Southwest Airlines Co. (LUV) Earnings Call Transcripts

Southwest Airlines Co.'s Latest Earnings Call - Q2 FY2026

In the second quarter of 2026, Southwest Airlines (LUV:US) reported a significant earnings performance, with adjusted earnings per share (EPS) of $0.94, reflecting a 120% year-over-year increase. The company achieved record adjusted operating revenues of $8.7 billion, driven by a 20.1% increase in adjusted unit revenues, surpassing management's prior guidance. Despite a challenging fuel environment with nearly $900 million in increased fuel expenses, management maintained a positive outlook, adjusting full-year EPS guidance to a range of $3.25 to $4.25, down from a previous expectation of at least $4.00, due to fuel price volatility.

Reported metrics

Guidance from management

Management expects third-quarter unit revenue growth of 17.5% to 19.5% year-over-year, with full-year adjusted EPS guidance revised to $3.25 to $4.25, reflecting current fuel prices and demand trends.

What management said

Thanks, Tom. This now concludes our prepared remarks. We'll open the line for analyst questions. To help us manage time efficiently, please ask your 1 or 2 questions back to back at the outset. All right, operator, we are ready for your first question.

Tom, I'll take the first one on the fleet side. My comment before was around having maintenance value in the assets that we are selling. And that value is trading strongly in the market now. The underlying assets, aircraft and engines and other assets are -- that market is strong, and we think it will be strong for the foreseeable future. But then the actual value of the maintenance itself is also trading at higher a...

What analysts pressed on

Analysts expressed concerns about the potential impact of previous initiatives on future unit revenue growth, particularly regarding the lapping of bag fees and other pricing strategies. There were also inquiries about the sustainability of demand and pricing strength into 2027.

Main topics on the call

• Record Revenue Performance — Southwest reported adjusted operating revenues of $8.7 billion, marking the highest quarterly revenue in the company's history. Management noted, "Adjusted unit revenues increased 20.1% year-over-year to an all-time quar...
• Cost Management and Efficiency — Despite a $900 million increase in fuel expenses, Southwest's cost discipline was evident with CASM-X rising only 3.4% year-over-year. Management emphasized that "cost discipline remains broad-based across the company," ...
• Transformation Initiatives — Management highlighted that all major initiatives contributed to the quarter's performance, stating, "The results demonstrate that the transformation is working, with a 9% after-tax return on invested capital." This tran...
• Guidance Adjustment — For full-year 2026, Southwest revised its adjusted EPS guidance to $3.25 to $4.25, reflecting the impact of fuel costs and current fare environment. Management stated, "Even with an estimated year-to-date fuel headwind o...

Read the full Southwest Airlines Co. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 43 Southwest Airlines Co. earnings call transcripts on record, spanning January 23, 2020 to July 23, 2026. Based on this history, Southwest Airlines Co. reports quarterly. The most recent call on file is dated July 23, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

LUV

Exchange

NYSE

Country

US

Sector

Industrials

Industry

Passenger Airlines

Calls on record

43

First call

January 23, 2020

Most recent

July 23, 2026

Reporting cadence

quarterly