Southwest Q3 Revenue Hits Record $8.4B, Margin Widens Despite Fuel
DALLAS – October 31, 2026 -- Southwest Airlines (NYSE: LUV) posted record third-quarter operating revenue of $8.4 billion, up 21.2% year-over-year, and widened its operating margin by 4.0 points to 4.5% even as fuel costs rose by $821 million.
Net income was $270 million, or $0.55 diluted EPS. Adjusted net income was $328 million, or $0.66 per share. The adjusted operating margin was 5.4%, up 4.8 points. Fuel cost $3.92 per gallon, against prior assumptions of $3.70 to $3.75, and cut $1.08 from adjusted EPS.
Unit revenue rises 21.6% on 0.4% less capacity
Unit revenue (RASM) set an all-time record and beat prior guidance, while capacity fell 0.4%. The airline also reported its highest passenger yield ever and record third-quarter passenger revenue. Managed business revenue reached a third-quarter record, and 20 of the 50 strongest managed business booking days in company history fell in the quarter.