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Southwest Airlines (LUV) guidance and outlook
Southwest Airlines (LUV) updated its guidance on Oct 21, 2026: Revenue (segment) +21.6% for FY2026; Capital expenditures (segment) $2.5B–$2.8B for FY2026. Southwest Airlines' 10-Q filed Oct 22, 2026 makes 16 forward-looking statements, 6 of them new and 2 no longer said since the filing before.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| Revenue | FY2026 | +21.6% | new |
| Capital expenditures | FY2026 | $2.5B–$2.8B | new |
From the earnings release filed Oct 21, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Oct 22, 2026
- On a GAAP basis, the Company’s results for the nine months ended September 30, 2026, included a reversal of $285 million of breakage revenue recorded in prior years related to a portion of flight credits issued to Customers between July 2022 and December 2025 that have either been redeemed or are expected to be redeemed in future periods.
- new · The Company expects to complete the fleet-wide rollout of Starlink in fall 2027.
- new · In spring 2027, the Company plans to enable Members to earn and redeem Rapid Reward points for travel through new international loyalty partners.
- new · The Company currently expects lounges to open in late 2027.
- new · In third quarter 2026, the Company and Chase amended the Co-brand Agreement to extend the term of the agreement and add a new, premium, Southwest Rapid Rewards Credit Card issued by Chase, which is expected to launch in 2027 and provide access to the new Southwest lounge network.
- new · The Company expects to complete these readiness activities in approximately three to six months, and anticipates taking delivery of its first -7 aircraft in late 2026, with entry into service expected in 2027.
- The continued deliveries of MAX aircraft are expected to remain critical to the Company's efforts to modernize its fleet.
- Due to higher-than-projected Customer redemptions of these non-expiring flight credits, along with updated projections of future redemptions, the Company has revised its estimates with regards to the remaining non-expiring flight credits that remain available for redemption.
- Therefore, management utilizes non-GAAP financial measures to evaluate the Company’s financial performance, anticipate future operating results, and assess trends without the impact of items that can vary significantly from period to period.
- It is calculated by the Company, in part, using non-GAAP financial measures, which include charges or benefits that are deemed "special items." As noted above, the Company believes "special items" make it difficult to compare to prior periods, anticipated future periods, or industry trends since these items cannot be reliably predicted or estimated.
- new · The Company expects its 2026 net capital spending to be between $2.5 billion and $2.75 billion, which includes the impact of proceeds from sales of assets and sale-leaseback transactions.
- The Company intends to use the proceeds from any future securities sales off this shelf registration statement for general corporate purposes.
Southwest Airlines' latest quarter
Southwest Airlines, Q3 2026: revenue $8.4B (+21% year over year), operating margin 4.5%, net earnings $270M, operating cash flow $513M. The chart follows the revenue to costs, profit and cash.
Questions
Did Southwest Airlines raise or lower its guidance?
Southwest Airlines (LUV) updated its guidance on Oct 21, 2026: Revenue (segment) +21.6% for FY2026; Capital expenditures (segment) $2.5B–$2.8B for FY2026.
What does Southwest Airlines expect?
The Company expects to complete the fleet-wide rollout of Starlink in fall 2027. In spring 2027, the Company plans to enable Members to earn and redeem Rapid Reward points for travel through new international loyalty partners. The Company currently expects lounges to open in late 2027.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.