Southwest Slashes 2026 Profit Outlook on Rising Fuel Costs
LUV sits 35% above its 52-week low of $29.26.
Summary
Southwest cut its 2026 adjusted EPS forecast to $2.60-$2.85 a share from July's $3.25-$4.25, blaming higher fuel prices. The midpoint drops roughly 25% and puts full-year earnings well below what the Street had been modeling. The cut lands the same evening as a strong Q3: adjusted EPS of $0.66 beat the $0.58 consensus and revenue of $8.42 billion topped the $8.25 billion expected, with unit revenues up 21.6%. Southwest is the third major U.S. airline this month to lower its 2026 outlook, so the fuel-cost squeeze is industry-wide rather than company-specific. The Q3 beat is already priced; the guidance reset is what changes the earnings picture for the next two quarters.
At the time of this announcement, LUV was trading at $39.61 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $19.5B. The 52-week trading range was $29.26 to $55.11. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Binance News.