Southwest Airlines lowers 2026 profit guidance

On October 22, 2026, Southwest Airlines lowered its 2026 earnings guidance, expecting full-year adjusted earnings per share of between $2.60 and $2.85, compared with a prior expectation of $4. The company attributed the guidance cut to higher fuel costs, expecting fourth-quarter jet fuel prices of up to $4.55 per gallon, and fourth-quarter adjusted earnings per share of 55 to 80 cents. On October 23, Southwest executives said on the earnings call that third-quarter managed corporate travel revenue grew 29% year over year, with business passenger volume up about 9% while capacity was roughly flat; quarterly passenger revenue grew nearly 23% year over year to about $7.8 billion, total revenue rose more than 21% to $8.4 billion, and net profit was $270 million. The company expects fourth-quarter capacity to grow 3% to 4% year over year, and to take delivery of 67 new aircraft and retire 60 aircraft for the full year.