Southwest trims 2026 profit outlook as fuel costs rise

Southwest Airlines lowered its adjusted full-year 2026 earnings outlook, citing a sharp rise in fuel costs. The carrier now expects adjusted earnings of $2.60 to $2.85 per share, down from its July forecast of $3.25 to $4.25.

For the third quarter, Southwest reported adjusted earnings of 66 cents per share and revenue of $8.42 billion, both above the estimates cited by CNBC. Its average passenger fare reached $231.69, nearly 27% higher than a year earlier, while revenue passengers carried declined 3.2% to 33.47 million. CEO Bob Jordan said demand remained strong despite higher fares.

What does this mean for travelers? The results do not announce a specific route or schedule change, but higher fuel costs and fares can influence future ticket prices and airline planning. If you are booking a trip, compare the total fare and terms, and keep an eye on your airline’s updates. For airport pickups, base your timing on the confirmed itinerary and live flight status rather than assumptions about broader airline earnings.