SOUTHWEST AIRLINES CO (LUV) Form 8-K — Oct 21, 2026
Southwest Airlines reported record third quarter 2026 operating revenue of $8.4 billion, up 21.2% year over year, with net income of $270 million ($0.55 diluted EPS) versus $54 million ($0.10) a year ago. Adjusted EPS was $0.66 and RASM hit an all-time record, up 21.6%. The margin expansion came despite an $821 million fuel cost headwind (fuel at $3.92/gallon vs $2.40 last year), with adjusted operating margin of 5.4%, up 4.8 points year over year.
Key figures
- Eps
- 0.55
- Revenue
- 8422000000
- Guidance
- Q4 2026 adjusted EPS $0.55-$0.80; FY2026 adjusted EPS $2.60-$2.85; Q4 RASM +19% to +21%; Q4 CASM-X +4.0% to +4.5%
- Net Income
- 270000000
- Total Debt
- 5887000000
- Revenue Yoy
- 21.2%
- Cash Position
- 3624000000
- Shares Outstanding
- 489 million basic weighted average
- Capex
- $1.0 billion gross in Q3; FY net capex $2.5-$2.75 billion
- Liquidity
- $5.6 billion
- Fleet Count
- 803
- Rasm Growth
- 21.6% (all-time record)
- Adjusted EPS
- 0.66
- Fuel Headwind
- $821 million increase in fuel costs / $1.08 adjusted EPS headwind
- Dividends Paid
- $176 million
- Gross Leverage
- 1.9x
- Operating Margin
- 4.5% (up 4.0 pts YoY)
- Adjusted Net Income
- $328 million
- Fuel Cost Per Gallon
- $3.92 (vs $2.40 prior year)
- Adjusted Operating Margin
- 5.4% (up 4.8 pts YoY)
- Share Repurchase Remaining
- $450 million of $2.0 billion authorization
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