Southwest Airlines reported record third-quarter revenue as higher unit revenue and strong demand outweighed a sharp increase in fuel costs. The carrier released results on October 21, 2026, for the quarter ended September 30.

Southwest Airlines revenue reaches record

Unit revenue rose 21.6% to an all-time high as capacity declined 0.4%. Passenger revenue and passenger yield also reached records, while managed-business revenue hit a third-quarter peak. The company reported diluted earnings per share of $0.55 and adjusted earnings per share of $0.66.

Operating expenses increased 16.3% to $8.0 billion. Fuel cost averaged $3.92 per gallon, above the company’s prior assumption of $3.70 to $3.75. Fuel expense rose $821 million from a year earlier and reduced adjusted earnings per share by an estimated $1.08.

Bar chart showing Southwest Airlines Q3 2026 operating revenue, operating expenses and net income
Southwest Q3 financial snapshot. Source: Southwest Airlines.

The result adds another transportation indicator after Wabtec reported higher rail sales and backlog. It also follows Tesla’s latest automotive results and Moody’s report on financial-market activity.

Fourth-quarter guidance balances demand and fuel

Southwest forecast adjusted fourth-quarter earnings of $0.55 to $0.80 per share. It expects capacity to grow 3% to 4% and unit revenue to rise 19% to 21%. However, the company assumes fuel costs of about $4.55 per gallon, based on the October 15 forward curve.

The carrier ended September with $5.6 billion in liquidity and 803 aircraft. It expects 67 Boeing 737 deliveries during 2026 and plans roughly 60 retirements. Full-year adjusted earnings are projected between $2.60 and $2.85 per share. Figures come from Southwest Airlines’ October 21 earnings release.

Sharron Kendi is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence.