Southwest Airlines' Q3 2026 Earnings: What to Expect

Dallas, Texas-based Southwest Airlines Co. (LUV) is a passenger airline company offering scheduled air transportation services in the U.S. and near-international markets. Valued at $20.4 billion by market cap, the company offers inflight entertainment, the Rapid Rewards loyalty program, digital platforms like SWABIZ for business travel, and extra services including Southwest's EarlyBird Check-In, upgraded boarding, and pet and unaccompanied minor transportation. The airline giant is expected to announce its fiscal third-quarter earnings for 2026 after the market closes on Wednesday, Oct. 21. 

Ahead of the event, analysts expect Southwest Airlines to report a profit of $0.61 per share on a diluted basis, up 454.6% from $0.11 per share in the year-ago quarter. The company has surpassed or met Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect Southwest Airlines to report EPS of $2.98, up 220.4% from $0.93 in fiscal 2025. Its EPS is expected to rise 62.4% year over year to $4.84 in fiscal 2027. 

LUV stock has outperformed the S&P 500 Index’s ($SPX) 16% gains over the past 52 weeks, with shares up 31.5% during this period. Similarly, it outperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 10.4% rise over the same time frame.

Southwest Airlines has partnered with JPMorgan Chase & Co. (JPM) to launch an inaugural network of airport lounges across major hubs starting in late 2027, reinforcing its customer experience and loyalty ecosystem while riding strong market momentum that has consistently outpaced the SPX over the past year.

Analysts’ consensus opinion on LUV stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” eight give a “Hold,” one advocates a “Moderate Sell,” and three indicate a “Strong Sell.” LUV’s average analyst price target is $49.52, indicating a potential upside of 18.9% from the current levels. 

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.