Southwest Airlines cuts 2026 profit guidance as fuel costs rise

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  • Southwest reported Q3 adjusted earnings per share of $0.66.
  • Operating revenue reached a record $8.42bn (€7.75bn).
  • Total fuel bill climbed $821m (€755m) year-over-year.
  • Southwest cut full-year guidance to $2.60 to $2.85 per share.
  • The carrier distributed $176m (€162m) in shareholder dividends.

Southwest Airlines has posted third-quarter 2026 results with record revenue and year-over-year margin expansion citing strong demand. The carrier reported adjusted earnings per share of $0.66 exceeding analyst consensus. Operating revenue reached a third-quarter record of $8.42bn (€7.75bn) marking a 21.2pc year-over-year increase.

Net income came in at $270m (€248m) while adjusted net income hit $328m (€302m). Revenue per available seat mile hit an all-time record surging 21.6pc year-over-year despite a minor capacity decline. Total fuel bill climbed $821m (€755m) year-over-year to $2.15bn (€1.98bn) impacting adjusted earnings.

Southwest cut its full-year 2026 guidance to $2.60 to $2.85 per share from its previously projected range. The carrier forecast fourth quarter adjusted earnings per share range of $0.55 to $0.80. Southwest concluded the quarter with $5.6bn (€5.15bn) in total liquidity and distributed $176m (€162m) in shareholder dividends.

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