Quarterly ResultJul 22, 2026, 04:13 PM
Southwest Airlines Q2 Adj. EPS $0.94; Full-Year Guidance Lowered
AI Summary
Southwest Airlines reported strong second quarter 2026 financial results, with adjusted diluted EPS of $0.94 and record operating revenues of $8.4 billion, driven by broad demand and cost discipline. The company achieved significant margin expansion despite a nearly $900 million increase in fuel expense. However, Southwest lowered its full-year 2026 adjusted EPS guidance to a range of $3.25 to $4.25, from its prior expectation of at least $4.00, while maintaining a positive outlook for Q3.
Key Highlights
- Q2 adjusted diluted EPS $0.94, up 118.6% year-over-year.
- Record operating revenues $8.4 billion, up 16.4% year-over-year.
- Adjusted operating margin 6.7%, up 3.3 points year-over-year.
- Full-year 2026 adjusted EPS guidance $3.25-$4.25, lowered from prior.
- Q3 2026 adjusted EPS guidance $0.50-$0.75.
- Returned $88 million to shareholders through dividends.
- Managed business revenues reached an all-time record, increasing 30% YoY.
- Included $285 million adjustment for reversal of breakage revenue.
Price Impact
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