Guidance update on fuel prices and earnings
- Due to volatility of jet fuel prices, the company is introducing a new policy to base its guidance on the most current fuel prices.
- For Q3, the company assumes an all-in average fuel price per gallon of about $3.69 based on the Gulf Coast jet forward curve as of July 14, 2026.
- Q2 average fuel price per gallon was $4.19.
- Since the beginning of July, fuel for the company increased $575 million, or $1.12 in adjusted diluted earnings per share for the third quarter alone.
- The company expects nearly $6 billion in added fuel expense for full-year 2026 compared with the expectation at the start of the year.
- It expects to recover 80% to 90% of the fuel price increase in Q3 and 100% of the fuel price increase by Q4.
- If fuel prices return to early July prices, the company expects to be above the high end of its adjusted EPS guidance range for both Q3 and FY 2026.
- Q3 earnings per share view is $3.60 — LSEG IBES data.
- FY2026 earnings per share view is $10.46 — LSEG IBES data.
Quarterly performance, liquidity and capacity
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