vice Chairman of the Board of Directors, stated, ” We ran a stellar operation in first quarter, leading the industry in on time performance and improving on almost every operating metric, year-over-year. We are seeing positive results on recently rolled out initiatives, including the launch of Expedia as a new distribution channel and the further optimization of our loyalty program.”

Outlook: For the second quarter, the company expects available seat miles to rise 1% to 2% year-over-year. It projects fuel costs of $2.20 to $2.30 per gallon.

The company stated it is not reiterating its full-year 2025 or 2026 EBIT guidance, citing macroeconomic uncertainty. It said it is “difficult to forecast given recent and short-lived booking trends.”

“We expect to introduce basic economy and bag fees for most fare products next month and remain on track to begin selling assigned and extra legroom seats in third quarter 2025 for operation beginning in first quarter of next year,” Jordan added.

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LUV Price Action: At the time of writing, Southwest shares are trading 2.20% higher at $26.04, according to data from Benzinga Pro.

Image: Courtesy of Southwest Airlines Company