Southwest Airlines cuts 2026 profit forecast on higher fuel
Southwest Airlines became the third major U.S. airline this month to cut its 2026 profit forecast due to higher fuel prices.
TL;DR
- Southwest Airlines cut its 2026 profit forecast because of higher fuel prices.
- The carrier now expects to earn between $2.60 and $2.85 a share this year, down from a previous forecast of $3.25 to $4.25 a share.
- Southwest reported third-quarter earnings per share of 66 cents, exceeding expectations of 58 cents.
- Third-quarter revenue was $8.42 billion, also surpassing Wall Street's expectations.
- The airline's average passenger fare increased by almost 27% to $231.69 in the third quarter.
- Southwest is changing its business model by introducing fees for seat assignments and checked bags.
- Delta Air Lines and United Airlines also lowered their profit outlooks for the year.