Southwest Airlines Co. reported a quarterly profit higher than analysts expected as leisure travel over the winter holidays and ticket prices both rose in the final three months of 2024.Adjusted earnings jumped to 56 cents a share in the period,

Southwest Airlines said Thursday that it faces higher costs in 2025 as inflation persists, but it managed to swing to a fourth-quarter profit due to a boost from lower fuel prices.

Southwest Airlines’ fourth-quarter profit exceeded Wall Street expectations, driven by strong travel demand and higher fares. The airline expects first-quarter unit revenue to exceed projections, indicating strong pricing power.

Southwest Airlines (LVU) put in a solid performance in the fourth quarter and forecast above-consensus revenue per available seat mile for the current quarter as the carrier absorbed surplus capacity across the industry with greater aircraft efficiency and higher airfares.