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.

U.S. budget carrier Southwest Airlines' fourth-quarter profit surpassed Wall Street estimates on Thursday, helped by robust travel demand and improved airfares. The airline also forecast better-than-expected unit revenue (RASM),

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.