Southwest Airlines Co. warned that costs will climb faster than expected as it grapples with heavy labor expenses, undercutting gains from strong demand for leisure travel.Non-fuel unit costs will rise as much as 9% in the first quarter after an 11% jump in the final months of last year,

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 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.