Southwest cuts 2026 profit forecast as fuel costs rise

Southwest Airlines cut its 2026 adjusted profit forecast to $2.60 to $2.85 a share, from $3.25 to $4.25 in July, after a third quarter that beat estimates with adjusted earnings of 66 cents a share on revenue of $8.42 billion.

Why it matters: Southwest is the third major US airline this month to cut its 2026 outlook on fuel, after Delta and United, which puts the cost of the Middle East conflict, and of Houthi attacks on Saudi infrastructure, directly into US airline earnings.

Data as of CNBC report of October 21, 2026, read in full, and Reuters report of October 21, 2026, read in full in syndication, both reporting Southwest's third quarter results published after the close on Wednesday, October 21, 2026. Developing item.

Southwest Airlines reported third quarter adjusted earnings of 66 cents a share, above the 58 cents analysts expected, on revenue of $8.42 billion, also above the $8.25 billion consensus, with net income of $270 million, up from $54 million a year earlier. The airline still cut its full year 2026 adjusted profit forecast to $2.60 to $2.85 a share from the $3.25 to $4.25 range it gave in July, citing higher fuel costs, and guided fourth quarter profit to 55 to 80 cents a share, below the 82 cents analysts expected.

Chief Executive Bob Jordan said demand remained strong as the airline lapped last year’s bag fee and other commercial changes, and Reuters reported Southwest expects fourth quarter fuel to average $4.55 a gallon on the October 15 forward curve. Average fares rose almost 27 percent in the quarter to $231.69, while revenue passengers carried fell 3.2 percent to 33.47 million.

Southwest cuts 2026 profit forecast as fuel costs rise

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