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Southwest Cuts 2026 Profit Target as Fuel Costs Surge
financeSkift··1 min·For: Owner, GM, Revenue, Investor

Southwest Cuts 2026 Profit Target as Fuel Costs Surge

Southwest Airlines lowered its 2026 adjusted earnings per share outlook from $4 to between $2.60 and $2.85 due to escalating jet fuel expenses. Despite rising operational costs, the airline is continuing upmarket expansion efforts, including airport lounges and potential long-haul international routes.

Key Takeaways

  1. 12026 adjusted EPS guidance reduced to $2.60-$2.85 from $4 amid rising fuel prices
  2. 2Q4 jet fuel costs projected to hit up to $4.55 per gallon, reflecting broader industry pressures
  3. 3Carrier continues upmarket push with new airport lounges, loyalty revamp, and potential long-haul flights

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Source: Skift

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