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Southwest Airlines Soars: Profit to Quadruple by 2026!
29 Jan
Summary
- Southwest projects adjusted earnings per share to reach $4 by 2026.
- The airline ended its open seating policy, introducing seat selection fees.
- First-quarter revenue per available seat mile is expected to jump at least 9.5%.
Southwest Airlines has announced ambitious financial projections, forecasting a fourfold surge in adjusted earnings per share by 2026, reaching an estimated $4 per share. This figure surpasses current analyst expectations and represents a substantial increase from the 93 cents reported last year.
The airline's optimistic outlook is closely tied to its recent implementation of assigned seating, a departure from its historical open-seating policy which officially concluded earlier this week. This transition includes the introduction of seat-selection fees and the availability of extra-legroom seats.
These strategic changes are designed to enhance the company's revenue streams and overall profitability. For the first quarter of 2026, Southwest anticipates adjusted earnings of 45 cents per share and a significant increase of at least 9.5% in revenue per available seat mile, signaling strong booking trends.
In the fourth quarter of the previous year, Southwest reported a profit of $323 million, or 61 cents per share, an improvement from the same period a year prior. Total revenue for the quarter also saw a 7.4% increase, reaching $7.44 billion.
