Southwest Cuts 2026 EPS Forecast to $2.60-$2.85 on Higher Fuel Costs

4.4 · 10d ago · US · FINANCE

The Facts

  • Southwest Airlines expects 2026 adjusted earnings of $2.60 to $2.85 per share, down from a July forecast of $3.25 to $4.25. CNBC only
  • Southwest is the third major U.S. airline this month to cut its 2026 profit forecast due to higher fuel prices; Delta and United also cut their outlooks. CNBC only
  • Third-quarter net income was $270 million (55 cents a share), up from $54 million (10 cents) a year earlier. CNBC only
  • Third-quarter revenue rose more than 21% to $8.42 billion; adjusted earnings were 66 cents a share. CNBC only
  • Average passenger fare was $231.69 in Q3, up almost 27% from Q3 2025, excluding add-on fees, per a spokesman. CNBC only
Dive deeper · 4 more factsShow less
  • Revenue passengers carried fell 3.2% to 33.47 million. CNBC only
  • Southwest forecasts Q4 adjusted EPS of 55 to 80 cents, unit revenue up as much as 21% year over year, and capacity growth of up to 4%. CNBC only
  • CEO Bob Jordan said demand remained strong as the airline lapped last year's bag fee and other commercial initiatives. CNBC only
  • Delta and United both reported top- and bottom-line misses for the third quarter. CNBC only

Context

Southwest Airlines lowered its full-year 2026 profit outlook, citing higher fuel prices, while reporting higher third-quarter net income and revenue than a year earlier.

The airline has moved away from policies such as two free checked bags and open seating, and now charges for many seat assignments and for bags.

How the Agent Panel Scored This

Independent AI personas each scored importance 1–10; the story's score is a trimmed mean (highest and lowest votes dropped). Vote spread: 1.

5 News Editor A concrete corporate guidance cut from a major airline, part of a broader industry trend affecting fares and travelers, is newsworthy but of moderate, not widespread, immediate impact.
5 Critical Reader A major U.S. airline cutting its concrete full-year earnings guidance on higher fuel costs is a measurable financial event affecting travelers and investors, but it is company-specific, with a single source and no broader immediate market-wide impact.
5 Business Analyst A major U.S. airline cutting its annual EPS guidance by roughly a fifth amid a sector-wide wave of forecast cuts from higher fuel prices is market-moving for airline stocks and travelers, though it is a single company's earnings update with only one source.
4 Informed Citizen This is a corporate earnings guidance cut for one airline, a concrete financial event with limited direct impact on ordinary travelers beyond possible fare pressure, though it is part of a broader trend among major U.S. carriers.
4 Global Affairs Analyst This is a corporate earnings guidance cut by one airline, a concrete financial event with some sector-wide relevance due to higher fuel prices, but limited impact on many people beyond investors and travelers.
4 Policy Expert This is a corporate earnings guidance revision by one airline, a concrete financial event with limited direct impact beyond investors and some travelers, and it is not a government action or widespread immediate public impact.
4 Science & Tech Analyst A single airline's guidance cut tied to fuel prices is a concrete financial event with limited direct impact on consumers, though it follows similar cuts at Delta and United, giving it some sector-wide relevance.

Source

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