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Southwest Airlines 8-K Report, Financial Results (Oct 21, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 21, 2026
Period End
October 21, 2026
Security
LUV
In the record · 2016–202610-K1210-Q338-K204

LUV filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 204 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Nov ’17Nov ’17
  2. Leadership change8-K · Nov ’21Nov ’21
  3. Material agreement8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 8-K filed October 21, 2026. Cited figures are marked; the original filing is the authoritative source.

Southwest Airlines Co. (NYSE: LUV) furnished a press release announcing third quarter 2026 results under Item 2.02.

Operating revenues were $8.4 billiona, up 21.2% year-over-year, a third-quarter company record, with unit revenues (RASM) up 21.6% to an all-time record on capacity down 0.4%. Net income was $270 million, or $0.55 diluted EPS, versus $54 million in the prior-year quarter. Excluding special items, adjusted net income was $328 million, or $0.66 adjusted EPS, and adjusted operating margin was 5.4%, up 4.8 points.

Fuel was a significant headwind: fuel cost per gallon was $3.92b, above prior assumptions of $3.70 to $3.75, and fuel expense rose $821 million year-over-year, representing a $1.08 headwind to adjusted EPS. For fourth quarter 2026, the company guides to adjusted EPS of $0.55 to $0.80, RASM growth of 19% to 21%, and CASM-X growth of 4.0% to 4.5%, with fuel assumed at approximately $4.553 per gallon. Full-year 2026 adjusted EPS guidance is $2.60 to $2.85, and full-year capacity growth is now expected at approximately 1.2%, versus prior guidance of approximately 1.5%.

Liquidity ended the quarter at $5.6 billionc, gross leverage was 1.9x, and $176 million was paid in dividends during the quarter. The company also announced a Capital Markets Day in New York City on March 2, 2027, where it plans to present a multi-year financial framework and targets.

02—Key points

Key Highlights

  1. Third-quarter operating revenues of $8.4 billion, up 21.2% year-over-year, a third-quarter company record; RASM rose 21.6% to an all-time record.
  2. Net income of $270 million ($0.55 diluted EPS) versus $54 million a year earlier; excluding special items, adjusted net income was $328 million ($0.66 adjusted EPS).
  3. Operating margin of 4.5%, up 4.0 points; adjusted operating margin of 5.4%, up 4.8 points, despite an $821 million increase in fuel expense.
  4. Fuel cost of $3.92 per gallon exceeded prior assumptions of $3.70 to $3.75 and was a $1.08 headwind to adjusted EPS.
  5. Fourth-quarter 2026 guidance: adjusted EPS of $0.55 to $0.80, RASM up 19% to 21%, CASM-X up 4.0% to 4.5%; full-year 2026 adjusted EPS of $2.60 to $2.85.
  6. Ended the quarter with $5.6 billion in liquidity and gross leverage of 1.9x; paid $176 million in dividends and $450 million remains under the $2.0 billion share repurchase authorization.
  7. Capital Markets Day scheduled for March 2, 2027 in New York City to present a multi-year financial framework and targets.

03—Questions

Frequently Asked Questions

  1. How did Southwest perform in the third quarter of 2026?

    Operating revenues reached a third-quarter record of $8.4 billion, up 21.2% year-over-year, and unit revenues hit an all-time record, up 21.6%. Net income was $270 million, or $0.55 per diluted share, compared with $54 million a year earlier. Adjusted EPS, excluding special items, was $0.66.

  2. What was the main headwind to earnings this quarter?

    Fuel. Fuel cost averaged $3.92 per gallon, above prior assumptions of $3.70 to $3.75, and fuel expense rose $821 million year-over-year. The company said this represented a $1.08 headwind to adjusted EPS.

  3. What is the outlook for the fourth quarter and full year 2026?

    For the fourth quarter, the company expects adjusted EPS of $0.55 to $0.80, RASM growth of 19% to 21%, and CASM-X growth of 4.0% to 4.5%, based on a fourth-quarter fuel cost assumption of approximately $4.553 per gallon. For full-year 2026, adjusted EPS is guided to $2.60 to $2.85, and capacity growth is now expected at approximately 1.2%.

  4. What should investors watch for next?

    The company will host a Capital Markets Day in New York City on March 2, 2027, where it says it will share a multi-year financial framework, the targets it is managing toward, and its path to achieving them.

04—Continue

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