Southwest Airlines has slashed its full-year 2026 adjusted earnings per share guidance to a range of $3.25 to $4.25, down from a prior forecast of at least $4, as rising jet fuel prices weigh on profitability. CEO Bob Jordan said the airline faces an estimated year-to-date fuel headwind of about $1.33 per share, with jet fuel averaging $3.92 per gallon in the second quarter and pushing fuel expense up by nearly $900 million compared to the same period last year. Despite the pressure, Jordan noted that earnings remain broadly in line with original expectations, while record second-quarter adjusted unit revenue growth of 20.1% and a 30% jump in managed business revenue underscore strong demand. The carrier also reported liquidity of $5.3 billion and nearly $2 billion in operating cash flow for the first half of the year.
Southwest Airlines CompanyRising jet fuel costs (supply input) drive profit guidance cut.