Southwest Airlines trims 2026 profit outlook as fuel prices surge

Southwest Airlines posted a third-quarter net income of $270 million, or 55 cents per share, on record revenue of $8.4 billion, but fuel prices surged to $3.92 a gallon, up 63.3% from the prior year and exceeding the airline’s $3.70-$3.75 forecast. The spike added $821 million to fuel expenses, creating a $1.08 headwind to adjusted earnings per share. Consequently, Southwest revised its full-year profit outlook, now expecting adjusted earnings of 55 to 80 cents per share for the fourth quarter and a modest 1.2% capacity increase for 2026.

CEO Bob Jordan highlighted that passenger demand stayed robust, with average fares rising 26.9% to $231.69. The airline’s guidance assumes fuel will average about $4.55 a gallon in the fourth quarter. Southwest joins Delta Air Lines and United Airlines, which also lowered their 2026 forecasts, as carriers brace for elevated fuel costs through 2027.