Southwest Airlines (LUV) Q1 2026 earnings

Southwest Airlines While it predicted second-quarter earnings below analyst estimates, citing high fuel prices, it postponed updating its forecasts for the full year 2026.

Southwest expects to earn between 35 and 65 cents per share this quarter, while analysts polled by LSEG expect 55 cents per share.

The airline said in January that it expected its new initiatives to bear fruit, forecasting earnings per share of $4 this year. Southwest has sought to increase revenue through checked baggage fees and seat assignment fees.

“Achieving this outcome will require lower fuel prices and/or stronger revenue performance to offset higher fuel expenses. The Company expects to provide updates consistent with this guidance,” Southwest said in an earnings release Wednesday. he said.

Airlines are either lowering their full-year forecasts or postponing future forecasts due to volatility in jet fuel prices, which is generally their biggest expense after labor. They are also pulling back on capacity expansion plans to cut costs, which could increase airfares when fewer seats are sold.

Southwest said it expects capacity to increase no more than 1% in the second quarter and unit revenues to rise 16.5% from last year to 18.5%.

“Demand remains strong and we continue to focus on controlling what we can control by managing costs, optimizing revenue initiatives and redirecting capacity to higher return opportunities,” CEO Bob Jordan said in the earnings call.

Here’s what the company reported for the first quarter compared to Wall Street expectations, based on LSEG’s consensus estimates:

• Earnings per share: Expected 47 cents versus 45 cents.
• Revenues: 7.25 billion dollars, while the expectation was 7.27 billion dollars

Southwest had a first-quarter profit of $227 million, or 45 cents a share, compared with a loss of $149 million, or 26 cents a share, a year earlier.

Revenue rose nearly 13% to $7.25 billion, from $6.43 billion in the same period a year ago.