Southwest Airlines Company (NYSE:LUV) missed analyst estimates for first-quarter revenue and earnings per share, sending shares lower on Wednesday after market close.
• Southwest Airlines stock is showing notable weakness. What’s behind LUV decline?
Southwest Airlines Q1 Results
Southwest reported first-quarter revenue of $7.25 billion, up 12.8% year-over-year. The revenue total was a company record for the first quarter, but came in shy of a Street consensus estimate of $7.27 billion, according to data from Benzinga Pro.
First-quarter passenger revenue of $6.6 billion was up 13.4% year-over-year and a company first quarter record.
Overall, the company set first-quarter records for first-quarter passenger, operating and unit revenues.
The company’s first-quarter earnings per share of 45 cents also missed the Street consensus estimate of 47 cents per share.
"First quarter 2026 marked a turning point for Southwest, as our broad set of commercial, operational, and cost initiatives is now translating into terrific results," the company said.
Southwest said it saw strong demand for new product offerings in the first quarter, helping to boost revenue.
"Our customers have embraced and value our new products, and that is reflected in our financial performance," Southwest CEO Bob Jordan said.
What's Next for Southwest
The company is guiding for second quarter earnings per share to be in a range of 35 cents to 65 cents per share. The current Street consensus estimate is 60 cents per share, according to Benzinga Pro.
The company said it would not be productive to update its full-year earnings per share guidance "given the ongoing macroeconomic uncertainty."
Southwest said it will need lower fuel prices and/or stronger revenue than expected to offset "higher fuel expense."
"We are confident in our positioning and the strong momentum we are seeing at Southwest," Jordan said.
Southwest Stock Price Action
Southwest stock is down 4.04% to $37.76 in after-hours trading on Wednesday versus a 52-week trading range of $24.63 to $55.11.
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