EarningsQ2 2026 Earnings Report
MX:LUV Q2 2026 EPS Results
Actual EPS$16.12
Consensus EPS$8.74
Beat/MissBeat by +$7.37
One Year Ago EPS$7.37
MX:LUV Q2 2026 Revenue Results
Actual Revenue$144.56B
Expected Revenue$147.17B
Beat/MissMissed by -$2.61B
YoY Revenue Growth+16.40%
Earnings Announcement Details
QuarterQ2 2026
Date07/22/2026
TimeAfter Close
Conference CallWednesday, July 22, 2026
MX:LUV Upcoming Earnings
Southwest Airlines's next earnings date is estimated for October 21, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:LUV Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong operational and commercial turnaround: record revenues, double-digit unit revenue growth (20.1% YoY), wide engagement gains across loyalty and co-brand metrics, margin expansion to 6.7% despite nearly $900 million higher fuel expense in the quarter, and robust cash generation and liquidity. Management acknowledged elevated and volatile fuel costs (fuel headwind ~ $1.33 per share YTD) and a modest accounting breakage adjustment, plus some small-scale operational delays tied to product rollout. Guidance was updated (full-year EPS range narrowed/replaced), reflecting the fuel outlook but management emphasized demand durability, optimization opportunities, and ongoing margin expansion. Overall, the positive operational and commercial achievements substantially outweigh the challenges.Company Guidance
Record Revenue and Unit Revenue Strength
Adjusted operating revenue reached a record $8.7 billion (highest quarterly revenue in company history). Adjusted unit revenues (RASM) increased 20.1% year-over-year to an all-time quarterly record, exceeding the high end of prior guidance.
Strong Earnings and Margin Expansion
Adjusted EPS of $0.94 in Q2, up approximately 120% year-over-year. Adjusted operating margin improved to 6.7%, a 3.3 percentage-point improvement year-over-year, and after-tax return on invested capital was 9%.
Managed Business & Loyalty Momentum
Managed business revenues grew 30% year-over-year to a new quarterly record. Rapid Rewards new member enrollments rose 35% year-over-year and the program reached a record size of nearly 100 million members. Chase co-branded card acquisitions increased 28% year-over-year.
Cash Generation and Balance Sheet Strength
Generated nearly $2 billion in operating cash flow during the first half of 2026; Q2 operating cash flow was $500 million (more than 32% higher year-over-year). Ended the quarter with $5.3 billion in liquidity (above the ~$4.5 billion target) and a gross leverage ratio of 2.1x (improved from 2.4x at year-end 2025).
Cost Discipline
CASM-ex increased only 3.4% year-over-year on near-flat capacity (0.2% capacity growth in Q2), with management citing broad-based cost savings and hundreds of millions of incremental savings found since the beginning of the year (incorporated into full-year guidance).
Operational and Customer Recognition
Ranked #1 in customer satisfaction among economy passengers in the JD Power 2026 North America Airlines Satisfaction Study (fifth consecutive year). Southwest was named The Wall Street Journal's Best U.S. Airline of 2025. Completion factor ranked first among large domestic carriers in Q2, mishandled baggage improved year-over-year, and Trip Net Promoter Score improved during the quarter.
Product and Network Enhancements
First Starlink-equipped aircraft entered service, partner network expanded to nine carriers, and rollout to five announced new destinations completed (including launch of Anchorage service in May). Management highlighted ongoing optimization of network, pricing and product suite.
Forward Outlook and Q3 Guidance
Full-year 2026 adjusted EPS guidance updated to $3.25–$4.25 (reflecting the July 17 forward fuel curve). Third-quarter unit revenue growth guide of 17.5%–19.5% year-over-year with a strong exit rate from Q2; Q3 booked ~65% with yields running ~24% year-over-year at one point.
MX:LUV Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed