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Southwest Airlines Q3 2026 Earnings

In short

Southwest Airlines reported third-quarter earnings of $270 million, or $0.55 per share, which significantly exceeded last year's $54 million profit. Despite beating analyst estimates and achieving record revenue, the company lowered its full-year 2026 profit outlook due to rising fuel costs.

In plain words

The airline made much more money this quarter than it did a year ago. However, because jet fuel is becoming much more expensive, the company expects to make less profit for the rest of the year.

A simple example

While the airline earned record revenue from ticket sales, it expects to pay as much as $4.55 per gallon for fuel in the final quarter of the year.

Why it matters

These results show that while passenger demand remains strong, airlines are highly vulnerable to volatile energy prices. The lowered guidance reflects a broader trend among major US carriers facing expensive fuel bills.

Easy to mix up

Do not confuse the strong third-quarter profit beat with the company's overall yearly outlook, which has actually been downgraded.

Sources

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