SOUTHWEST AIRLINES CO (LUV) Form 10-Q — Oct 22, 2026
Southwest Airlines reported record third quarter 2026 operating revenues 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. The surge was driven by transformation initiatives — bag fees launched May 2025 and assigned/extra legroom seating effective January 27, 2026 — which pushed RASM to an all-time record 18.55 cents, up 21.6%. A $285 million breakage revenue reversal from prior years' non-expiring flight credits also weighed on GAAP results as a special item.
Key figures
- Eps
- 0.55
- Revenue
- 8422
- Guidance
- 2026 net capital spending expected between $2.5 billion and $2.75 billion
- Net Income
- 270
- Revenue Yoy
- 21.2%
- Total Assets
- 30539
- Cash Position
- 3624
- Shares Outstanding
- 489602380
- Rasm yoy
- 21.6%
- Rasm cents
- 18.55
- Load factor
- 79.8%
- Fuel cost yoy
- 63.3%
- Nine month revenue
- 24104
- Q3 2025 net income
- 54
- Q3 2025 diluted eps
- 0.1
- Sale leaseback gain
- 118
- Fuel cost per gallon
- 3.92
- Nine month net income
- 730
- Term loan outstanding
- 1500
- Nine month diluted eps
- 1.47
- Non gaap diluted eps q3
- 0.66
- Q3 2026 operating income
- 379
- Breakage revenue reversal
- 285
- Revolving credit facility
- 2000
- Dividends paid nine months
- 357
- Share repurchases nine months
- 1250
- Remaining buyback authorization
- 450
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