Earnings Call
Jul 22, 2026
Q2 FY2026
EPS Estimate
0.51
EPS Actual
0.94
Post-Earnings Close
$44.71
Earnings Reaction
-6.2%
Southwest Airlines delivered a genuinely transformational second quarter in 2026, with adjusted EPS of $0.94, roughly double the consensus estimate of $0.51 and up approximately 120% year over year. Adjusted RASM surged 20.1% to an all-time quarterly record, well above the high end of prior guidance of 16.5%-18.5%, while adjusted operating revenues reached $8.7 billion, also a record. The margin story is equally striking: adjusted operating margin expanded 3.3 points year over year to 6.7%, making Southwest the only major U.S. airline to expand margins meaningfully despite absorbing nearly $900 million in incremental fuel expense in the quarter, with jet fuel averaging $3.92 per gallon. ROIC reached 9% after-tax, a milestone management has been building toward for several quarters.
Report generated on Jul 24, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
Read the full LUV analysis
The complete report, with key themes, analyst Q&A summary, notable quotes, and market context — is free with an account. No password, no card.