Southwest Airlines (LUV) Q1 2026 earnings
CNBC • • business
Key Points:
- Southwest Airlines forecasted second-quarter earnings between 35 and 65 cents per share, below analyst expectations of 55 cents, citing higher fuel prices as a key challenge.
- The airline has delayed updating its full-year 2026 earnings forecast, previously set at $4 per share, due to ongoing volatility in jet fuel costs.
- Southwest is aiming for flat to 1% capacity growth in Q2 and expects unit revenues to increase by 16.5% to 18.5% compared to last year.
- The airline continues to focus on managing costs, optimizing revenue through initiatives like checked bag and seat assignment fees, and prioritizing higher-return capacity opportunities amid strong demand.
- Industry-wide, airlines are cautious with forecasts and capacity growth plans due to fluctuating fuel prices, which remain a major expense after labor.
