Southwest cuts 2026 profit forecast as fuel costs rise

Southwest Airlines cut its 2026 profit forecast as higher fuel prices put pressure on earnings.

The airline now expects adjusted earnings of $2.60 to $2.85 per share, down from its July forecast of $3.25 to $4.25.

Delta and United also lowered their forecasts this month, making Southwest the third major US airline to do so.

Even as costs rise, CEO Bob Jordan said travel demand remains strong despite higher fares.

Southwest’s average passenger fare was $231.69 in the third quarter, nearly 27% higher than a year earlier, while the number of passengers it carried fell 3.2%.

The airline beat expectations for third-quarter earnings and revenue, reporting adjusted earnings of 66 cents per share and revenue of $8.42 billion.

Southwest forecasts fourth-quarter adjusted earnings of 55 to 80 cents per share and expects to increase capacity by up to 4% year over year.