Southwest Airlines cuts profit forecast as fuel costs overshadow turnaround gains

Southwest Airlines lowered its 2026 adjusted earnings outlook on Wednesday, citing higher fuel expenses despite stronger fares and revenue from its business changes. The carrier now expects $2.60 to $2.85 per share, compared with its previous range of $3.25 to $4.25, and projected fourth-quarter earnings below Wall Street forecasts, Business Recorder reported.

Third-quarter revenue reached a record $8.4 billion as average fares rose nearly 27%, while adjusted earnings came in at 66 cents per share, above analysts’ 58-cent estimate. Fuel expenses were $821 million higher than a year earlier, and Southwest expects jet fuel prices to rise again in the final quarter; the company plans to share longer-term financial goals at an investor event in March. Its outlook highlights the pressure fuel costs are placing on US airlines even as fare increases lift revenue.