Southwest Airlines Co. (LUV) Earnings
Southwest Airlines Co. is expected to report next earnings on July 22, 2026 (in NaN days), with a consensus EPS estimate of $0.49. LUV has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise +96.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $0.45 | $0.45 | +0.0% | $7.2B | -0.3% |
| Jan 28, 2026 | $0.56 | $0.58 | +3.6% | $7.4B | +4.2% |
| Oct 22, 2025 | $-0.04 | $0.11 | +398.7% | $6.9B | +0.5% |
| Jul 23, 2025 | $0.51 | $0.43 | -15.9% | $7.2B | -0.7% |
| Apr 23, 2025 | $-0.18 | $-0.13 | +29.2% | $6.4B | +0.6% |
| Jan 30, 2025 | $0.46 | $0.56 | +21.3% | $6.9B | -0.4% |
| Oct 24, 2024 | $0.00 | $0.15 | +3650.0% | $6.9B | +1.4% |
| Jul 25, 2024 | $0.51 | $0.58 | +13.7% | $7.4B | +0.4% |
| Apr 25, 2024 | $-0.34 | $-0.36 | -7.1% | $6.3B | -1.4% |
| Jan 25, 2024 | $0.11 | $0.37 | +236.4% | $6.8B | +1.2% |
| Oct 26, 2023 | $0.38 | $0.38 | +0.0% | $6.5B | -1.5% |
| Jul 27, 2023 | $1.10 | $1.09 | -0.9% | $7.0B | +0.9% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 23, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Core strengths: Largest domestic network, most nonstop flights, operational excellence (named Wall Street Journal's Best U.S. Airline of 2025), cost discipline, operational efficiency, and legendary service. - Product initiatives: Successful implementation of assigned seating and extra legroom, new partnership with Starlink (by end of year, Starlink available on at least 300 aircraft, roughly two - thirds of fleet with in - seat power and larger overhead bins). - Network adjustment: Suspension of operations at O'Hare and Dulles, consolidating operations in other locations and relocating capacity to high - performing opportunities. - Customer response: Customer purchasing behavior shift, with mix of customers buying up from base product increasing; managed corporate revenue increased in first quarter and March; enrollments and tier status earnings in rapid rewards program strengthened.
Guidance
- Second quarter EPS expected in the range of 35 cents to 65 cents, using an average fuel price range of $4.10 to $4.15. - Second quarter unit revenue growth expected between 16.5% and 18.5%. - Full - year adjusted EPS guide not updated as there is significant economic and geopolitical uncertainty, especially regarding fuel prices which could impact.
Segment performance
First quarter EPS was 45 cents, a significant year - over - year improvement from a loss. Operating margin was 4.6%, an 8.1 point improvement year over year. Operating cash flow was 1.4 billion, an increase of 65 percent from the first quarter of 2025. Passenger revenue growth, operating revenue, and unit revenue each set first quarter records, with March marking the largest operating revenue month in history.
Risks & headwinds
- Geopolitical upheaval which could impact the industry. - Much higher fuel prices which if sustained could require higher ticket prices, and there is a risk of demand destruction due to potential pushback on fare increases.
Analyst Q&A
Q: Mike Lindenberg with Deutsche Bank asked about upsell from 20% to 60% and thoughts on competing against government - controlled carriers.
A: Andrew responded that at least half of 11.6% yield increase came from people buying up, and on competition, focused on improving self and competing with top of industry, results showing margin expansion and strong unit revenue growth.
Q: Jamie Baker with J.P. Morgan asked about second quarter RASM guide and traffic liability.
A: Tom responded that RASM guide is based on current strong trends, and on traffic liability, not getting into detail of old vs new methodology but stating nothing unusual noted in trends.
Q: Connor Cunningham with Mellius Research asked about danger of assuming fuel recapture and capital allocation.
A: Bob responded that assuming fuel recapture is dangerous as market conditions dictate, and on capital allocation, having strong investment - grade balance sheet is key, staying within guardrails of liquidity.
Q: Catherine O'Brien with Goldman Sachs asked about corporate efforts and breakdown of OneCube sales.
A: Andrew responded that corporate numbers have responded with acceleration of new customers and buy - up to higher fares, and on OneCube, cash sales accelerated more than redemptions.
Q: Ravi Shankar with Morgan Stanley asked about full - year EPS and monetizing initiatives.
A: Bob responded that but for fuel, everything is on track, and there is still room to run in monetizing initiatives.
Q: Scott Group with Wolf Research asked about capacity acceleration and cost outperformance.
A: Bob responded that capacity acceleration is due to close - in demand shaping and capacity activity, and cost outperformance is structural, with key buckets including people expense, technology, and maintenance/fleet.
Q: Duane Fenningworth with Evercore ISI asked about fleet requirements and consolidation.
A: Bob responded that fleet retirements tied to new aircraft delivery, and on consolidation, focus on what can be controlled, no comment on rumors.
Q: Atul Malaswari with UBS asked about capacity growth acceleration and cost buckets.
A: Bob responded on capacity growth acceleration reasons, and Tom responded on key cost buckets including people, technology, and maintenance/fleet.
Q: Sabi Sith with Raymond James asked about aircraft sale benefits and aircraft sales going forward.
A: Tom responded that aircraft sale benefits were not super material, and aircraft sales output based on growth and environment.
Q: John Godden with the Citigroup asked about consolidation philosophy.
A: Bob responded that consolidation must make financial sense, get approval, and be good for customers.
Q: Tom Fitzgerald with TD Cowen asked about load factors.
A: Andrew responded that focus on RASM which is performing well, and will continue to push RASM.
Q: Brandon Oglenski with Barclays asked about share view and upsell opportunity.
A: Andrew responded that growth slower means share may drop but customers love new products, and there is upside in upsell opportunity.
Q: Sheila Chialo with Jefferies asked about fuel price impact on capacity and aircraft flexibility.
A: Bob responded that will be aggressive with capacity if fuel moves up, and aircraft flexibility due to large unencumbered owned fleet.
Q: Dan McKenzie with Seaport Global asked about investment grade rating and upsell opportunity.
A: Dan responded that investment grade rating is a differentiator, and there is upside in upsell opportunity.
Q: Chris Weatherby with Wells Fargo asked about fare increases since March 1st.
A: Answered that participated in all industry - wide fare moves which stuck.
Q: David Vernon with Bernstein asked about rapid rewards card program.
A: Answered that card program remuneration up approximately 8% year over year, and expect acceleration if offering high - fee card.
Q: Chris Stephanopoulos with SIG asked about network resilience.
A: Andrew responded that strong demand across entire network, only weakness in Mexican beach resorts and Hawaii with sequential improvement.
Q: Michael Goldie with BMO Capital Markets asked about maintenance expense and headcount.
A: Andrew responded that maintenance expense driven by new aircraft delivery and divesting older equipment, and on headcount, headcount per ASM climb related to network resiliency and keeping headcount in right levels.