Southwest Airlines Stock Falls As CFO Tom Doxey Warns Inflection Not Yet Back In The Industry

Shares of Southwest Airlines Co. (LUV) declined over 2% on Thursday after CFO Tom Doxey reportedly highlighted the weakness in demand for air travel.

“We have not seen in the industry an inflection back,” Doxey said at a Wolfe Research conference on Thursday, according to a Bloomberg report.

Doxey added that Southwest anticipates unit revenue falling more in the second quarter compared to the decline in the first quarter.

Last month, CEO Bob Jordan did not mince words when speaking about the industry’s current state. “I don’t care if you call it a recession or not, in this industry that’s a recession,” Jordan said, according to a Bloomberg report.

“When consumers are uncertain, they pull back,” Jordan had stated. “Consumers can immediately stop spending.”

Southwest was among the major airlines that pulled their full-year outlook due to economic uncertainty. The company’s net loss narrowed to $149 million for the quarter ended March 31, compared with a loss of $231 million a year earlier.

However, the stock found favor among investors after the airline announced that, for the first time, it would charge passengers to check bags.

The airline said it will continue to offer two free checked bags to its Rapid Rewards A-List Preferred Members and customers traveling on Business Select fares, and one free checked bag to A-List Members and other select customers.

Changes will apply to flights booked on or after May 28, 2025.

The airline has also been in the news as it took several actions to rein in costs after being targeted by activist investor Elliott Investment Management.

Shares of Southwest Airlines declined over 5% in 2025 so far, but have gained over 12% in the past 12 months.

Also See: Lawrence Summers Says US Looks Like A Developing Nation Where Stocks, Bonds, Currency Move Together: ‘That Has To Be Scary’

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on