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Southwest Airlines (LUV) 3Q 2026 earnings
CNBC • • business
Key Points:
- Southwest Airlines lowered its 2026 profit forecast to an adjusted $2.60-$2.85 per share, down from the previous $3.25-$4.25 range, citing higher fuel prices, though CEO Bob Jordan noted strong traveler demand despite increased fares.
- The airline reported third-quarter adjusted earnings of 66 cents per share, surpassing the expected 58 cents, and revenue of $8.42 billion, beating the anticipated $8.25 billion.
- Southwest expects fourth-quarter adjusted earnings between 55 and 80 cents per share, with unit revenue potentially rising up to 21% year-over-year, and plans to increase capacity by up to 4%.
- The average passenger fare in Q3 rose nearly 27% to $231.69 compared to the same period in 2025, while the number of revenue passengers decreased by 3.2% to 33.47 million.
- To boost revenue, Southwest has revamped its business model by eliminating free checked bags and open seating, introducing fees for seat assignments and baggage similar to other major airlines.
