Southwest Airlines Company: Beat — EPS $0.66, Revenue $8.42B
Earnings BeatQ3 2026 · After-market
@trystockwhiz
Did Southwest Airlines Company (LUV) beat earnings today?
Yes, Southwest Airlines Company (LUV) beat Wall Street analyst expectations for Q3 2026, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+13.79% surprise
$0.66Actual
Expected: $0.58
vs. year ago +500.0%
Total Revenue+2.17% surprise
$8.42BActual
Expected: $8.24B
vs. year ago +21.2%
Released Oct 21 · 4:18 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $8.42B | $6.95B | +21.2% |
| Revenue detail — reported lines | |||
| └─Passenger | $7.75B | $6.31B | +22.8% |
| └─Freight | $48.00M | $42.00M | +14.3% |
| └─Other | $621.00M | $594.00M | +4.5% |
| Net Income | $270.00M | $54.00M | +400.0% |
| GAAP Basic EPS | $0.55 | $0.10 | - |
| GAAP Diluted EPS | $0.55 | $0.10 | - |
| Adjusted EPS | $0.66 | $0.11 | +500.0% |
Financial Outlook / Guidance
| Metric | 4Q 2026 Forecast | 2026 Forecast |
|---|---|---|
| Adjusted EPS | $0.55 to $0.80 | $2.60 to $2.85 |
| ASMs | 3% to 4% | — |
| RASM | 19% to 21% | — |
| CASM-X | 4.0% to 4.5% | — |
| Fuel Cost per Gallon | ~$4.55 | — |
| Capacity | — | ~1.2% (prev. ~1.5%) |
| Aircraft Deliveries | — | 67 Boeing 737-8 and 737-7 |
| Aircraft Retirements | — | ~60 |
| Net Capital Spending | — | $2.5B to $2.75B |
Business Highlights
- ➤Announced the Southwest Icon Lounge™ network, with first guests expected in 2027.
- ➤Became the first U.S. airline to offer flight shopping through ChatGPT.
- ➤Enhanced Rapid Rewards® with a Platinum tier, Milestone Rewards, and redemption partners.
- ➤Added a faster path to Rapid Rewards status through card spend.
- ➤Introduced Business Priority and NDC connectivity for corporate Customers.
- ➤Welcomed TAP Air Portugal and LOT Polish Airlines as airline partners.
- ➤Continued installing Starlink ultra-fast WiFi across all aircraft.
- ➤Expects fleet-wide Starlink installation to be complete in fall 2027.
- ➤Received 20 Boeing 737-8 aircraft and retired 20 aircraft during the quarter.
- ➤Returned $176M to shareholders through dividends.
- ➤Will host a Capital Markets Day in New York City on March 2, 2027.
Management Commentary
Bob Jordan, Southwest Airlines President & Chief Executive Officer
“Customers are responding to the enhanced Southwest offering, and it shows in our results. Demand remained strong as we lapped last year's bag fee and other commercial initiatives, reinforcing our belief that the earnings power we've built is durable, even with significantly higher fuel costs. With the transformation complete, our efforts have shifted to optimizing the business and delivering the next set of Customer Experience enhancements, both focused on unlocking the next phase of value creation. Robust demand has continued in the fourth quarter, and we are seeing encouraging progress across our product and loyalty initiatives. We remain confident in our ability to further strengthen earnings, improve returns, and expand margins over time. We look forward to sharing our multi-year financial framework, the targets we are managing toward, and our path to achieving them at our Capital Markets Day in New York City on March 2, 2027,”