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Southwest Airlines cuts 2026 profit forecast on higher fuel
Southwest Airlines cuts its 2026 profit forecast due to higher fuel prices.
Key points
- Southwest Airlines lowered its 2026 adjusted earnings forecast to between $2.60 and $2.85 a share.
- Third quarter adjusted earnings were 66 cents per share on revenue of $8.42 billion.
- The average passenger fare in the third quarter rose almost 27% from the same quarter of 2025 to $231.69.
Why it matters. Higher fuel costs are forcing major U.S. airlines to reduce profit forecasts even as passenger demand remains strong.
Southwest Airlines has lowered its 2026 profit forecast due to rising fuel prices, becoming the third major U.S. airline to do so this month. CEO Bob Jordan stated that traveler demand remains strong despite higher fares. The company now expects adjusted earnings between $2.60 and $2.85 a share for the year.
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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. A Southwest Airlines Boeing 737 airplane departs from San Diego International Airport on May 27, 2026. Kevin Carter | Getty Images News | Getty Images Southwest Airlines became the third major U.S. airline this month to cut its 2026 profit forecast due to higher fuel prices, but CEO Bob Jordan said travelers continue to book despite higher fares. The carrier expects to earn between $2.60 and $2.85 a share on an adjusted basis this year, down from its forecast in July of between $3.25 to as much as $4.25 a share. Here's what Southwest reported for third quarter compared with Wall Street expectations, according to consensus estimates from LSEG: Earnings per share: 66 cents adjusted vs. 58 cents expected Revenue: $8.42 billion adjusted vs. $8.25 billion expected Southwest forecast per-share adjusted earnings of between 55 cents and 80 cents in the fourth quarter and unit revenue, a gauge of airfare, up as much as 21% from a year earlier. It said it expects to grow capacity by up to 4% year over year. "Demand remained strong as we lapped last year's bag fee and other commercial initiatives, reinforcing our belief that the earnings power we've built is durable, even with significantly higher fuel costs," Jordan said in an earnings release. The airline said its.