Southwest Airlines lowers annual profit outlook amid fuel costs surge
LUV•Costs stayed below prior guidance
Operating expenses excluding fuel and special items rose 3.6% year over year, which the company said was below prior guidance.
The report also showed Q2 EPS of $0.47.
Southwest cuts full-year profit outlook
Southwest Airlines lowered its annual profit outlook as fuel costs surged, saying it now expects full-year 2026 adjusted earnings per share of $3.25 to $4.25, down from prior guidance of at least $4.00.
The airline also guided to third-quarter adjusted EPS of $0.50 to $0.75 and said it expects 2026 capacity growth of about 1.5%, down from prior guidance of 2%.
Second-quarter revenue missed expectations, EPS beat
The US airline said second-quarter operating revenue rose 16% year over year but missed analyst expectations. Southwest reported Q2 operating revenue of $8.40 billion versus a consensus estimate of $8.58 billion.
Adjusted EPS for the quarter was $0.94, beating the consensus estimate of . The company said margin expansion helped offset higher fuel costs.
