US EditionSouthwest shares jump most since 1978 as airline predicts profits could quadruple this year
Southwest Airlines added fees and premium options to boost revenue, forecasting adjusted earnings per share of $4 in 2026, surpassing analyst estimates.
- Southwest Airlines on Wednesday forecast a surge in 2026 profits after overhauling its half-century-old business model and expects at least an adjusted $4 a share this year, topping LSEG's $3.19 estimate.
- Moving away from open boarding later this month, Southwest Airlines adds assigned seats, fare bundles, paid extra-legroom options, and introduced checked-bag fees last year to boost revenue.
- Guidance included a projection that the carrier forecast adjusted earnings of 45 cents and expects revenue per seat mile to rise 9.5% on Wednesday.
- The moves position Southwest Airlines more like rivals as analysts caution the strategy assumes premium demand will hold while price-sensitive travelers face reduced legroom and fewer inclusions.
- Industry data show that the WestJet backlash renewed scrutiny over how far carriers can tighten economy cabins, with some safety concerns raised about denser seating and emergency evacuations, despite Transport Canada stating configurations meet safety standards.
12 Articles
12 Articles
WestJet seat U-turn exposes risks for airlines squeezing economy fliers
MONTREAL — Canada's WestJet has abruptly walked back a rollout of tighter economy seating after videos showed passengers struggling with cramped legroom, offering a sharp warning to airlines that are redesigning cabins to favor higher‑paying travelers — often by trimming…
Southwest Airlines stock slips as LUV cools off after 18.7% surge on profit forecast
New York, Jan 30, 2026, 14:50 EST — Regular session. Shares of Southwest Airlines Co slipped 1.1% to $47.99 in Friday afternoon trading, retreating after Thursday’s strong rally. Investors seemed to be digesting how much of the recent upbeat sentiment is already baked into the stock price. The retreat comes after Thursday’s 18.7% surge, driven by the carrier’s upgraded annual profit outlook that pushed it to the top of the S&P 500’s percentage g…
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