Southwest Airlines earnings date
Southwest Airlines (LUV) Q3 2026 Earnings Report
MX:LUV Q3 2026 EPS Results
- Actual EPS
- MXN 12.28
- Consensus EPS
- MXN 10.62
- Beat/Miss
- Beat by +MXN 1.66
- One Year Ago EPS
- MXN 2.05
MX:LUV Q3 2026 Revenue Results
- Actual Revenue
- MXN 156.65B
- Expected Revenue
- MXN 153.46B
- Beat/Miss
- Beat by +MXN 3.18B
- YoY Revenue Growth
- +21.20%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- After Close
- Conference Call
- Wednesday, October 21, 2026
Southwest Airlines's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive. Southwest reported record revenue and RASM, year-over-year margin expansion despite a substantial fuel headwind, strong business and consumer demand, disciplined capacity deployment, and multiple customer and loyalty initiatives that management said are already producing encouraging results. The main challenges were higher fuel costs, expected fourth-quarter unit-cost growth, lower-than-target on-time performance, and acknowledged gaps in premium and long-haul international offerings, but management expressed confidence in continued earnings and margin growth.
Southwest expects fourth quarter RASM to increase 19% to 21% year over year, with approximately 65% of fourth quarter revenue already booked; fourth quarter CASM-X to increase 4% to 4.5% year over year on capacity of 3% to 4%; fourth quarter adjusted earnings per share of $0.55 to $0.80 based on an average fuel price of approximately $4.55 per gallon using the forward curve as of October 15; and full year 2026 adjusted earnings per share of $2.60 to $2.85, approximately 67 new aircraft deliveries, 60 retirements, and net capital spending of $2.5 billion to $2.75 billion. Total gains on sale from retiring assets and sale leasebacks in the fourth quarter are expected to be broadly similar to those seen in the first and second quarters of this year, while gains from sale are also forecast to be lower sequentially in the fourth quarter. Southwest anticipates year over year unit cost growth to moderate from fourth quarter levels as it moves into Q1 and next year, expects earnings growth as it moves into 2027, and expects 2027 total deliveries to be higher than in 2026 and an increased level of retirements next year; specific 2027 guidance will be provided in 3 months. Management also said the $1 billion of EBIT from seat assignments and extra legroom seats in 2027 remains on track, if not ahead, and that the $1 billion discussed for bags has tracked, with bag fees increased a bit.
- Record Revenue and Margin ExpansionThird-quarter operating revenue reached a record $8.4 billion. Adjusted operating margin was 5.4%, up 4.8 points year over year, despite an $820 million year-over-year headwind from higher fuel prices. Southwest stated it expects to be the only major U.S. carrier to deliver year-over-year margin expansion in the quarter.
- Adjusted Earnings Beat GuidanceAdjusted earnings per share were $0.66, up 5% year over year and above the midpoint of guidance, despite a less favorable fuel environment than anticipated. Fuel costs were $109 million, or $0.14 of EPS, higher than the assumptions underlying the prior guidance.
- Strong Demand and Record Passenger RevenueDemand remained strong across all geographies and products, including managed business, leisure, loyalty, and co-brand. Southwest generated record third-quarter passenger revenue and achieved the highest passenger yield in its history.
- Record RASM PerformanceThird-quarter RASM increased 21.6% year over year, exceeding the high end of the 17.5% to 19.5% guidance range and setting an all-time record. Passenger fares were approximately $3 above forecast, passenger volumes exceeded expectations, and September produced record passenger-yield RASM.
- Fourth-Quarter Revenue Outlook Remains StrongSouthwest expects fourth-quarter RASM to increase 19% to 21% year over year. Approximately 65% of fourth-quarter revenue was already booked, with demand described as healthy and broad based, corporate demand performing well, and the pricing environment remaining constructive.
- Managed Business Performance AcceleratedThe quarter included 20 of the top 50 corporate booking days in company history, and two of the three months set records for unique managed business travelers flown. Managed business passenger revenue growth improved sequentially in every quarter of 2026, while new and reactivated travelers both grew at double-digit rates. Business passengers increased roughly 9% and business revenue increased 29% on essentially flat capacity.
- Network Optimization and Connectivity GainsSouthwest is concentrating capacity in its strongest markets, including Nashville, Las Vegas, Orlando, and San Diego, while reallocating capacity from lower-performing markets. Redesigned airport banks, expanded red-eye flying, partnerships, assigned seating, extra-legroom offerings, tailored offers, and dynamic pricing are supporting the strategy. Connecting traffic growth offset some local load-factor decline, while September yield increased more than 20% year over year and load factor also increased.
- Commercial Initiatives Are Driving Higher Customer MonetizationBuy-up activity is dramatically above historical levels. Southwest said it is optimizing total customer revenue across fare upsell and standalone seating rather than focusing on a single buy-up percentage, and stated that there is still considerable opportunity to improve merchandising, product pricing, and digital upgrade capabilities.
- Rapid Rewards ExpansionBeginning January 1, Southwest plans to introduce a new Platinum tier, enhanced benefits along the path to status, and additional co-brand credit-card engagement opportunities. International loyalty partnerships and partner redemptions are planned for next spring, while point redemption for ancillary purchases, including seat selection, is planned to follow later in 2027. Management described the initiatives as providing meaningful upside to loyalty economics.
- Customer Experience Investment PipelineSouthwest continues installing Starlink high-speed Wi-Fi across its fleet, with the fleet-wide rollout expected to be complete by this time next year and free access available to Rapid Rewards members. The company also expects to complete key cabin retrofits, including in-seat power, open its first premium ICON lounges, launch a new premium co-brand credit card, expand Rapid Rewards, and introduce additional airline loyalty partnerships within less than a year.
- ICON Lounge and Premium Card PlansICON lounges are under construction in Baltimore, Honolulu, and Nashville, with at least seven additional locations planned. Southwest expects to welcome its first lounge guests in the fourth quarter of next year. The lounge network will support a new premium credit card launching in 2027, giving Southwest an opportunity to participate in the premium co-brand segment for the first time.
- Technology and Distribution ExpansionSouthwest became the first U.S. airline to make flight shopping available through ChatGPT. Management said the integration is an early exploration of how customers use AI for travel inspiration and booking; current numbers are small, but the company expects to use the learnings to adapt its distribution approach.
- Disciplined Cost and Balance-Sheet PerformanceThird-quarter CASM-X increased 3.8% year over year on capacity down 0.4%, within the guidance range. Southwest ended the quarter with $5.6 billion of liquidity and a 1.9x gross leverage ratio, within its stated 1x to 2.5x range. The company also entered into a new $2 billion revolving credit facility maturing in 2031, replacing a previous $1.5 billion facility.
- Fleet Monetization and Capital FlexibilitySouthwest generated $285 million in cash proceeds and recognized $96 million of gains from the sale of retiring aircraft and engines during the quarter. Sale-leaseback transactions generated $212 million of cash proceeds and $118 million of gains. Management said aircraft sales are a recurring source of cash that supports reinvestment in newer, more efficient aircraft, and expects future aircraft values to remain strong barring a significant macro change.
- Depreciation Benefit and 2027 Fleet GrowthUpdated salvage-value assumptions are expected to reduce depreciation expense by a bit more than 10%. The benefit began to affect the third quarter and is expected to apply for the full quarter beginning in the fourth quarter. The MAX 7 has been certified, and 2027 total deliveries are expected to be higher than in 2026, with an increased level of retirements also expected.
- Initiative Economics Tracking AheadManagement said the approximately $1 billion of EBIT expected from seat assignments and extra-legroom seats in 2027 remains on track, if not ahead. The approximately $1 billion EBIT contribution discussed for bag fees is also tracking ahead, with bag fees having increased somewhat during the year.
- Focused Capacity DeploymentSouthwest expects full-year 2026 capacity growth of approximately 1.2% and said it will not chase growth at the expense of returns or profitability. For fourth-quarter published capacity, 95% of year-over-year seat growth touches a Southwest point of strength, and more than half of that growth is in markets where the rest of the industry is reducing seats. Of 22 strategic focus markets, 18 improved operating margin year over year, two were essentially flat, and two declined.
- Profit-Sharing and Future Financial FrameworkSouthwest has accrued approximately $165 million in profit sharing year to date. The company plans to hold a Capital Markets Day in New York on March 2, 2027, where it expects to present a multiyear financial framework, management targets, and additional plans to strengthen its competitive position and create long-term value.
MX:LUV Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 27, 2027 | 2026 (Q4) | 13.06- | 10.79 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 10.6212.28 | 2.05 | 500.00% (+10.23) | |
| Jul 22, 2026 | 2026 (Q2) | 9.4917.48 | 8 | 118.60% (+9.49) | |
| Apr 22, 2026 | 2026 (Q1) | 8.808.37 | -2.42 | 446.15% (+10.79) | |
| Jan 28, 2026 | 2025 (Q4) | 10.5610.79 | 10.42 | 3.57% (+0.37) | |
| Oct 22, 2025 | 2025 (Q3) | -0.692.05 | 2.79 | -26.67% (-0.74) | |
| Jul 23, 2025 | 2025 (Q2) | 9.508.00 | 10.79 | -25.86% (-2.79) | |
| Apr 23, 2025 | 2025 (Q1) | -3.42-2.42 | -6.7 | 63.89% (+4.28) | |
| Jan 30, 2025 | 2024 (Q4) | 8.5910.42 | 6.88 | 51.35% (+3.53) | |
| Oct 24, 2024 | 2024 (Q3) | 0.892.79 | 7.07 | -60.53% (-4.28) |
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.
