Southwest Airlines reported second-quarter 2026 adjusted earnings of $0.94 per share, up about 119% year over year and well above the consensus, on record quarterly revenue of $8.43 billion, which rose 16.4% but missed top-line expectations. The results were aided by demand for enhanced products, record managed-business revenues, and disciplined cost control despite an $889 million year-over-year jump in fuel expense. Key metrics showed solid demand growth with the load factor at 79.3%, average fare up 20.9%, and revenue per available seat mile rising, even as fuel costs surged and total operating expenses climbed. The higher fuel bill and market volatility prompted the company to lower its full-year outlook, with Southwest now projecting 2026 earnings per share in the range of $3.25 to $4.25, down from a previous at-least-$4 target. American Airlines also reduced its guidance amid the spike in fuel costs, highlighting broader industry pressure from crude oil moving above $100 per barrel and jet fuel prices jumping about 30% in July. Despite these headwinds, executives stressed robust demand and revenue trends, with Southwest pointing to strength in loyalty and managed business as a foundation for continuing profitability.