# Southwest Airlines Q3 Earnings Beat

> Southwest Airlines reports 500% EPS jump to $0.66 despite $820M fuel headwind.
- Title: Southwest Airlines Q3 Earnings Beat · BigGo Finance | Shortify
- Summary: Southwest Airlines reports 500% EPS jump to $0.66 despite $820M fuel headwind. Southwest Airlines delivered record Q3 2026 earnings with 500% EPS growth to…
- Keywords: southwest airlines, q3 2026, earnings call, eps, rasm, fuel costs, adjusted operating margin, starlink wifi, rapid rewards, capital markets day, finance, markets
- Source: BigGo Finance — https://finance.biggo.com/news/US_LUV_2026-10-22
- Author: BigGo Finance
- Published: 2026-10-22T16:34:18+00:00
- Read time: 1 min
- Topics: southwest airlines, q3 2026, earnings call, eps, rasm, fuel costs, adjusted operating margin, starlink wifi, rapid rewards, capital markets day, finance, markets
## Q3 2026 Results
Southwest Airlines reported third-quarter 2026 adjusted earnings per share of $0.66, a 500% year-over-year increase, exceeding the midpoint of guidance despite an $820 million fuel headwind.
## Margin Expansion
Adjusted operating margin expanded 4.8 points to 5.4% despite an $820 million year-over-year fuel headwind.
## Record RASM
RASM surged 21.6% to an all-time record, surpassing the high end of guidance.
## Revenue Growth
Record third-quarter operating revenue of $8.4 billion was driven by broad-based demand, with managed business revenues up 29%.
## Q4 Guidance
For Q4, Southwest guides RASM up 19-21% and adjusted EPS of $0.55-$0.80, based on fuel at $4.55 per gallon.
## CEO Confidence
CEO Bob Jordan emphasized that the transformation is complete and the focus has shifted to optimizing the business and investing in customer experience.
## Customer Experience
The company announced enhancements to Rapid Rewards, including a new Platinum tier, international partnerships, and the ability to redeem points for ancillaries.
## Starlink Wi-Fi
Southwest plans to complete its fleet-wide Starlink Wi-Fi rollout by this time next year and recently became the first U.S. airline to offer flight shopping through ChatGPT.
## Capital Markets Day
Southwest will host a Capital Markets Day on March 2, 2.027, in New York, where it will share its multi-year financial framework and targets.
## 2027 Outlook
Management expressed confidence in expanding margins meaningfully in 2027 even with high fuel prices.
## Q4 Revenue
The company expects approximately 65% of Q4 revenue already booked with adjusted EPS of $0.55-$0.80.
## Fleet Strategy
Southwest plans approximately 67 new aircraft deliveries and 60 retirements in 2026, with net capital spending of $2.5-$2.75 billion.
## Key takeaway

Southwest Airlines delivered record Q3 2026 earnings with 500% EPS growth to $0.66, exceeding guidance despite $820 million fuel costs.