Southwest Airlines cut its 2026 profit forecast as higher fuel costs weighed on its outlook, CNBC reported Oct. 21. The airline now expects adjusted earnings of $2.60 to $2.85 a share for the year, down from the $3.25 to $4.25 range it forecast in July. CNBC said Southwest was the third major U.S. airline to lower its 2026 profit forecast that month, after Delta Air Lines and United Airlines.
The weaker forecast contrasts with Southwest’s third-quarter results. The airline reported adjusted earnings of 66 cents a share, above the 58 cents expected, and adjusted revenue of $8.42 billion, above the $8.25 billion expected, according to CNBC’s comparison with LSEG consensus estimates. Those are results for the quarter, not the revised forecast for all of 2026.
Southwest CEO Bob Jordan said travelers continued booking despite higher fares, CNBC reported. The airline’s average passenger fare was $231.69 in the third quarter, up almost 27% from a year earlier; a spokesman told CNBC that figure excluded add-on fees. Southwest has introduced bag fees and charges for many seat assignments as it changes its business model, CNBC reported.
Barron’s reported progress in Southwest’s turnaround alongside its better-than-expected quarterly earnings and revenue, but did not specify turnaround milestones in its opening account. Rising jet fuel costs, it reported, were behind the lower profit outlook.
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