Southwest Airlines (LUV) First Quarter 2026 Results

Southwest Airlines forecasts second-quarter earnings below analyst estimates, citing higher fuel prices, while delaying updating its full-year 2026 forecast.

Southwest expects to earn between 35 cents and 65 cents per share in the current quarter, while analysts surveyed by LSEG expected 55 cents per share.

In January, the airline forecast earnings per share of $4 this year, saying it expected its new initiatives to bear fruit. Southwest has sought to increase revenue through checked bag fees and seat assignment fees.

“Achieving this outcome would require lower fuel prices and/or improved revenue performance to offset higher fuel expenses. The company plans to provide updates to this guidance as appropriate,” Southwest said in an earnings release Wednesday.

Airlines have either reduced their full-year forecasts or postponed their forecasts due to volatile prices for jet fuel, typically their biggest expense after labor. They are also scrapping capacity growth plans to cut costs, which can drive up airfares when fewer seats are for sale.

Southwest said it expects capacity to be flat or not increase more than 1% in the second quarter, and for unit revenue to rise 16.5% to 18.5% from a year ago.

Customers have shown they are willing to continue booking despite higher rates, CEO Bob Jordan told reporters Wednesday after the company released the results.

“Demand is really strong…strong across all sectors,” he said..

Here’s what the company reported for the first quarter compared to Wall Street expectations, according to LSEG consensus estimates:

• Earnings per share: 45 cents versus 47 cents expected
• Income: $7.25 billion versus $7.27 billion expected

Southwest reported a profit of $227 million, or 45 cents per share, in the first quarter, compared with a loss of $149 million, or a loss of 26 cents per share, a year earlier.

Revenue rose nearly 13% to $7.25 billion from $6.43 billion a year earlier.