Southwest Airlines has lowered its 2026 profit forecast, citing higher fuel costs, even as demand remains strong and fares rise.
01Summary
- 01Southwest expects 2026 adjusted earnings of $2.60 to $2.85 per share, down from July's forecast of $3.25 to $4.25.
- 02Third-quarter net income was $270 million, or 55 cents per share, up from $54 million a year earlier.
- 03Average passenger fare reached $231.69 in Q3, up nearly 27% year-on-year, though revenue passengers fell 3.2% to 33.47 million.
- 04The airline forecasts Q4 adjusted earnings of 55 to 80 cents per share and unit revenue growth of up to 21%.
- 05CEO Bob Jordan said demand remains strong despite higher fares and fuel costs, citing durable earnings power.
02Why it matters
This profit warning signals that rising fuel costs are squeezing major US airlines, potentially leading to higher ticket prices for travellers.
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