Southwest Airlines (LUV) Q1 2026 Earnings

Southwest Airlines forecast 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 tried to increase revenue with checked baggage fees and seat assignment fees.

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

Airlines have been cutting their full-year forecasts or postponing additional forecasts due to volatile jet fuel prices, typically their biggest expense after labor. They are also backtracking on capacity growth plans to cut costs, which can increase airfares when fewer seats are on sale.

Southwest said it expects its capacity to remain stable at no more than 1% in the second quarter, and unit revenue to increase between 16.5% and up to 18.5% from last year.

Customers have shown they are willing to continue booking despite higher rates, CEO Bob Jordan told reporters Wednesday after the company reported 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, based on LSEG consensus estimates:

• Earnings per share: 45 cents versus 47 cents expected
• Revenue: $7.25 billion vs. $7.27 billion expected

Southwest posted 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 compared to $6.43 billion in the year-earlier period.